A program to increase profits, including a case study

1. ProfitMAX Program

2. Proposition Is the valuation of your business lower than you expected? Is the Balance Sheet impacting your ability to secure or increase financing from a bank? After all these years of building the business, are you realizing the profit levels you expected? Are Sales strong, but Cashflow tight?

3. Proposition 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 It’s not software There are no “magic bullets” It’s a series of tools, methodologies, processes and training that will improve the bottom line We call it “dressing up piggy for market”

4. Customizable Levels of Support Business Benchmark A thorough analysis of multiple, previous years financials Graphs, Reports and Industry Comparisons in a 30+ page document that is delivered by our team in a 2 hour presentation Trends, Issues and Recommendations for improvement identified Comprehensive enough to take to your bank

5. Customizable Levels of Support Goal Seeking 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 This is a face-to-face interaction with our team and with the tools. The models are created and customized to each client. The program includes opportunity to review and update the model on a regular basis (monthly or quarterly) to reflect the changes in the business

6. Customizable Levels of Support Management Training In addition to the Benchmark and Goal Seeking components, “upskilling” your team in proactive financial measures is available Profit Center (branches, regions, product lines etc) targets are determined and plans for improvement in each category identified A training program is designed for the Profit Center managers or financial staff Regular (monthly or quarterly) review of targets and progress for continuous improvement

7. Customizable Levels of Support Dashboard Dials 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.

8. Fixed and Success Fee Options Project Fee Each component is separately priced, so you can “mix and match” Retainer + Success Fee Alternatively, the development and management of all the components is handled by our team with a single, monthly fee plus bonuses for goal achievement 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”.

9. Case History Quarterly Revenue The economy had a dramatic downward impact on Sales from Q4 of 2008 until late Q3 of 2009 Transportation & Logistics business that has been in operation for over 15 years. The CEO has 30+ years experience in this industry Swiss Avenue Partners was engaged in Q3 2008 to increase the profitability in preparation for a proposed exit in late 2009, early 2010

10. Quarterly Revenue Today, Sales are higher than at any time in 2007, but still less than a $350,000 growth Revenue growth is modest

11. …but Profit growth is dramatic Net profit …and it exceeds16% in Q3 and Q4 ! EBIT grows during this same period by over 13%

12. …and a positive Valuation effect Net Valuation Improvement Market value For a Sale Price based on 2.5x EBITDA, the impact is dramatic A dramatic increase in the Market Value for a modest $300,000 growth in Sales ! $1,470,000 $1,085,000 $385,000

13. Other benefits Profit Center driven Each branch has clearly defined targets and the tools enable the CEO to work “on the business” Compensation plans for managers is now profit and not revenue based Management Structure improved Faster, better decisions by a team that is now able to anticipate change and make corrections in advance Responsibility to drive profits has been divested to a broader group, without compromise to financial controls Reduced Earn Out 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 The owners are currently entertaining an offer to purchase the company

15. What next? Contact Linas Jarasius T: (916) 934 0626 Email for more information E: Linas@SwissAvenuePartners.com Web Site www.SwissAvenuePartners.com