[Company]Growth Strategy
Final PresentationMonth DD, YYYY
Contents• Project scope and work plan• Lay of the Land analysis• Core and Adjacent Markets analysis• New Product and Service Opportunity
Brainstorming output• New Product and Service Opportunity analysis• Recommended Next Steps
Page 2
Overall Work Plan - Original
Page 3
Timing Month 1 Month 2 Month 3 Month 4
Module Lay of the Land Analysis Core Markets Analysis New Product and Service Opportunity Brainstorming
New Product and Service Opportunity Analysis
Goal Analysis of the company’s
professional services business as follows
Analysis of the core and adjacent markets of the
professional services division
Lead and contribute to three different brainstorming
sessions
Analysis of the overall opportunity characteristics of each of the top ten most
promising opportunities
Activities
• Company interviews:– Core capabilities– Growth constraints– Market presence in
each core market of ________ services and ________
– Product and service bundle
• Core capability analysis:– Expert interviews– Customer interviews– Capability
benchmarking
• Market analysis – detailed market analysis that includes the size, segments and locations of ______ services firm in the U.S.
• Competitor analysis:– Strategic positioning
overview– Competitive landscape
summary– Competitor profiles
• Customer Profile analysis– Customer overview– Expert interviews– Key customer profiles and
segments– Trends
• Adjacent market analysis:– ________: ______, _______,
and _______– ________: ______, _______,
and _______
• Employee brainstorming session
• Management team brainstorming session
• Executive team brainstorming session
• Industry• Financial• Operational• Product/Service• Customer
Overall Work Plan - Revised
Page 4
Timing Month 1 Month 2 Month 3 Month 4
Module Lay of the Land Analysis Core Markets Analysis New Product and Service Opportunity Brainstorming
New Product and Service Opportunity Analysis
Goal Analysis of the company’s
professional services business as follows
Analysis of the core and adjacent markets of the
professional services division
Lead and contribute to three different brainstorming
sessions
Analysis of the overall opportunity characteristics of each of the top ten most
promising opportunities
Activities
• Company interviews:– Core capabilities– Growth constraints– Market presence in
each core market of ________ services and ________
– Product and service bundle
• Core capability analysis:– Expert interviews– Customer interviews– Capability
benchmarking
• Market analysis – detailed market analysis that includes the size, segments and locations of ______ services firm in the U.S.
• Competitor analysis:– Strategic positioning
overview– Competitive landscape
summary– Competitor profiles
• Customer Profile analysis– Customer overview– Expert interviews– Key customer profiles and
segments– Trends
• Adjacent market analysis:– ________: ______, _______,
and _______– ________: ______, _______,
and _______
• Employee brainstorming session
• Management team brainstorming session
• Executive team brainstorming session
• Industry• Financial• Operational• Product/Service• Customer
Month 1
Month 2
Month 3
Month 4
Summary of Work Completed
• Lay of the Land Analysis:– 33 internal interviews with the company’s leaders and managers
• _________• _________• _________
– 44 subject matter expert interviews• 40 _______________• 4 analysts and investment bankers
– 20 market interviews– Financial analysis of ____________
• Core Markets Analysis:– Analyzed the ___________ market– Analyzed the ___________ market– Analyzed the ___________ market– Prepared competitor profiles of the big three _________ firms
• New Product and Service Opportunity Brainstorming– Created opportunity template– Cataloging underway for several add-on product and service ideas
• New Product and Service Opportunity Analysis– Developed potential growth paradigm– Created opportunity screening process– Analyzed all __________ areas– Surveyed 40 __________– Prioritized the top 10 opportunities with the steering committee– Analyzed the top 10 opportunities
• Recommended Next Steps – Outlined the recommended next steps
Page 5
Contents• Project scope and work plan• Lay of the Land analysis• Core and Adjacent Markets analysis• New Product and Service Opportunity
Brainstorming output• New Product and Service Opportunity analysis• Recommended Next Steps
Page 6
Core Capabilities, Strengths and Weaknesses
CapabilityBoard/C-Level
ExecsCorp. Mgmt
TeamDivision Mgmt
Team
ability to execute deals
Ability to integrate deals
Ability to grow organically
Ability to grow via product line extensions with add-on servicesAbility to leverage technology operationally
Deep industry expertise
Culture of making plan and managing expensesCulture of excellence and mission accomplishment
