Invitation for Wealth Management Feasibility Analysis

SUSTAINABLE GROWTH STRATEGIESFOR LEADING CPA FIRMSFor Use With Prospective Consulting Clients Only – Not For Use With Public

8150 N. Central Expressway | Suite 500 | Dallas, TX 75206 | www.1stGlobal.com© Copyright 2012, 1st Global. All rights reserved. 1st Global Wealth Management Feasibility Analysis and Consultation

is a registered trademark of 1st Global Partners. Securities offered through 1st Global Capital Corp., Member FINRA, SIPC Investment advisory services offered through 1st Global Advisors Inc.

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Contact us today to schedule a 1st Global Wealth Management Feasibility Analysis and Consultation™

1st Global ConsultingPhone: (800) 959-8461E-mail: [email protected]

2 | SUSTAINABLE GROWTH STRATEGIES FOR LEADING CPA FIRMS

To create sustainable growth CPA firms need proven processes that include

world-class research, CPA firm advice, exceptional business development education and

innovative technology.

SUSTAINABLE GROWTH STRATEGIESFOR LEADING CPA FIRMS

Partners and shareholders of CPA firms are very concerned about how to generate sustainable and profitable growth. The double-digit growth of the Golden Age of the CPA profession is a distant memory for most firms. The national aggregate growth of the CPA profession for the past several years has averaged only a meager two percent annually.*

By all standard measures, the CPA profession is a mature industry, not a growth industry. Mature industries have slow growth, fierce price competition, diminishing client loyalty, easy price comparison by existing and prospective clients, rapid commoditization and decline of perceived value. What’s more, in mature industries participants are fewer due to aggressive mergers and acquisitions.

The nobility, professionalism, reliability and problem-solving abilities of the CPA profession have never been more advantageous despite this economic trend. The CPA profession is viewed as a strong and positive brand.

Classic marketing and business theory suggests that to again create double-digit revenue and profit growth, a CPA firm must engage in one or more of the following strategies:

:: Acquire less profitable competitors at a reasonable price and eliminate redundant fixed costs

:: Eliminate client attrition through a focus on key account services and relationship management

:: Move into synergistic services that are high-growth and high-benefit

1st Global will help you ascertain best tactics in each of these three strategies. With our knowledge of the market and extensive research capabilities, we will help your firm discover its opportunities to create sustainable growth without dramatically altering your firm or its culture. With 20 years of experience in helping CPA firms build wealth management enterprises, we have developed proven methods for success. Furthermore, our experience in CPA firm culture and dynamics has helped hundreds of CPA firms create and sustain momentum throughout their entire firm.

If your firm is assessing how to create sustainable growth, 1st Global Consulting will show you the way.

:: 1ST GLOBAL CONSULTATIVE APPROACH::

*IBISWorld’s historic revenues for CPA firm (accounting services, NAICS # 54121c), on an inflation adjusted basis, was flat from 2006 through 2011, $64.6 billion and $64.4 billion, respective. IBISWorld is the world’s largest publisher of US industry research has analyzed the CPA and non CPA providers of the broad range of professional services. IBISWorld uses the North American Industry Classification System (NAICS) to segment industry revenues and it is the basis from which this research is made.

NEXT STEPS | 11

A standard 1st Global Wealth Management Feasibility Analysis and Consultation™ engagement is priced at $15,000 (may vary slightly depending on scope of engagement).

Participating in a 1st Global Wealth Management Feasibility Analysis and Consultation™ does not obligate your firm to engage 1st Global in any other business development offering.

HERE ARE THE NEXT STEPS FOR ENGAGING 1st GLOBAL IN A WEALTH MANAGEMENT FEASIBILITY ANALYSIS AND CONSULTATION™.

CONTACT 1st GLOBAL CONSULTING.(800) 959-8461 or [email protected]

PARTICIPATE IN A QUALIFICATION INTERVIEW. 1st Global Consultants will go through a series of questions with you to determine whether your firm will benefit from this feasibility analysis and consultation.

