[Company] Growth Strategy Final Presentation Month DD, YYYY

[Company] Growth Strategy Final Presentation Month 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

Overall Work Plan - Original

Overall Work Plan - Revised 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

Core Capabilities, Strengths and Weaknesses • 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 • 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 • 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 • 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 • 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 Unit Cost (logarithmic scale) Cumulative Output • Source: Internal interviews

[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” • 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” • 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 • Leads to “structural” • growth constraints • Source: Internal interviews

[Division] Revenue is Fairly Flat, Only TX and CA Have Organic Growth… Revenue * First quarterly results not used due to partial quarterly results that skews the average Source: [Company] Data and Venture Advance analysis

…and [Division] PAEBITDA is Down PAEBITDA * First quarterly results not used due to partial quarterly results that skews the average Source: [Company] Data and Venture Advance analysis

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” • 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 • 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 • Recommend more frequent internal communications regarding all business divisions as well as the overall vision of the company • Source: 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 • 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. • 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.” • ___________, _______ • 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. • 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.” • ___________, ________

Market Segments Have Significantly Different Growth and Profitability Growth __________ Technology / Software _________ Management __________ Information • Increased leverage: • Repeatability • Scalability • Process automation __________ Publishing __________ Support Services Document Mgmt Services Profitability • Additional analysis is needed • further 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 • 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

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

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

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

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

Potential Framework for Thinking About Process Centralization 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

[Competitor] Profile Strengths __________ Services Product Line Perceived Strategy for __________ Services Weaknesses • Source: Expert interviews

Top __________ Process Outsourcers 2009 Top 20 Document Process Outsourcing Vendors 2009 Top 20 Core __________ Services Outsourcing 2009 Top 20 __________ Administrative Support Services Outsourcers Source: http://www.theblackbookofoutsourcing.com/

71% of ____Firms Offshore __________ Services and 39% Offshore in Excess of $50k per Year Source: Survey of 51 customers; __________ Process Outsourcing blog (http://__________lyours.blogspot.com/)

_______________ 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

Source: National _______ News, “Quarterly Data Report Q2-2009; Venture Advance analysis and estimates Top Ten __________as of Q2-2009 Dst 1: Dst 2: Dst 8: Dst 3: Dst 6: Dst 7: Dst 9 Dst 10: Dst 4: Dst 11: Dst 5:

Source: (1_________; (2, 3) Est. based on ___________ ________by Top _____ in Top-Ranked States (2008 Data) 1 3 2

The ________ Industry is Highly Concentrated… The largest 10 ______ account for 73.5% of the market Cumulative % Market Share OneWest PHH SunTrust US Bank National City GMAC Citi Chase Wells Fargo Bank of America # of __________ • Source: ________________

Source: ____________________ ____________ by State: 3.1m Total ________ (2008 Data) 32k 8k 1k 3k 1k 1k 24k 23k 11k 24k 1k 55k 52k 1k 138k 6k 42k 7k 3k 25k 141k 123k 113k 58k 18k 66k 1k 67k 64k 8k 823k 39 9k 3k 41k 5k 49k 152k 15k 4k 16k 16k 8k 114k 2k 8k 120k 489k Highest number of filings Moderate number of filings Lowest number of filings Current markets are indicted with an outline

Trends that May Impact the Core Business: [Division]

_________ 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 • 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: Very small (1 - 5 customers) Global (>500 customers) <25% >75% Less than 5 years Over 20 years 5 – 10 years 51% - 75% 10 – 20 years Large (50 - 500 customers) 26% - 50%

[Company] Growth Strategy Final Presentation Month DD, YYYY