Culture of cross-training and team-building
Culture of standing behind our work
Culture of continuous process improvement
Excellent customer relationships
Page 7
Source: Internal interviews
Strong on Doing Deals, But Integration of Deals Appears
Weaker• Ability to execute deals
– “The CEO is a deal guy, it’s in his DNA” – Corp. mgmt team
– “The company is really, really good at executing deals” – Board member
– “When a company meets with the CEO and he walks in the room, it’s a done deal – he is just so impressive” – Division mgmt team
• Ability to integrate deals– “We are really staffed too lean to integrate properly. We
should be better at planning the integrations instead of trying to figure them out as we go.” – Corp. mgmt team
– “There wasn’t a lot of consistent communication after the deal. There also was not a unified marketing strategy. In fact all communication needs to be better. We need to feel like we are part of the team.” – Division mgmt team that was acquired
Page 8
Source: Internal interviews
Widely Felt that Organic Growth Needs More
Attention• “As a company we are deal focused, not sales focused. We need
to study and understand the sales process for each business unit.” – Corp. mgmt team
• “It’s hard for us to grow organically because of the two hats our partners wear. We need a better process.” – Corp. mgmt team
• “We need to have better compensation programs that insure our professionals are focusing on sales” – Division mgmt team
• “Our sales effort is done by ________, who do not necessarily have the sales skills necessary” – Division mgmt team
• “[Our customers] really want to talk to ___________ in terms of when we sell” Corp c-level exec
• “I’m not sure we should worry about organic growth because acquisition growth has almost always been cheaper, but we need to analyze that for new segments we enter.” – Board member
Page 9
Source: Internal interviews
Widely Felt that Product Development Needs More
Attention• “I waste a lot of time on little marketing issues. I wish I
had someone that could develop more of my ideas for me” – Division mgmt team
• “We really don’t have any way of knowing what our other division is offering” – Division mgmt team
• “I was talking to someone at the other division and I had no idea of all of the additional services they were offering that we should be offering here in our division” – Division mgmt team
• “We don’t really have a sales tool kit at all in terms of demos or brochures” – Division mgmt team
• “Website? I’m not sure if we have a branded website or not. I’ll have to check on that” – Division mgmt team
Page 10
Source: Internal interviews
Using IT to Automate Process Management is a Key Strength
• “The company is very, very good at taking manual processing and automating away the cost” – Board member
• “We give the customer high touch on the front-end and the back-end of our ____________ process and have highly automated everything in between – Corp c-level exec
• “We carefully map out a process first and then we take automated code development software that we’ve developed and create an automatic process that is directly linked to the process map” – Division mgmt team
• “Our business analysts work closely with our line managers to determine what improvements to make” - Division mgmt team
Page 11
Source: Internal interviews
Deep Subject Matter Expertise Gives the Benefit of the
Experience Curve• ______ hires many industry insiders
from the _________ customers• Both ____ and ____ have high staff
loyalty and low turnover• Employee expertise and longevity
are both key to the high margins [Company] enjoys due to the “Experience Curve” impact– A 40% decrease in cost for every doubling
of cumulative output– Effect holds true for manufacturing and
services companies– Does not “kick in” if an organization has
high employee turnover – employees are not able to apply the appropriate level of “learning”
– The Unit Cost is value-added cost adjusted for inflation and does not include materials cost
– The Experience Curve is inclusive of both the Learning Curve observed in labor-intensive companies and the impact of increases in quantity observed in process-related companies
Page 12
Source: Internal interviews
Unit Cost (logarithmic scale)
Cumulative
Output
$1
$10
$100
- 10,000 20,000 30,000 40,000 50,000 60,000 70,000
[Division] Culture is a Unique Strength…
• Wide-held conviction that [Division] is absolutely the best in the business– “We are better and faster than anyone else”– “We are by far the best at what we do”
• Sharp focus on customer satisfaction– “If the customer says the sky is purple, then it is purple”– “We will do whatever it takes to make it right, even if we have
to write a big check – we stand behind our work”• Excellent grasp of expense management
