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High level overview of Harvest Business Advisors.
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Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 1
A Growth Strategy
Management Consulting Firm
Overview
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 2
Overview
A Growth Strategy Management Consulting Firm working with
privately-held companies to maximize their growth potential.
Technology Healthcare Information
Services
We help clients develop or rebuild their business strategies, and then execute.
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 3
The Partners
Fortune 500 executives and entrepreneurs who have grown companies of various
sizes. As consultants we have worked with companies of all sizes. As a strategy
firm, what sets us apart is that we also roll up our sleeves and help execute our
recommendations.
Our clients get realistic and actionable advice
David
Karabinos
Joe
Shelley
Tony
Rushin
Dusty
Pritchett
Chris
Karabinos
Andy
Karabinos
ExperienceStrategy
Finance
Operations
Sales & Marketing
M&A
Executive Officer Leadership
Chief Executive
Chief Operating
Chief Financial
Chief Marketing
Chief Sales
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 4
Client Testimonials
“David and his team have been a tremendous value-add and compliment to our management team. As an early stage
company, our resources are constrained and we simply can’t employ all of the talent necessary to succeed. It has been
invaluable to have access to strategic talent at a fractional level, that can help us execute our plans.”
Chris Otto, CEO Halo Monitoring
“For several years now we have been working so closely with the Harvest team that we consider them a part of
PointClear. They have advised me and our management team on almost every critical strategic choice we have faced. I
am convinced that we would not have experienced the success we have without the help of Harvest.”
Blaine Anderson, CEO PointClear Solutions
”Harvest provided us with new insight on sales strategy and operations. Utilizing their services was a good business
decision for us since it gave us both an objective perspective, as well as viable direction. I felt that their contribution in
sales capability assessment and development was constructive, pragmatic and a very worthwhile investment.”
Preetha Pulusani, CEO DeepTarget
“Most of our business was concentrated into a few customers. We needed to understand what our strategic alternatives
were to diversify and grow. Harvest provided us with research and insight as to what our options could be, as well as the
investment and risk scenarios associated with each one. With their help we were given several viable growth strategy
alternatives to choose from, including product and market expansion.”
Randy Paries, COO UnitNet
“I have used the Harvest team to help me with strategy, tools to scale my business and fractional executive services to
help me execute and grow. Their ability to provide strategic advice and then help me execute on a tactical level is highly
valued.”
Gary Humphrey, CEO Technology Global Alliance
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved
5
Market Focus
C
Nashville
Client Concentration
Atlanta
Birmingham
Nashville
Huntsville
Clients in Other Markets
West Coast
Mid-West
Mid-Atlantic
5
Nashville
Huntsville
Birmingham
Atlanta
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 6
Practice Areas
Sales & MarketingSales
Sales Diagnosis & Capability Development
Customer Strategy
New Customer Acquisition
Account Growth & Management
Channel Partner Strategy & Development
Referral Marketing
Tailored Sales Training
Marketing
Market Opportunity Assessment
Integrated Lead Generation Program
Competitive Assessment
Marketing Plan
Product Management
Brand Positioning
Value-based ROI Tools
Fractional Executive ServicesChief Executive Officer
Chief Financial Officer
Chief Operating Officer
Chief Sales Officer
Chief Marketing Officer
Chief Strategy Officer
StrategyOverall Strategic Development
Consideration of Strategic Alternatives
Portfolio Strategy
Capital Strategy and Acquisition Readiness
Merger, Acquisition, Divestiture
Exit Strategies
FinanceFinancial Evaluation & Industry Benchmark Comparison
Financial Planning and Budgeting
Cash Flow Analysis and Forecasting
EBITDA Maximization
Capital Structure Analysis
Investor Presentation and Offering Development
OperationsBusiness Process Optimization
Outsourcing Strategy & Implementation
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 7
Approach
We scope and deliver projects to avoid lengthy and costly initiatives with unclear results. Our clients have both
strategic and tactical challenges. Either way, our approach is the same. We Listen, Discover, Assess, Advise and
Implement.
Listen - Listening to our clients and their stakeholders is the critical first step to ensure Harvest understands the problem,
scope, and timeline in which the problem needs to be solved and management’s level of desire to solve it.
Discover - The scope of the project dictates how much, and type of, data gathering is actually needed. A comprehensive
engagement requires a market opportunity scan, a competitive scan, collecting information on internal operations including
financials, product development plans, marketing & sales operations as well as administrative operations.
Assess - Once the necessary information is gathered to identify potential solutions, we populate our proprietary analytics
models to develop an assessment. We do this for each area within scope, whether it is an acquisition, product expansion,
revenue expansion project, risk analysis, marketing program, outsourcing project or whatever. An evaluation of each
alternative is made for each potential solution to support the eventual recommendation.
Advise – After thinking through the issues, landscape and solution alternatives, we’ll recommend a course of action we feel
best addresses your objectives. We’ll tell you what we would do if we were in your shoes and risking our own reputations and
shareholder value. Pros and cons of each alternative will be presented so that you can validate the advice.
Implement – Harvest advisors are not only consultants. We come from industry where we have had strategic, operational,
financial and budgetary responsibilities. We have experience successfully implementing critical business initiatives and will
assist you in implementing yours if requested.
