AH Cunningham & Associates, LLC

Coaching, Teaching, Training, & Mentoring

Tomorrow’s Success Stories

OUR QUEST

CA is engaged as agents of change:

•To expedite the decision process

•To establish and encourage leadership.

•To demand accountability

•To expect results

Increasing Shareholder Value & Net Worth

WHO WE ARE

• 25 Year Old Regional Firm

• Family business Oriented

• 3 Divisions • Marketing, Research, & Sales

• Business Consulting

– Analysis

– Projects

• Mergers & Acquisitions

WHAT YOU GET

• S.W.O.T.

• Effect of Problems to the Client

• Cost in Lost Profitability

• Correction Required

• Self fix and/or Outside Help

• Investment to get Outside Help

• Additional Bottom Line Profit Opportunity

BENEFITS OF PMC ANALYSIS

• Objective Assessment of your Company

• Quantitative and Qualitative Review

• Impact on your Profitability is Measured

• A Pathway to Improved Performance

• Cost/Benefit based Recommendations

HOW WE WORK

• Not Magicians: Actual Facts

• Not off the Shelf: Client Specific

• Bonded: $50,000 per employee

• Analysis Length: 4 to 5 Days

WHAT WE DO

• Strategic Planning

• Organizational Development

• Profit and Expense Control

STRATEGIC PLANNING

• Where you are; Where you want to go; How

you are going to get there!

• Establish Benchmarks and Timelines

• Three Month Intervals for Eighteen Months

ORGANIZATIONAL DEVELOPMENT

• Executive Assessment & Coaching

• Developing Multiple Management Tiers

• Decision Making & Problem Resolution

• Maximizing Efficiency & Productivity

– Delegation & Empowerment

– Constructive Communication

– Training, Motivation, Incentives

PROFIT & EXPENSE CONTROLS

• Cash Flow Management & Forecasting

• Budgeting and Job Costing

• Systems and Procedures Analysis

• Breakeven & Margin Analysis

• Inventory and Cost Controls

• Profit Planning

S.C.O.P.E. Each project undertaken by our Consulting Division involves evaluation, modification, and generation

of systems, controls, organizational structure, and procedures to provide information and results for

evaluation by management.

Systems

CA custom designs operating systems to maximize profit and efficiency.

Controls

CA implements proven controls to monitor and evaluate performance and force profit.

Organization

CA streamlines the client's organization to best affect cost-effective delivery of the

product or service while managing internal information systems.

Procedures

CA will develop custom procedures and policies to insure smooth applications of

systems necessary to effect results.

Evaluation

These systems, controls, organizational structures, procedures and policies will provide

management the necessary information to manage profitability. Quality management, not

quantity. Finger tip reporting and informed decision making.

SEVEN KEY COMPONENTSTO A GOOD SALE

1) Know WHO

the client is;

2) What does the client WANT

only three things a person wants

- quality of life/salvation

- security = cash flow/profits

- - satisfy ego

3) Establish FOCUS

agreement to problems and concerns to be

quantified and qualified

4) Establish CREDIBILITY

Credentials, experience, recomendations

5) Establish CONTROL

End results by design not default

6) Establish URGENCY

encouraged to take action

7) While continually CONDITIONING

sell the result, not the process

TECHNIQUE FOR ANSWERING OBJECTIONS:

R-Q-C-Q-C-C One of the main characteristics of a strong sales process is the ability to overcome objections and close sales. The R-

Q-C-Q-C-C method is practical, effective and not high pressure. Whenever you hear any objections, this method can be

applied as a tried and true Good Sale Process:

RELAX

First, when a prospect objects, you must relax.

QUESTION

Pause, then say I am not quite sure exactly what you mean. Could you explain a little bit more about (give objection

back to prospect in their own words).

CONCEDE

After listening to his explanation, say, “That‟s a good point. I understand exactly how you FEEL. Many of my clients

FELT exactly the same way until they FOUND...” Listening builds trust.

QUALIFY

Other than the fact that (objection), there is nothing else that‟s stopping us from doing business today. Is that right?

CAPITALIZE & CLOSE

Pull the appropriate tool from your tool kit and close him or her.