– “I really watch my overtime expenses”• Good understanding of process management,
process improvement and process automation– “We manufacture __________ widgets”– “We write code to automate what we do”
Page 13
Source: Internal interviews
…But is Somewhat Disconnected Across Offices…
• Lack of a big picture view and vision of how the parts of [Division] fit together– “We don’t talk much to the other offices”– “I’d love to go help out our smaller offices, but not sure
how I could do that”– “I heard that down in [other division] they offer services
that we don’t here in our division”• A sense that full integration is a long way off– “I’ve only met a few others from other offices, we don’t
get much of a chance to talk, much less figure out how to work together”
– “There are a lot of things we could centralize in one location or another, but I’m not sure that anyone is looking at that”
Page 14
Source: Internal interviews
…and Has Some Unique Limiting Aspects
• Difficulty of ______in managing the responsibilities, loyalties and value tradeoffs of both the _____ firm and [Division]
• Lack of clear boundaries between ____ firm and [Division] and even employee awareness of boundaries
• Narrow focus of only one state for each major platform
Page 15
Leads to “structural”growth constraints
Source: Internal interviews
[Division] Revenue is Fairly Flat, Only TX and CA Have Organic Growth…
Page 16
Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 $-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
NDeX - MINDeX - INNDeX - MNNDeX - TXNDeX - CANDeX - GANDeX - NV
Avg Quarterly Rev*
Most RecentQtr Rev
Variance to Most Recent
Qtr[Division] - MI 10,171,595 8,931,925 (1,239,670)[Division] - IN 3,129,081 2,120,597 (1,008,484)[Division] - MN 1,373,945 1,335,758 (38,187)[Division] - TX 15,770,246 17,086,931 1,316,686 [Division] - CA 6,405,796 6,306,416 (99,379)[Division] - GA 168,299 159,131 (9,168)[Division] - NV N/A N/A N/ATotal Revenue 37,018,961 35,948,359 (1,078,203)
Revenue
Source: [Company] Data and Venture Advance analysis
* First quarterly results not used due to partial quarterly results that skews the average
Q3-
06Q
4-06
Q1-
07Q
2-07
Q3-
07Q
4-07
Q1-
08Q
2-08
Q3-
08Q
4-08
Q1-
09Q
2-09
Q3-
09
$- $5,000,000
$10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000
NDeX - NVNDeX - GANDeX - CANDeX - TXNDeX - MNNDeX - INNDeX - MI
…and [Division] PAEBITDA is Down
Page 17
Avg Quarterly PAEBITDA*
Most RecentQtr PAEBITDA
Variance to Most Recent
Qtr[Division] - MI 4,609,632 3,023,814 (1,585,817)[Division] - IN 638,345 (476,519) (1,114,864)[Division] - MN 620,977
528,107 (92,871)
[Division] - TX
4,687,144 5,844,484 1,157,340
[Division] - CA 3,787,206 3,710,398 (76,808)[Division] - GA 89,450 72,964 (16,486)[Division] - NV N/A N/A N/ATotal PAEBITDA 14,432,753 12,710,848 (1,729,506)
Source: [Company] Data and Venture Advance analysis
* First quarterly results not used due to partial quarterly results that skews the average
Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 $(1,000,000)
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
NDeX - MINDeX - INNDeX - MNNDeX - TXNDeX - CANDeX - GANDeX - NV
PAEBITDA
Avg Quarterly PAEBITDA*
Most RecentQtr PAEBITDA
Variance to Most Recent
Qtr[Division] - MI 45% 34% -11%[Division] - IN 19% -22% -41%[Division] - MN 45% 40% -6%[Division] - TX 29% 34% 5%[Division] - CA 58% 59% 0%[Division] - GA 48% 46% -2%[Division] - NV N/A N/A N/ATotal PAEBITDA 41% 32% -9%
Board and Executive Level View of Growth Constraints
• “We do not fully understand our adjacent market opportunities”
• “Capital”• “We are very good at running
branches, but we have not yet proven the ability to run a separate SBU”
• “We are not proven on operations outside of the U.S.”
• “The management model in each of our businesses is very unique”
Page 18
Source: Internal interviews
Line Manager’s View of Growth Constraints
• Insufficient IT resources to extend IT platform capability– __________ changes distractions– Integration of new acquisitions distractions– Lack of high-quality Business Analysts– Lack of line managers that understand business process
redesign– Lack of a clear IT roadmap that clarifies and prioritizes IT
projects• Insufficient product/service development resources
– Lack staff that is focused on creating this capability– Lack leadership focus on growing in this manner
• Loss of speed and flexibility– Sense that they cannot easily hire staff and do what is necessary
to take on new opportunities
Page 19
Source: Internal interviews
Other Items That Came Out of the Interviews
• Desire to better understand the big picture– How do I and the division I work for fit in with the big picture?– Why did we do the ________ acquisition?– Why didn’t we hear about the acquisition before it was publically
announced?– Why didn’t we get a message explaining the rationale for the deal?
