High Growth Professional Services Firms

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o What makes a firm grow fast

o Why do customers buy

What We’ll Cover

o What makes a firm valuable✔

✔

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o How can you make it happen✔

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COMMANDING A PREMIUM VALUATION

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Top Dollar

22XEARNINGS

2-3XCOMPARIBLES

10XREVENUE

15XEBITA

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What Buyers Buy

THE EXPECTATION OFFUTURE REVENUE

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40 Factors

› Financial

› Employees

› Brand/Marketing

› Clients

› Management Team

› Technology

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Valuation Driver 5

QUALITY OFMANAGEMENTTEAM

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Valuation Driver 4

QUALITY OF EARNINGS

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Valuation Driver 3

EXISTING CLIENTCONTRACTS

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Valuation Driver 2

PROJECTED GROWTH RATE

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Valuation Driver 1

STRENGTH OF EXISTING CLIENT RELATIONSHIPS

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ACHIEVING HIGH GROWTH

Marketing Spending and Growth

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Revenue Growth

2007 2008

Marketing Spending

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Marketing Positioning

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Business Development Priorities

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Marketing Initiative Priorities

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Referral Business

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The Elevator Pitch (% Acceptable)

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The Elevator Pitch

What Do We Do?a) IT consulting

b) Consulting engineers

c) CPA firm

d) Graphic Design

Our mission is to provide the highest level of quality and to maintain a tradition of technical excellence, commitment to quality and client satisfaction on any project the firm takes on. We strive to apply high professional, ethical and aesthetic standards.

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UNDERSTANDING YOUR CLIENTS

Identifying the Competition

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18 166

Competitors identified by clients

Competitors identified

by firm

How to Improve Marketing

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Approach Percentage

Personalized understanding of my situation 19.9%

No high pressure sales calls 13.5%

Share relevant case studies 12.2%

Present detailed solution 10.9%

Meet with me personally 9.0%

Show that you want our business 6.4%

Follow our structured process 4.5%

All other marketing 21.8%

Most Meaningful Selection Criteria

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Criteria Percentage

Expertise/Technical skills 19.8%

The project team 18.1%

Firm experience 14.9%

Knowledge of my industry/Situation 12.5%

Reputation 11.1%

Firm size and reach 5.6%

Availability/Flexibility 5.6%

Personal relationship 4.5%

Price 4.2%

Firm management approach 3.1%

Firm resources 0.7%

What Were You Trying to Avoid?

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Concern Percentage

Poor results 47.9%

Project team problems 38.7%

High fees/Cost overrun 10.9%

Wrong size firm 9.2%

What Do Buyers Want?

› Can you fix my problem?

› Will you make my life easier?

› Do I enjoy you as a person?

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Aware of services offered by current firm?

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Yes

No

36.3%

63.7%

Desired Services from Existing Firm

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None

One or morenew services

32%

68%

Desired services already offered

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Notoffered

Already offered

14.6%

85.4%

Offering New Services

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Approach Percentage

Senior person makes personal visit and discusses business situation and makes recommendations

45.4%

Senior person makes personal call and discusses business situation and makes recommendation

15.9%

Senior person sends personal email and discusses business situation and makes recommendations

13.6%

Follow our structured process 4.5%

All other marketinge.g. Direct mail, newsletters, website, trade show

20.4%

Reasons for Loyalty

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Reason Percentage

Why Yes?

They delivered on their promise 67.4%

Have become a trusted partner 18.6%

Contract length 14.0%

Why No?No ongoing need/end of contract 60.0%

They did not deliver 40.0%

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BUILDING YOUR FIRM

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Your Growth Engine

› Profitable Clients

› That Remain Loyal

› And Refer Others

Building Your Firm

› A Competitive Strategy

› The Right People

› Delivering What You Promise

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Top Challenges

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Contact Information

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Lee Frederiksenlwf@pivotalbrands.com

www.pivotalbrands.com

703-391-8870