OUR CLIENT MAKE-UP BY # OF EMPLOYEES

6

3438

14

52

1-10 11-20 21-50 51-100 101-150 151+

Full-Time Employees

OUR TARGET MARKET

SALES REVENUE

7

2628

24

12

3

0

5

10

15

20

25

30

$0-$3 $3-$5 $5-$10 $10-$25 $25-$50 $50-$100+

In Millions of dollars

% o

f fi

rm

sOUR TARGET MARKET

11 Other Services

7 Agriculture & Forestry

11 Transportation & Warehousing

21 Construction & Trades

19 Manufacturing

22 Wholesale Distribution

6 Health Care

3 Mining & Oil & Gas Extraction

OUR TARGET MARKET

Primary Business

0 5 10 15 20 25

Other Services

Agriculture & Forestry

Transportation & Warehousing

Construction & Trades

Manufacturing

Wholesale Distribution

Health Care

Mining & Oil & Gas Extraction

% of Firms

EXISTENCE OF WRITTEN BUSINESS

AND STRATEGIC PLANS

40

22

0 10 20 30 40 50

Written

Business

Plan

Written

Strategic Plan

% of Firms

PROSPECT PROFILE

HOW DEPENDENT IS THE BUSINESS ON

THE OWNER?

15

19

31

44

0

5

10

15

20

25

30

35

40

45

50

1 (not at all) 2 3 4 5 (very)

% o

f F

irm

s

PROSPECT PROFILE

HOW MANY GENERATIONS OWN A

FAMILY BUSINESS

66

26

62

0

10

20

30

40

50

60

70

one two three four or more

# of generations

# o

f F

irm

s

PROSPECT PROFILE

“HOT BUTTONS”

Hot buttons are personal or business issues that are so important to you that they evoke an emotional

response. Identifying your hot buttons, and focusing n them will help you develop a focus for your ongoing

strategic planning process.

To find your hot buttons you need to ask questions. The more questions you ask, the more likely you will

expose weakness and identify strengths. By asking probing questions you not only uncover the hot

buttons, but you get the more involved. in a self-analysis as to opportunities and threats to your business.

Are you satisfied with......................?

What is your.........?

How do you control your...........?

When was the last time you had a quantitative study of

functionality performed?

What functions do you have to perform to be profitable?

• EXAMPLES OF „HOT BUTTONS‟

• Contractors

• What is your bid to award ratio?

• Are you getting the ones you should?

• How do you know if you are competitive?

• What is your bonding limit?

• How do you do your job costing?

• How do you control your job cost?

• How do you calculate your burden rate and overhead when bidding a job?

• What is your small tool expense?

• What is your variance between your bid and actual costs?

• How many job bids do you loose by a small %? How do you control productivity?

• Is every one of your employees producing a profit for you?--How much?

• How do you control performance of your personnel

Mergers & Acquisitions

Alex H. Cunningham

ESTIMATED VALUE OF THE BUSINESS

12

21

44

11

64 2

0

5

10

15

20

25

30

35

40

45

50

<$.5 $.5-$.9 $1-$4.9 $5-$9.9 $10-

$19.9

$20+ don't

know

In millions of dollars

% o

f Fir

ms

HOW MUCH ARE THEY WORTH?

Consulting Engagement Fee Schedule

M & A Transactions

CA is retained, in essence, as a consultant firm working for an assessment and market

development retainer fee of eighty-five hundred dollars, ($8,500.00) which is to be

credited against a success fee; plus expenses.

The Client will pay all expenses at cost, travel expenses are to be pre-authorized in

writing by the client. When, and if, the transaction is closed, the Client agrees to pay to

CA a success fee or commission equal to:

6% of the first million dollars of the gross amount of the transaction.

5% of the second million dollars of the gross amount of the transaction.

4% of the third million dollars of the gross amount of the transaction.

3% of the fourth million dollars of the gross amount of the transaction.

2% of all amounts thereafter.

Such fee shall be due and payable, in cash, at closing. For the purposes hereof,

"closing" is defined to mean the date on which stock or assets of the company are sold

or otherwise conveyed or transferred.

Consulting Engagement Fee Schedule

Valuations

The objective of the program is to provide shareholders and management with an

independent professional review of those assets and other elements that effect the

company's value. The company is given a present market place value and guidelines

to increase that value.

The program cost is dependant upon the time and consultant skill set requirements.

This is determined by client size, business type, multiple locations, diversification of

profit centers, and availability and accuracy of historical information. The fee starts

at $12,500.00, plus expenses, requires a minimum of 4 days on-site and takes a

minimum of 10 subsequent off site business days to complete the company

Consulting Engagement Fee Schedule

Senior Consultant $180.00 per hour

Specialist $225.00 per hour

Partner/Principal $300.00 per hour

Expenses & Invoicing

The invoices (at least one per week) will cover all fees as follows: (1) hourly

consulting fees ($180.00-$300.00) per man hour worked by each consultant

assigned to the project and/or the M&A/Valuation flat rate, (2) reasonable airfare,

ground transportation and lodging expenses incurred by the on-site consultants

(substantiated by receipts) and, (3) thirty dollars per diem per consultant when

traveling.