Profit Max

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A program to increase profits, including a case study

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Profit Max

  1. 1. ProfitMAX Program<br />
  2. 2. Proposition<br />Is the valuation of your business lower than you expected? <br />Is the Balance Sheet impacting your ability to secure or increase financing from a bank? <br />After all these years of building the business, are you realizing the profit levels you expected?<br />Are Sales strong, but Cashflow tight?<br />
  3. 3. Proposition<br />The ProfitMAX Program is designed for owners who want to improve all the vital statistics of their business and maximize the value of what they have worked so hard to build<br />It’s not software<br />There are no “magic bullets”<br />It’s a series of tools, methodologies, processes and training that will improve the bottom line<br />We call it “dressing up piggy for market”<br />
  4. 4. Customizable Levels of Support<br />Business Benchmark<br />A thorough analysis of multiple, previous years financials<br />Graphs, Reports and Industry Comparisons in a 30+ page document that is delivered by our team in a 2 hour presentation<br />Trends, Issues and Recommendations for improvement identified<br />Comprehensive enough to take to your bank<br />
  5. 5. Customizable Levels of Support<br />Goal Seeking<br />A Projection Model created with “what if?” and sensitivity analysis. For example, what is the impact of decreasing Cost of Goods by 2% and improving Accounts Receivable by 5 days on Profit, Cashflow, Banking Ratios etc<br />This is a face-to-face interaction with our team and with the tools. The models are created and customized to each client.<br />The program includes opportunity to review and update the model on a regular basis (monthly or quarterly) to reflect the changes in the business<br />
  6. 6. Customizable Levels of Support<br />Management Training<br />In addition to the Benchmark and Goal Seeking components, “upskilling” your team in proactive financial measures is available<br />Profit Center (branches, regions, product lines etc) targets are determined and plans for improvement in each category identified<br />A training program is designed for the Profit Center managers or financial staff<br />Regular (monthly or quarterly) review of targets and progress for continuous improvement<br />
  7. 7. Customizable Levels of Support<br />Dashboard Dials<br />Interactive, graphical tools for management or non-finance people. Performance is measured against preset scales where color codes (like Green and Red) determine achievement against target.<br />
  8. 8. Fixed and Success Fee Options<br />Project Fee<br />Each component is separately priced, so you can “mix and match”<br />Retainer + Success Fee<br />Alternatively, the development and management of all the components is handled by our team with a single, monthly fee plus bonuses for goal achievement<br />Target Base lines are established and a success fees of 20% on the incremental portion only. For example, Net Profit increasing from 5% to 8% would warrant a fee of 20% of the increased (3%) profit amount. We call it “pennies for dollars you didn’t have”.<br />
  9. 9. Case History<br />Quarterly Revenue<br />The economy had a dramatic downward impact on Sales from Q4 of 2008 until late Q3 of 2009<br />Transportation & Logistics business that has been in operation for over 15 years. The CEO has 30+ years experience in this industry<br />Swiss Avenue Partners was engaged in Q3 2008 to increase the profitability in preparation for a proposed exit in late 2009, early 2010<br />
  10. 10. Quarterly Revenue<br />Today, Sales are higher than at any time in 2007, but still less than a $350,000 growth<br />Revenue growth is modest<br />
  11. 11. …but Profit growth is dramatic<br />Net profit <br />…and it exceeds16% in Q3 and Q4 !<br />EBIT grows during this same period by over 13%<br />
  12. 12. …and a positive Valuation effect<br />Net Valuation Improvement<br />Market value<br />For a Sale Price based on 2.5x EBITDA, the impact is dramatic<br />A dramatic increase in the Market Value for a modest $300,000 growth in Sales !<br />$1,470,000<br />$1,085,000<br />$385,000<br />
  13. 13. Other benefits<br />Profit Center driven<br />Each branch has clearly defined targets and the tools enable the CEO to work “on the business” <br /> Compensation plans for managers is now profit and not revenue based<br />Management Structure improved<br />Faster, better decisions by a team that is now able to anticipate change and make corrections in advance<br /> Responsibility to drive profits has been divested to a broader group, without compromise to financial controls<br />Reduced Earn Out<br />The CEO is no longer the key component to all aspects of the business and anticipates higher cash and lower Earn Out components in any transaction<br />The owners are currently entertaining an offer to purchase the company<br />
  14. 14. The ProfitMAX Team<br /><ul><li>Martin Rileyhas worked 13 years in the Commercial Banking industry and has been trained by the largest and most well known banks in the US. Martin's primary responsibilities were to analyze and assess the needs and abilities of a business to acquire capital as well as helping those businesses structure their capital acquisition. </li></ul>Martin has also spent six years as a CFO for a wireless telecommunications general contractor. In those six years, he helped grow the company from 4 to 20+ employees.<br /><ul><li>Linas Jarasius is a Corporate Financier with experience in the Australian, Asian, European and US markets. His career began with 15 years in the IT industry that culminated in founding and taking public a multi facet, HR-based services provider. He built the company to a market capitalization of $40 million and led three acquisitions totaling more than $13 million in that time. </li></ul> He later moved to London in 2000 where he was the CEO and major shareholder of a Corporate Finance house that was a joint venture with a UK Top 50 accounting firm. He relocated to San Francisco in 2005 where he co-founded Swiss Avenue Partners, LLC.<br /> Swiss Avenue Partners is a developer of tools for middle market sized businesses trying to grow or considering exit. In a few short years, the company has grown to offices in California (Sacramento, San Diego and San Francisco Bay area) and Texas (Austin, San Antonio).<br />Dave Scintocommenced practicing as a CPAin 1987. Prior to that time, he worked as a manufacturing analyst for a defense-related aerospace manufacturer. That experience, combined with his accounting knowledge, allows Dave to understand a company&apos;s operations and goals, and to provide meaningful contributions to systems related to efficiency and profit enhancement. <br />Dave holds a bachelor&apos;s degree in accounting from California State Polytechnic University, Pomona.<br />Dave is a member of the American Institute of CPA&apos;s, the California Society of CPA&apos;s, the Association of Certified Fraud Examiners, and the Government Audit Quality Control Center. He serves on the board of directors of a handful of public benefit non-profit agencies and is a part-time accounting instructor at Sierra College. <br />
  15. 15. What next?<br />Contact<br />Linas Jarasius<br />T: (916) 934 0626<br />Email for more information<br />E: Linas@SwissAvenuePartners.com<br />Web Site<br />www.SwissAvenuePartners.com<br />

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