Harvest Business Advisors Overview

Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved 1

A Growth Strategy

Management Consulting Firm

Overview


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.


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


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


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


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.


Practice Areas

Strategy

David Karabinos [email protected]

Finance

Dusty Pritchett [email protected]

Sales & Marketing

Chris Karabinos [email protected]

Fractional Executive Services

Tony Rushin [email protected]

Contact Us

(877) 418-4306

Industry Managing Partners

Technology

David Karabinos [email protected]

Health Care

Andy Karabinos [email protected]

Information Services

Joe Shelley [email protected]

Business & Partnership DevelopmentTony Rushin

[email protected]

mailto:[email protected]









Samples


Sample Engagement Descriptions

Harvest Business Advisors, LLC Copyright 2006-2009, All Rights Reserved

Sample Deliverable

11

Financial Evaluation & Benchmark


Sample Deliverables

Strategic Alternatives (1)


Sample Deliverables

Strategic Alternatives (2)


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


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


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.


A Growth Strategy

Management Consulting Firm

Overview

Documents

Harvest Business Advisors Overview