FACT-FINDING AND INFORMATION GATHERING PROCESS. Through a series of questionnaires and interviews, we will gather the information required to prepare the analysis.

1st GLOBAL PREPARES YOUR FIRM’S FEASIBILITY ANALYSIS. All data and findings are strictly confidential.

1st GLOBAL PRESENTS FINDINGS. We will present the findings of the embedded potential your firm has as a wealth management practice. This report and on-site consultation will illustrate how you can maximize a wealth management enterprise through optimal client services, processes, structure, techniques and financial metrics.

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SUSTAINABLE GROWTH STRATEGIES FOR LEADING CPA FIRMS | 3

THE 1ST GLOBAL WEALTH MANAGEMENTFEASIBILITY ANALYSIS AND CONSULTATION™

Whether your firm is new to wealth management or seeking to improve an existing practice, 1st Global’s consulting resources can help you derive maximum benefit.

:: Analysis of current infrastructure and potential for success in wealth management

:: Pro forma Profit and Loss estimates for the wealth management enterprise— at one-, three-, five- and 10-year periods

:: Pro forma valuation of a wealth management enterprise

:: Demographic and geographic market research on the firm’s potential client base

:: Understanding impediments to success

:: Personality and skill testing of management team

:: Regulatory compliance review of existing wealth management business

:: Wealth management “best practices” for CPA firms

:: Development of a compelling, written value proposition

:: Consultation on the current and impending regulatory environment

:: Strategic firm business and succession planning

:: SWOT analysis of business models

Building a successful wealth management enterprise inside a multi-partner accounting firm not only takes the will to succeed, but also a road map for reaching your firm’s highest potential. We have incorporated the insights gained from working with hundreds of successful firms to develop and offer this wealth management feasibility analysis and consultation engagement.

The benefits include a riskless look at your firm’s proposed or embedded wealth management enterprise value as well as outlining the optimal services, processes, structure and techniques to maximize profitability and value of your firm’s wealth management enterprise.

:: HIGHLIGHTS OF ANALYSIS & CONSULTATION::

4 | SAMPLING OF FEASIBILITY ANALYSIS CONTENT

SAMPLING OFFEASIBILITY ANALYSIS CONTENT

::PRO FORMA PROFIT AND LOSS FOR THE WEALTH MANAGEMENT ENTERPRISE::Determining suitable financial expectations and tracking actual performance is a challenge for CPA firms. Well designed and run wealth management enterprises can generate 35 percent plus pretax margins. This type of profitability creates significant enterprise value over time. Many firms have built a wealth management enterprise with a value that is three to seven times more than that generated by traditional tax and accounting services**. 1st Global uses a comprehensive valuation model that estimates current and pro forma enterprise value based on work we have done for our CPA firm clients with the assistance of consulting and valuation organizations specializing in advising wealth management firms.

The charts on the facing page provide examples of the enterprise value estimates. This sample data corresponds to an average multi-partner practice generating $3,000,000 in gross wealth management revenue. Today, enterprise value is not only a business measure, but also a key component of an exit strategy for many senior members of the firm.

S A MP L E

This data represents a composite of the average overhead structure of the high-performing practices that participated in the 2010 InvestmentNews/Moss Adams Financial Performance Study of Advisor Firms.