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 8
Practice Areas
Strategy
David Karabinos David.Karabinos@harvestbusinessadvisors.com
Finance
Dusty Pritchett Dusty.Pritchett@harvestbusinessadvisors.com
Sales & Marketing
Chris Karabinos Chris.Karabinos@harvestbusinessadvisors.com
Fractional Executive Services
Tony Rushin Tony.Rushin@harvestbusinessadvisors.com
Contact Us
(877) 418-4306
Industry Managing Partners
Technology
David Karabinos David.Karabinos@harvestbusinessadvisors.com
Health Care
Andy Karabinos Andy.Karabinos@harvestbusinessadvisors.com
Information Services
Joe Shelley Joe.Shelley@harvestbusinessadvisors.com
Business & Partnership DevelopmentTony Rushin
Tony.Rushin@harvestbusinessadvisors.com
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 9
Samples
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 10
Sample Engagement Descriptions
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved
Sample Deliverable
11
Financial Evaluation & Benchmark
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 12
Sample Deliverables
Strategic Alternatives (1)
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 13
Sample Deliverables
Strategic Alternatives (2)
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 14
Sample Deliverables
Company: XYZ
Investment: 1,000,000$
Percent purchased by investors 20.00%
Calculated Pre-money Valuation 4,000,000$
Function of 4TH Yr EBITDA Function of 4TH Yr Revenues
Original investment 1,000,000$ 1,000,000$
Purchased 20.00% Negotiated 20.00%
3rd year Ebidta/Revenue amount 2,000,000$ 10,000,000$ 20%
Assumed value multiple 8 Assumption 3 Assumption
Company sales price 16,000,000$ 30,000,000$
Sales cost 4% (640,000) 4% (1,200,000)
Net sales proceeds 15,360,000$ 28,800,000$
Proceeds to this round investors 3,072,000 5,760,000
Liquidation Preference 0 - -
Total to Investors 3,072,000 5,760,000
Years 4 To liquidity 4
Annual Rate of Return 32% 55%
Times Investment Return 3.07 5.76
Equity Capital Acquisition - Investor ROI Model
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 15
Sample Deliverables
Investor/Shareholder Exit Scenarios Model
XYZ Capitalization
AFTER INITIAL OFFERING Unvested Outstanding
Vested Options Warrants Shares O-Ship
A 353,295 20.07% - 353,295 706,590 26.84%
B 309,768 17.60% - 309,768 619,536 23.54%
C 74,108 4.21% - 74,108 148,216 5.63%
D 64,108 3.64% - 60,000 124,108 4.72%
E 54,108 3.07% - 50,000 104,108 3.96%
F 27,054 1.54% - 25,000 52,054 1.98%
All Others 717,559 40.77% - - 717,559 27.26%
Option Pool 160,000 9.09% 160,000 - 160,000 6.08%
Totals 1,760,000 100.00% 160,000 872,171 2,632,171 100.00%
AFTER SECONDARY OFFERING % Dilution
Post-Money
Value 2011 2013 2015
A 353,295 - 353,295 706,590 20.88% -22.22% 9,395,533$ 15,659,221$ 23,488,832$ 39,148,053$
B 309,768 - 309,768 619,536 18.31% -22.22% 8,237,975$ 13,729,958$ 20,594,938$ 34,324,896$
C 74,108 - 74,108 148,216 4.38% -22.22% 1,970,829$ 3,284,716$ 4,927,073$ 8,211,789$
D 64,108 - 60,000 124,108 3.67% -22.22% 1,650,265$ 2,750,442$ 4,125,663$ 6,876,104$
E 54,108 - 50,000 104,108 3.08% -22.22% 1,384,325$ 2,307,208$ 3,460,812$ 5,768,020$
F 27,054 - 25,000 52,054 1.54% -22.22% 692,162$ 1,153,604$ 1,730,406$ 2,884,010$
All Others 717,559 - - 717,559 21.20% -22.22% 9,541,388$ 15,902,313$ 23,853,469$ 39,755,782$
Option Pool 160,000 160,000 - 160,000 4.73% -22.22% 2,127,521$ 3,545,869$ 5,318,803$ 8,864,672$
Second Round Investors 752,049 - - 752,049 22.22% 10,000,001$ 16,666,669$ 25,000,004$ 41,666,673$
Totals 2,512,049 160,000 872,171 3,384,220 100.00% 45,000,000$ 75,000,000$ 112,500,000$ 187,500,000$
Year 2011 2013 2015
Value multiple from today 2 3 5
Fully Diluted
Exit Scenarios
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 16
Sample Deliverables
Sales Diagnosis: Early Key Findings
Process Rating
(1-10)
Comment
Demand Creation (Marketing /
Lead Generation)
4 OK at times but inconsistent. Strategy & processes are not well-
defined and operational.
Existing Customer Expansion
(upselling current customers)
2 Just reorganized to have CSRs focus here; concern that they may be
stretched too thin plus they don’t have sales skills.
Proposal Generation 4 Headed in the right direction; heroic efforts in the past. Technology
could be used more to improve efficiency.
Selling 3 CEO is over utilized; this is not sustainable with growth. There is a
high variability of skills among RSMs.
Territory Management 3 2 empty territories; many RSMs do not reside in their territory.
Opportunity Management 3 Use of ACT! is low; technical issues (is ACT! the right / best tool for a
$30M company). Need crisp hand-offs from CSR to RSM.
Targeted, Defined Solutions NA NA = Not Assessed. Out of scope.
Target Market Knowledge 5 More regional understanding / penetration is needed. Inconsistent
knowledge across RSMs.
Prospect & Customer Knowledge 2 Online prospect & customer relationship management not currently in
place. “A” prospects not explicitly defined & profiled.
Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 17
A Growth Strategy
Management Consulting Firm
Overview
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