• Some frustration with a large company bureaucracy; frustration is deeper at lower levels– We used to be a family company that could move fast, but now we are not
as nimble and quick to meet customer requirements– We used to be able to staff up for a big customer opportunity/need, but now
it takes so long to get a new hire approved• Some frustration with the disproportionate attention spent on
the Business Information division vs. other business divisions in the company communications and newsletter
Page 20
Recommend more frequent internal communications regarding all business divisions as well as the overall vision of
the companySource: Internal interviews
Investment Banking and Analyst View of the Market
• There are unique opportunities to help customers leverage their time and work product with automated process platforms
• Areas of _______ services is viewed by some as more attractive than __________ services
• Providers need focus their efforts on who they serve and their service platform
• Market segments have significantly different growth and profitability
• Acquire a software company to expand earnings multiples
Page 21
Source: Investment banker and analyst interviews
Unique Opportunities To Help Customers Leverage Their Time
and Work Product“While the big three are focused on growing their current content in the __________ services and compliance management, I think there is a unique opportunity due to a big sea change in the __________ services space. In the past, there was no incentive for customers to get work product done quickly. But the industry is changing to flat rates and other alternative fee arrangements. This means customers are looking for ways to leverage projects and get better access to material. The winning formula is going to be to help customers generate work product a lot more efficiently.”
» ___________, ________& Co.
Page 22
Source: Investment banker and analyst interviews
Areas of _______ Services Viewed by Some As More Attractive Than __________ Services
“I really like the ______ process. This segment is still growing nicely and has not been impacted by the economy because ______ is non-cyclical. This segment is more conducive to workflows and process orientation and software-enabled embedded content where you can inject expertise. It is a repeatable process in that Federal taxes are the same for everyone. Of course there are state differences at the state level, but still lots of leverage within a state. _________ [process] does not have this favorability.”
» ___________, _______
Page 23
Source: Investment banker and analyst interviews
Providers Need to Focus On Who They Serve and Their Service Platform
“There are a couple of key strategic areas that providers in the industry need to determine:– Do they want to do business with the
__________ counsel at companies or with customers?
– Do they want to be a software company, workflow management company or an information management company?”
» ___________, ________& Co.
Page 24
Source: Investment banker and analyst interviews
Acquire a Software Company to Expand Earnings Multiple
• “[Company] should acquire a __________ software company. It would allow them to reposition themselves and get credit for the fact that they already have a lot of software embedded in their business model. One challenge is that they will likely pay a high multiple for a software company and it would be hard to explain. A software acquisition would be transformational for the company as opposed to merely incremental. It would help with their multiple expansion.”
» ___________, ________
Page 25
Increased leverage:
• Repeatability
• Scalability
• Process automation
Market Segments Have Significantly Different Growth and Profitability
Page 26
__________ Technology / Software
_________ Management
__________ Information
__________ Publishing
__________ Support Services
Document Mgmt Services
Growth
Profitability
Additional analysis is neededfurther quantify this perspective
Source: Investment banker and analyst interviews
The Strategy of the Big Three Appears Similar…
Company
• _____________
• _____________
• _____________
Offering
• Tools:– Information and
decision support tools
– Enterprise management software
– IP content, analytical and visualization tools
• Capability– Deep domain
expertise– Managing structured
and unstructured information
– Applying user context
– World-class technology
Page 27
Market Growth Focus
• Global / large communities
• Higher growth in developing countries
• Add additional content and capability to current platforms
Own the customer desktop:Surround the customer (or other professional) with everything they need and get stuck with a
mixed bag of products and services
…Whereas the [Company] Strategy is Clearly Differentiated
Collection of best of breed highly-focused, market-leading __________
support services with high customer touch and embedded expertise in a