Revenue $3,061,187 100.0%

Direct Compensation Expenses (professional salaries, commissions, bonuses, incentive comp.) $1,269,087 41.5%

Gross Profit $1,792,100 58.5%

Overhead Expenses

Auto Expenses $11,818 0.3%

Business Development/Marketing $46,716 1.5%

Depreciation/Amortization $55,499 1.8%

Equipment Leases/Purchases $16,567 0.5%

Health and Other Employee Insurance Benefits $70,407 2.3%

Information Technology $73,468 2.4%

Insurance, Business-Related (P&C, E&O, etc.) $29,105 0.9%

Office Expenses $35,732 1.2%

Office Rent, Repairs and Maintenance $101,019 3.3%

Outsourcing Services, Excluding IT $41,598 1.4%

Payroll Taxes $81,399 2.7%

Professional Services $54,603 1.8%

Retirement Benefits $51,761 1.7%

Salaries, Admin, and Support/Technical Staff $160,201 5.2%

Salaries, Technical Specialists $55,101 1.8%

Salaries, Dedicated Management Staff $103,875 3.4%

Taxes and Licenses, Excluding Payroll Taxes $9,021 0.3%

Training, CE, Professional Dues/Licensing $17,729 0.6%

Travel $24,271 0.8%

Utilities/Phone/Fax/Online Services $24,609 0.8%

Overhead Expense Allocation $9,401 0.3%

All Other Expenses $60,569 2.0%

Total Overhead Expenses $1,134,469 37.0%

Operating Income $657,631 21.5%

**These are hypothetical examples used for illustrative purposes only. The results of your firm’s financial services practice will vary.

SAMPLING OF FEASIBILITY ANALYSIS CONTENT | 5

A high-performance, full-service wealth management enterprise must offer a wide range of solutions, especially to complex high net worth clients. Some solutions can only be provided in a transactional, non-recurring revenue structure. A weighting of revenues approximating 75 percent recurring and 25 percent non-recurring is an optimal model followed by most successful wealth management firms.

Wealth management practices skewed more toward recurring revenue and less toward transactional revenue have predicably higher foundational practice values. Scenarios A, B and C illustrate the marginal effect that changes to recurring or non-recurring revenue mixes have on the overall foundational value that can affect the selling price of a wealth management enterprise. Note that the terms “value” and “price” are different. Price is what a potential buyer is willing to pay for an enterprise. While the value has an impact on this, decreasing the breadth of services and solutions may lower the price a buyer would be willing to pay. Other factors of influence include:

:: concentration of firm revenues with top clients

:: diversification of services

:: geographic location

:: average age of clients

:: specialty niche practices or knowledge

:: and existence or lack of institutionalized processes


Scenario B: 75%/25% Revenue Mix

Amount Rate Notes

Gross Revenue: a $3,061,187

TAMP & Service Expenses: b $443,871

Licensing & Administrative Expenses: c $30,756

Direct Expense: d $240,000 ............ Professional Manager’s Compensation

Gross Operating Profit (a - b - c - d): e $2,346,560

Overhead Expense: f $765,297 ............ Fixed and Variable Expenses, Staff Salaries

Net Operating Profit (e - f): g $1,581,263

Net Revenue Recurring: h $2,295,890 75%

Net Revenue Non-Recurring: i $765,297 25%

NOP * Recurring Ratio (g * h): j $1,185,947

NOP * Non-Recurring Ratio (g * i): k $395,316

Recurring NOP * NOP Multiple (j * 7): l $8,301,630 6x - 7x Low for external, high for internal

Non-Recurring NOP * NOP Multiple (k * 4): m $1,581,264 3x - 4x Low for external, high for internal

Foundational Practice Value (l + m): $ 9,882,893

Turnkey Asset Management Platform

Scenario C: 85%/15% Revenue Mix

Amount Rate Notes









Net Revenue Non-Recurring: i $459,178 15%




Non-Recurring NOP * NOP Multiple (k * 4): m $932,839 3x - 4x Low for external, high for internal



Scenario A: 65%/35% Revenue MixAmount Rate Notes









Net Revenue Non-Recurring: i $1,071,415 35%




Non-Recurring NOP * NOP Multiple (k * 4): m $2,250,908 3x - 4x Low for external, high for internal



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S A M P L E40,000 ............

