Build your company to last; How to increase shareholders value; Stress Test your company

1. STRATEGIC TURNAROUND AND BUSINESS ADVISORY SERVICES
Built to Last
How to Run Your Company While Creating
Value (and prepare for a successful exit)
CLOUT Meeting, May 24, 2012

2. Why do Businesses Fail?
According to the SBA, over 50% of small businesses fail in the first five
years. Why?
 Inadequate financing
 Lack of adequate cash-flow
 Poor business planning
 Management incompetence
 Ignoring the competition
 Unworkable goals
 Uncontrolled Growth
 Poor systems and controls
 Poor inventory management
 Low sales (revenues)

3. How to Ensure Success?
 Set up internal Systems & Controls
 Internal control is defined as a process affected by an organization's
structure, work and authority flows, people and management information
systems, designed to help the organization accomplish specific goals or
objectives
 Checks & Balances
 Prevention and detection of fraud
 Assets and resources protection (human, tangible & intangible)
 Consistency and accuracy of procedures and reports
 Policies & Procedures Manual (accounting, HR, Ops)
 Solid foundation for growth

4. Internal Systems & Controls
 Systems (technology)
 Accounting (audit trail)
 Sales and Marketing
 Manufacturing
 ERP
 Systems (procedures)
 Accounting policies and procedures manual
 Accounting team – separation of functions
 Review process of financial and other reports
 Operations manual
 Human Resources Manual
 Disaster Recovery (internal - technology; external – utilities, fire, weather)
 Quarterly & Monthly Reviews
 Budget vs. Actuals (P&L, B/S, Cash-flow)
 Budget and forecast
 Key Performance Indicators “KPI” (sales, ops, financials, R&D, projects)

5. Best Practice
 Create/Update Strategic Business Plan
 Mission, Goals and Objectives
 Sales and Marketing
 Key Business Drivers
 Risks
 Annual Budget Process
 Based on last year
 Bottom Up
 Zero Budget
 Who participates
 Budget includes financials, marketing and sales plans, projects, manufacturing capacity, inventory
levels, other
 Risk assessment (including insurance policies)
 Quarterly & Monthly Reviews
 Budget vs. Actuals (P&L, B/S, Cash-flow)
 Budget and forecast
 KPI (sales, ops, financials, R&D, projects)
 Daily Dashboard
 KPI

6. Stress Test Your Company
 Identify Company’s weak points in good times, and during a downturn
 What Happens if…
 Lower Revenues
 Lower sales overall
 Customers are leaving (customer concentration)
 New customers are hard to come by
 Lower Gross Margins
 Expenses are growing faster than expected
 R&D – lack of new products
 Cash is tight
 A/R - Slower collections
 A/P – pay within terms?
 Financing
 Bank lines are tighter
 Higher interest rates
 Human Resources
 Do you have a strong management team?
 Who can replace you in case of vacation, emergency?

7. Value for Long Lasting
Success
 Implement necessary changes based on
stress test
 Follow Best Practices
 Build your business for the long term
 Have management depth
 If and when an exit occurs, your
company’s value will be enhanced

8. Who are we?
For many CEOs it is lonely at the top.
NYC Advisors’ team of senior executives will serve as your
trusted business advisor. We provide complete business,
strategic and operational support services through the
development and execution of innovative business plans
and solutions.
Our services include executive management services
such as interim and part-time CEO, CFO, Controller,
financial and operational turnarounds, buyouts, mergers
and acquisitions (M&A), strategic alliances and joint
venture support.

9. Yoav M. Cohen – Managing Partner NYC Advisors LLC
 Yoav brings over 25 years of experience providing successful financial and operating
leadership. He is an innovative negotiator and dealmaker, with proven ability to uncover
and implement unique and workable solutions for challenging business situations. Yoav has
special combination of Fortune 500, public and private mid-size companies, start-ups and
consulting. Yoav has experience in Mergers & Acquisitions, Strategic Planning, Finance &
Operations, Restructuring, Business Development, Team Building, and Business Analysis &
Management.
 Yoav co-founded NYC Advisors, LLC in 2003. Since then, he has served as CEO of a plastic
lumber company; as CFO & COO of a publicly held medical device company; interim COO
of a pet toys distributor; interim CFO of a linen manufacturer; and as a consultant, mentor
and business advisor to numerous other companies.
 Prior to co-founding NYC Advisors, Yoav was the CEO of Casa Mayo LLC, a direct marketing
organization he co-founded. Before that, he was the CFO/COO of a technology incubator,
where he led 10 investments and private placements from evaluation to closing, advised
CEOs of portfolio companies on financial and operational issues, and served as the
Chairman of the Board of a publicly held software company, leading a successful
turnaround.
 Prior to that, Yoav was the CFO of several publicly held companies, and he spent over 8
years as a controller at Citibank and Bankers Trust.
 Yoav is a partner and a board member at Stark Business Solutions, Inc., and a mentor and
Advisory Committee member at Baruch College Executive on Campus Program.
 Yoav holds a BBA and MBA in Finance from Baruch College In New York

10. STRATEGIC TURNAROUND AND BUSINESS ADVISORY SERVICES
THANK YOU!