1. How to Accelerate Your Company’s Strategic Value And Why You Need to Do It Now! Presented By Joel Strom IMC “High Cost of Doing Nothing” Event

2. Larry

3. Gift to Case School of Engineering designed to foster student innovation and experiential learning opportunities Largest-ever donation of nearly $6 million from alumni Larry and Sally Sears to transform electrical engineering education 12 X EBITDA with an Extra Kicker !

4. Larry made it not just about EBITDA!

5. Larry Moved his Company from: A nice to have to A got to have!

6. Larry did it by accelerating his company’s Strategic Value

7. Larry waited to do it pre-sale It worked but what was his opportunity costs in the years prior to his awakening?

8. Wherever you are in your business or personal life cycle - Planning a liquidity event in the next 12 months Or Planning to grow your business for the next 12 years Now is the time to Accelerate Your Strategic Value

9. Strategic Value can affect the multiple Strategic Value can make it a “Got to Have”

10. Strategic Value Improves operating results and EBITDA It makes you more $

11. Strategic Value provides owner options

12. Strategic Value provides investment insurance

13. Focus on Accelerating STRATEGIC VALUE like your future depends on it –because it does

14. Factors of Strategic Value Finance Strategy Operations The Market

15. Finance Core Measure – Consistent and improving performance

16. Strategy Core Measure – Strength and/or uniqueness in products, markets, geography, processes, business model

17. Operations Core Measure – Sustainability

18. The Market Core Measure – Positioning and visibility

19. For Each Strategic Value Factor there are specific Strategic Value Components – SVC’s

20. Finance SVC’s Sales/profit/Margin/EBITDA Growth and consistency Trailing and projected trends

21. Finance SVC’s Tracking and reporting Real financial statements No co-mingling Appropriate ERP system Audit or review statements

22. Finance SVC’s Controls and measures Metrics established Monitoring systems in place “Take action” processes

23. Finance SVC’s Resources Appropriate financial personnel and management Relationships with appropriate outside service providers Attorney(s) CPA Bank Attorney(s)

24. Strategy SVC’s Brand Strong "owned" niche Market perception and recognition Strong value proposition Customer driven differentiators Level of innovation

25. Strategy SVC’s “You own it” Intellectual Property Product Operational processes Exclusivities/contracts Strategic advantages/differentiators

26. Strategy SVC’s Products/services/customers Longevity of product Future potential/backlog Scalability Customer concentration or diversification Defined business growth and product roadmaps

27. Operations SVC’s “Real" company practices Strength/utilization of competencies Common and shared vision Risk management process Utilizing operational metrics Operational monitoring processes

28. Operations SVC’s Management Appropriate management team Effective team and culture Management succession plan Trucks away from disaster Effective BD and sales processes Outside professional services/ advisory board

29. Operations SVC’s Ownership Owner's role Importance for future success Ability to operate without

30. The Market SVC’s Awareness Market input Positioning Visibility Balance

31. Step #1 Unbiased assessment of the company’s current SVC situation- Rule #1 - Don’t kid yourself

32. Step #2 Strategic Value Acceleration Roadmap Overall goals/vision Prioritize SVC’s Establish acceleration metrics Create implementation process Measure results Monitor the market

33. The SV Roadmap implementation process must become one of the owner’s primary responsibilities

34. Common Advice: Manage the business everyday like its for sale

35. My Advice: Manage the business everyday to make it A Got to Have

36. Common Statistic: 80% of Businesses are not ready for sale

37. Un-Common Statistic: Think how few are Got to Haves

38. Accelerate your Strategic Value and Make Your business a Got to Have Make more money now Create options for your future Protect your investment Make it about more than just EBITDA

39. How to Accelerate Your Company’s Strategic Value And Why You Need to Do It Now! Presented By Joel Strom www.cksadvisors.com 480-451-1223 6263 N Scottsdale Rd Suite 390 Scottsdale, AZ 85254