S A M P L E40,000 ............ Professional Manager’s Compensation

S A M P L EProfessional Manager’s Compensation

$2,373,089

S A M P L E$2,373,089

xpense: f $7

S A M P L Expense: f $7xpense: f $7


S A M P L Expense: f $765,297 ............

S A M P L E65,297 ............65,297 ............

S A M P L E65,297 ............65,297 ............

S A M P L E65,297 ............xpense: f $765,297 ............xpense: f $7

S A M P L Expense: f $765,297 ............xpense: f $7 Fixed and Variable Expenses, Staff Salaries

S A M P L EFixed and Variable Expenses, Staff Salaries

rofit (e - f): g

S A M P L Erofit (e - f): grofit (e - f): g

S A M P L Erofit (e - f): grofit (e - f): g

S A M P L Erofit (e - f): g $1,607,792

S A M P L E$1,607,792

evenue Recurring: h

S A M P L Eevenue Recurring: hevenue Recurring: h


S A M P L Eevenue Recurring: h $1,989,772

S A M P L E$1,989,772

et R

S A M P L Eet Revenue

S A M P L Eevenue N

S A M P L ENon-Recurring:

S A M P L Eon-Recurring: i $1,071,415

S A M P L Ei $1,071,415 i $1,071,415

S A M P L Ei $1,071,415 i $1,071,415

S A M P L Ei $1,071,415

NO S A M P L ENOP S A M P L E

P *S A M P L E* RS A M P L E Recurring Ratio (g S A M P L E

ecurring Ratio (g S A M P L E*S A M P L E* h): j $1,045,065 S A M P L E h): j $1,045,065

on-Recurring RS A M P L Eon-Recurring R

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S A M P L E40,000 ............



rofit (a - b - c - d): e $2,346,560

S A M P L Erofit (a - b - c - d): e $2,346,560

xpense: f $7



S A M P L Expense: f $765,297 ............

S A M P L E65,297 ............65,297 ............

S A M P L E65,297 ............65,297 ............




rofit (e - f): g $1,581,263

S A M P L Erofit (e - f): g $1,581,263rofit (e - f): g $1,581,263




S A M P L Erofit (e - f): g $1,581,263

et R

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S A M P L E$2,295,890

N

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S A M P L Eevenue N


S A M P L Eon-Recurring: i $765,297

S A M P L Ei $765,297 i $765,297

S A M P L Ei $765,297 i $765,297

S A M P L Ei $765,297


P *S A M P L E* Recurring Ratio (g S A M P L E Recurring Ratio (g

on-Recurring Ratio (g S A M P L E

on-Recurring Ratio (g

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S A M P L E40,000 ............



$2,320,029

S A M P L E$2,320,029

xpense: f $7



S A M P L Expense: f $765,297 ............

S A M P L E65,297 ............65,297 ............

S A M P L E65,297 ............65,297 ............




rofit (e - f): g $1,554,732





S A M P L Erofit (e - f): g $1,554,732

et R

S A M P L Eet Revenue Recurring: h $2,602,009

S A M P L Eevenue Recurring: h $2,602,009 evenue Recurring: h $2,602,009





N

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S A M P L Eevenue N


S A M P L Eon-Recurring: i $459,178

S A M P L Ei $459,178 i $459,178

S A M P L Ei $459,178


P *S A M P L E* Recurring Ratio (g S A M P L E Recurring Ratio (g

on-Recurring Ratio (g S A M P L E

on-Recurring Ratio (g

These are hypothetical examples used for illustrative purposes only. The results of your firm’s financial

services practice will vary.