process-managed IT-enabled platform
Page 28
Other Suggestions or Ideas That Arose During the Project
• Manage new product/service development pipeline to broaden service offering
• Manage sales pipeline to get, keep and grow customers organically
• Centralize and consolidate [Division] processing capability whenever possible
Page 29
Manage New Product/Service Development Pipeline to Broaden
Service Offering• Create/improve/manage a new product/service development
capability within each business division to create and test “bolt-on “ products and services– Map out a unique process for each division– Analyze the requirements, potential value added and key success factors for
each division– Create job descriptions of any new staff or additional duties for any current staff– Create the necessary control reports to insure proper focus and success – Create a product map by office within [Division] to insure full rollout of all
currently-offered products and services across all offices• Create capability that includes creating the sales and marketing
kit for each new bolt-on product or service introduction– Identify the resource requirements for the business development staff in terms
of sales and marketing collateral– Map out a unique process for each division on the development and
maintenance of the sales and marketing collateral, including any key vendors and other resources
Page 30
Manage Sales Pipeline to Get, Keep and Grow Customers Organically
• Build and manage three sales-related pipelines in each business division: – A sales pipeline of new customer targets– Across-sell opportunity pipeline with current customers– A branch office expansion pipeline to grow branches if possible
• Create/improve/manage an overall sales pipeline management capability– Map out a unique process for each pipeline for each division– Analyze the requirements, potential value added and key success factors for each
division– Create job descriptions of any new staff or additional duties for any current staff– Create the necessary control reports to insure proper focus and success
• Create and manage an account management process to retain current customers– Map out a unique process for each division– Analyze the requirements, potential value added and key success factors for each
division– Create job descriptions of any new staff or additional duties for any current staff– Create the necessary control reports to insure proper focus and success
Page 31
Centralize and Consolidate [Division] Processing Capability
Whenever Possible• Many processes that lend themselves to centralization
are done in each of the various [Division] office locations
• Centralization and consolidation should lead to additional process stability, process quality and lower process cost
• Analyze the various [Division] processes to determine the target processes for centralization and consolidation
• Analyze the various [Division] office operations to determine the best location for each process to be located
• Create a roadmap for the process centralization and consolidation within the overall IT and Process Improvement priority list
Page 32
Key factor
Scale intensive
Face-to-face interaction required/desired
Control requirements
Repeatability
Statistical variation at a local level
Expertise availability
Centralize
High
Low
High
High
High
Low
Decentralize
Low
High
Low
Low
Low
High
Potential Framework for Thinking About Process Centralization
Page 33
Contents• Project scope and work plan• Lay of the Land analysis• Core and Adjacent Markets analysis• New Product and Service Opportunity
Brainstorming output• New Product and Service Opportunity analysis• Recommended Next Steps
Page 34
[Competitor] Profile
Page 35
__________ Services Product Line Strengths
Perceived Strategy for __________ Services Weaknesses
Source: Expert interviews
[Competitor] Profile
Page 36
__________ Services Product Line Strengths
Perceived Strategy for __________ Services Weaknesses
Source: Expert interviews
[Competitor] Profile
Page 37
__________ Services Product Line Strengths
Perceived Strategy for __________ Services Weaknesses
Source: Expert interviews
Top __________ Process Outsourcers
Page 38
Rank Company Name 123456789
1011121314151617181920
Rank Company Name 123456789
1011121314151617181920
Rank Company Name 123456789
1011121314151617181920
2009 Top 20 __________ Administrative Support Services Outsourcers
2009 Top 20 Core __________ Services Outsourcing
2009 Top 20 Document Process Outsourcing Vendors
Source: http://www.theblackbookofoutsourcing.com/
71% of ____Firms Offshore __________ Services and 39% Offshore in Excess of
$50k per Year
Page 39
Source: Survey of 51 customers; __________ Process Outsourcing blog (http://__________lyours.blogspot.com/)
29%
18%14%10%
6%
24%
Do not use legal offshoring< $25k$25k - $50k$50k - $250k$250k - $1M> $1M
_______________ Market Summary
• Overall market:– Very large market dominated by a handful of large customers in