Target Clusters

#70df00 Core Customer#7ba8fb Opportunity Customers#b30023 Untapped Potential Customers#c0c0c0 Unclassified

Clusters Ranked Top to Bottom

1 B07 Generational Soup2 C14 Boomers and

Boomerangs3 D17 Cul de Sac Diversity4 C11 Aging of Aquarius5 H27 Birkenstocks and

Beemers6 C13 Silver Sophisticate7 A05 Couples with Clout8 J34 Aging in Place9 F22 Fast Track Couples10 A01 American Royalty11 H26 Progressive Potpourri12 L41 Booming and

Consuming13 H28 Everyday Moderates14 N46 True Grit Americans15 B08 Babies and Bliss16 G25 Urban Edge17 I30 Stockcards and State

Parks18 N47 Countrified Pragmatics19 E21 Unspoiled Splendor20 A04 Picture Perfect Families21 C12 Golf Carts and

Gourmets22 I31 Blue Collar Comfort23 B09 Family Fun-tastic24 G24 Status Seeking Singles25 E19 Full Pockets, Empty

Nests26 F23 Families Matter Most27 D16 Settled in Suburbia28 D15 Sports Utility Families29 K37 Wired for Success30 A03 Kids and Cabernet31 A02 Platinum Prosperity32 K40 Bohemian Groove33 J35 Rural Escape34 O50 Full Steam Ahead35 Q62 Reaping Rewards

36 O54 Striving Single Scene37 L42 Rooted Flower Power38 E20 No Place Like Home39 P59 Nuevo Horizons40 P56 Rolling the Dice41 O53 Colleges and Cafes42 I33 Hispanic Harmony43 N48 Gospel and Grits44 Q64 Town Elders45 B10 Asian Achievers46 H29 Destination Recreation47 L43 Homemade Happiness48 O51 Digital Dependents49 S71 Hard Times50 J36 Settled and Sensible51 K39 Metro Fusion52 Q63 Footloose and Family

Free53 A06 Jet Set Urbanites54 N49 Work Hard, Pray Hard55 I32 Latin Flair56 S68 Small Town Shallow

Pockets57 K38 Gotham Blend58 M45 Diapers and Debit Cards59 O52 Urban Ambition60 Q65 Senior Discounts61 P58 Fragile Families62 R66 Dare to Dream63 S69 Soul Survivors64 D18 Soulful Spenders65 M44 Red, White and

Bluegrass66 P60 Ciudad Strivers


Building a successful wealth management enterprise inside a multi-partner CPA firm takes more than general information; it takes specific intelligence about the firm’s clients and their propensity to become excellent wealth management clients. Using 1st Global’s team of market data and research analysts and their robust data-mining

capabilities, we work with your firm to understand the demographics of your region and embedded wealth management potential of your existing accounting or wealth management clients. Our analysts are able to provide detailed profiles of your firms existing or target clients.

:: DEMOGRAPHIC AND GEOGRAPHIC MARKET RESEARCH::

:: TARGET MARKET CLUSTERING ::


© 2012, Alteryx, Inc. Irvine, CA | 888-836-4274 | Powered by Alteryx®©2006-2011 TomTom.

Existing clients are assigned to a profile, segmenting those most likely to adopt wealth management services and provide a greater understanding of the demographics and psychographics.

:: AGGREGATE NET WORTH MAP ::

Powerful mapping technologies show where the most qualified existing and prospective clients in your defined area of interest.

Individual attributes such as net worth, total assets and liquidity, using more than 30 database sources, individual-level data and advanced statistical techniques.

:: INDIVIDUAL NET WORTH PROFILE ::

ADDRESS PROFILE

Search CriteriaName:Second Indiv:Address: 123 ANY STREET

UNIT 16655CITY, MA 02116

Doe, Jane K

Other CriteriaDate of Birth: Age:Business Name:

ID:

Financial Report:Rating Summary

Influence:P2G Score:

Aggregate Information

Total Charitable Cont.:

Market Guide Total Comp:D&B Company Value:Property Count:1

1-0 043500

Asset IndicatorsInvestment Rating: 6

Total Political Cont.: 20675Pension:

Plane:Boat:Stock Holdings:

Real Estate:Company Ownership: N

NNYNY

Accredited Investor:Y

DescriptionAmountComponentIncludedSupplemental Rating Information:

Asset Summary

2. Stock Component3. Pension Component4. RealEstate Component (from Lexis Nexis)

Net Worth:

3543949.2 10631847.667595564 67595564

0 011097550 55487750

133715161.6

1. Income Component (from Lexis Nexis)Aggregate Values Calculated Values

Age Used: 52(from Household Profile)S A MP L E

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Property Count:0

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Total Political Cont.:

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Total Political Cont.: 20675

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As reported in the AICPA/Moss Adams LLP 2007 Personal Financial Planning Practice Study, firms that set goals for growth and business development were far more successful than firms that did not.

Creating the optimal, integrated structure takes time. The challenges are well known, but most firms struggle to address them and find a solution. The solution starts with a clear vision of what the ultimate destination should be (i.e., the firm’s definition of success) and then carefully defining each step required to realize that vision. Based on interviews with the most successful 1st Global firms and Moss Adams’ experience consulting with CPA firms, we have identified four stages or steps toward the vision. How fast a CPA firm moves through these stages depends on the firm’s commitment and with whom they choose to partner.

Over time, as services broaden, the revenue size of client relationships should also expand. The AICPA/Moss Adams LLP 2007 Personal Financial Planning Practice Study indicated financial planning firms have revenue of $970 per client, whereas wealth management firms attain, on average, $2,800 in revenue per client.

:: STRUCTURING FOR SUCCESS ::


Framework for a practice with five partners and 3,000 household clients.

CLIENT OPPORTUNITY

STARTBUY-IN &

PLANNING

STAGE 1AWARENESS &

EDUCATION

STAGE 2ACTIVE

BUSINESS

STAGE 3RESULTS &

ACCOUNTABILITY

STAGE 4COMPLETE

INTEGRATION

• 3,000 individual tax clients.

• 250 business clients.

• Actively contact 100-150 clients.

• Market to all clients.• Establish 50 new

wealth management clients.

Establish 120-150 total wealth management clients.

At this stage, the firm should have wealth management relationships with more than 20 percent of the qualified client opportunities.

At this stage, the firm should have wealth management relationships with 25 percent or more of the qualified client opportunities.

QUALIFIED OPPORTUNITY

Typically, 80 percent of the clients will be qualified prospects for wealth management, and as many as 30 percent can be converted successfully.

TARGET NUMBER OF

CLIENTS (Based on 3,000

CPA Clients)

50 150 250 300+

TARGET REVENUE (Per Client)

$1,600 $2,200 $3,000 $5,000

EXAMPLE BUSINESS DEVELOPMENT GOALS

:: REVENUE GROWTH THROUGH THE FOUR STAGES ::Revenue Growth Through the Four Stages

STAGE 1Awareness & Education

STAGE 2Active

Business

STAGE 3Results &

Accountability

STAGE 4CompleteIntegration

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

Based on the evolution of the service models and increasing the amounts for high performance, firm revenue should grow through

each stage to ultimately target $5,000 in revenue per client relationship.



The CPA and financial advisor roles are complementary contributors to the overall client experience and each enhances the value of the client relationship. The CPA and financial advisor should be seen as peers within the client service team and their respective strengths equally recognized.

:: CONCERNS AND OBSTACLES::

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These are the common concerns and obstacles about offering Wealth Management expressed by multi-partner CPA firms in focus groups conducted in major markets. We can show you how leading CPA firms have successfully overcome these obstacles.

Concerns and Obstacles

Very Significant

Very Insignificant

Individual Client

CPA FINANCIAL ADVISOR

Importance:• Has an established relationship with client• Is recognized as credible• Has knowledge of client

Constraints:• Compliance-driven relationship• Limited service opportunities; unless client is a

business owner, the relationship has narrow scope

Importance: • Provides value-added client service• Responds to client needs• Deepens firm’s relationship with client

Constraints: • Client relationship• Knowledge of client

ENTERPRISE FIRM


1st Global consultants will work with your firm to develop a road map to building a strong, successful financial services practice. Our wealth management wisdom emanates from our vigilance to industry trends, research from industry consulting groups and associates and 1st Global studies. Using these academic sources with hands-on experience at hundreds of wealth management firms in nearly all 50 states, we can provide your firm with a method for success. Your firm will have an understanding of the essential capabilities for wealth management excellence that are relevant and actionable.