a handful of states, processed by a handful of processors– Market trends tend to be negative, but core market looks
strong– Pricing fixed by reimbursement levels make it difficult to gain a
price premium and difficult to get customers to pay for additional services
• [Division] market positioning– Appears to be very strong, but more analysis is required to
properly position the division– Large size positions [Division] well to react quickly to large
customer needs and swings in the business
Page 40
Top Ten __________as of Q2-2009
Page 41
• Source: National _______ News, “Quarterly Data Report Q2-2009; Venture Advance analysis and estimates
Dst 9
Dst 5:
Dst 10:
Dst 8:
Dst 7: Dst 6:
Dst 11:
Dst 4:
Dst 3:
Dst 2:
Dst 1:
Rank Organization NameTotal # _____
Q2-2009% US
Market______Rate
Est. 2009_____
______ Revenue @ $550/each
1 13.8m 20.9% 2.7% 378k $208m
2 12.2m 18.1% 1.9% 235k $129m
3 10.1m 14.6% 3.8% 382k $210m
4 5.4m 7.8% 1.5% 81k $44m
5 2.7m 3.9% 1.5% 40k $22m
6 1.1m 1.8% 2.3% 26k $14m
7 1.1m 1.7% 1.5% 18k $10m
8 1.0m 1.7% 4.9% 48k $27m
9 1.0m 1.5% 1.5% 14k $8m
10 0.6m 1.4% 1.5% 10k $5m
Total 49.1m 73% 2.5% 1,232k$678m
________by Top _____ in Top-Ranked States (2008 Data)
Page 42
•Source: (1_________; (2, 3) Est. based on ___________
1 2 3
Rank State Total _____1 Top _____2_____ Share of
State3
1 California 823,000 18.7%2 Florida 489,000 37.8%3 Arizona 152,000 28.2%4 Ohio 141,000 47.7%5 Michigan 138,000 42.8%6 Nevada 123,000 36.2%7 Texas 120,000 21.0%8 Georgia 114,000 36.0%9 Illinois 113,000 37.6%10 New Jersey 67,000 46.5%11 Colorado 66,000 35.2%12 Virginia 64,000 40.9%13 Indiana 58,000 37.2%
The ________ Industry is Highly Concentrated…
Page 43
0 10 20 30 40 50 60 70 80 90 1000.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%Cumulative % Market Share
# of __________
The largest 10 ______ account for 73.5% of the market
Bank of America
Wells Fargo
Chase
Citi
GMAC
National City
US Bank
SunTrust
OneWest
PHH
Source: ________________
____________ by State: 3.1m Total ________ (2008 Data)
Page 44
32k
24k11k
1k
823k18k
1k
123k
152k
66k
120k
58k
113k
138k7k
52k
25k67k
3k
8k1k
55k
42k141k
64k
49k
114k
489k
1k
1k
6k
24k
39
23k
2k8k
16k
3k
15k
8k
3k
4k41k
16k
1k
8k
9k5k
• Source: ____________________ Current markets are indicted with an outline
Highest number of filings
Moderate number of filings
Lowest number of filings
Trends that May Impact the Core Business: [Division]
Trend Potential Impact Indicator
Customers using analytics and scorecards as their primary processor allocation decision as opposed to processor relationships
• Implies a need to focus more attention upon the scorecards and rely less upon our existing relationships
• Increased dependence upon the third-party provider platform companies such as ______ due to their increasing influence
Increased power of 3rd party intermediaries such as ______
• Lose control of the primary provider relationship and servicer decision-making
• Threat of the 3rd party backwards integrating into _____ services
Continued government interference and regulation changes
• Lower ______ rates• Longer potential hold times of ____ and more
potential cost to process ______• Increased need for IT platform “tweaks” to bring
the company into conformance with the most recent laws and rules reduces IT focus on the core process improvements
• Increase need for process and rules changesContinued ______ boom anticipated for the next year or two
• Continued growth in revenue and earnings
The slow down of ________ as the market recovers
• Lower revenue and earnings• Lower-cost acquisitions Page 45
_________ Services Market Summary
• Overall market - Very small “niche” market with significant market threats of simplification and automation
• __________ positioning:– A necessarily narrow focus:
• ________• __________• __________
– High market share in current markets with some new market growth opportunity– Premium priced
• Growth opportunities:– Tuck-under acquisitions – very limited– Organic growth – very limited, except for a few additional new markets– New product/service development – growth available– Process improvement and IT development – growth available– Note: management team states that growth trends lag the market by two years – could
bode ill for the next two years
Page 46
Key question: Is ___ a platform that [Company] wants to add new service platforms to or should it continue to
stand alone?
________ Market Interviews
• Methodology: Blind telephone survey of 20 appeals customers in all current states that ___ serves
• Respondent demographics:
Page 47
What is the size of your law firm?Very small (1 -
5 customers)Global (>500 customers)
Large (50 - 500
customers)
How long ago did you graduate from law school?
Less than 5 yearsOver
20 years
10 – 20 years
5 – 10 years
What percentage of your personal case load is spent
handling appeals?
51% - 75%
>75%
26% - 50%
<25%
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