:: CONSULTATION OF BEST PRACTICES::

1st Global’s Wealth Management Feasibility Analysis and Consultation™ will help you decide if you are ready to take on the exciting challenge of growing your CPA firm into a full-service wealth management business. The benefits can be great. You have the potential to generate a revenue stream that outpaces that of your traditional tax and accounting practice and the ability to provide valuable services for both existing and new clients. Building a successful wealth management enterprise inside a CPA firm is financially and emotionally rewarding. 1st Global Consulting will help you every step of the way.

::QUALITY DELIVERABLES::


10 | 1ST GLOBAL CONSULTING SERVICES

1st Global is the largest independently owned wealth management partner for accounting and legal firms. More than 450 of these select firms rely on our expertise and resources to meet their clients’ wealth management needs. They also count on our business development tools and consulting services to ensure their success. We provide support, technologies and education to help advisors in every facet of business, from operations and administration to sales and marketing. With 1st Global in your corner, your clients’ potential to build wealth, and your ability to manage it, are the same: exceptional.

1st Global was founded in 1992 by CPAs who believe that accounting, legal and financial professionals are uniquely qualified to add value to their existing client relationships by offering comprehensive wealth management services.

Our mission is to advance the accounting, legal and financial services professions through excellence in education, technology, innovation and client services. We are dedicated to educating, coaching and supporting the CPAs, attorneys, tax professionals and other financial specialists who make up our network of consulting clients.

:: CPA FIRM GROWTH CONSULTANTS::

ABOUT 1st GLOBAL

1st GLOBAL CONSULTING SERVICES

:: FINANCIAL PLANNING PRACTICE CONSULTATION

:: ADVANCED FINANCIAL SOLUTIONS DESIGN

:: SUSTAINABLE INCOME PLANNING

:: TEAM CONSTRUCTION AND ORGANIZATION

:: SELECTING AND HIRING AN EXPERIENCED FINANCIAL ADVISOR

:: ASSET MANAGEMENT PLATFORM

:: WEALTH MANAGEMENT BUSINESS PLANNING

:: Client Acquisition• Targeted Marketing• Introductions (Referral Marketing)• Conducting Client Seminars

:: Client Services• Client Development

and Client Experience• Service Model• Segmentation and Analysis

2 | SUSTAINABLE GROWTH STRATEGIES FOR LEADING CPA FIRMS

To create sustainable growth CPA firms need proven processes that include

world-class research, CPA firm advice, exceptional business development education and

innovative technology.

SUSTAINABLE GROWTH STRATEGIESFOR LEADING CPA FIRMS

Partners and shareholders of CPA firms are very concerned about how to generate sustainable and profitable growth. The double-digit growth of the Golden Age of the CPA profession is a distant memory for most firms. The national aggregate growth of the CPA profession for the past several years has averaged only a meager two percent annually.*

By all standard measures, the CPA profession is a mature industry, not a growth industry. Mature industries have slow growth, fierce price competition, diminishing client loyalty, easy price comparison by existing and prospective clients, rapid commoditization and decline of perceived value. What’s more, in mature industries participants are fewer due to aggressive mergers and acquisitions.

The nobility, professionalism, reliability and problem-solving abilities of the CPA profession have never been more advantageous despite this economic trend. The CPA profession is viewed as a strong and positive brand.

Classic marketing and business theory suggests that to again create double-digit revenue and profit growth, a CPA firm must engage in one or more of the following strategies:

:: Acquire less profitable competitors at a reasonable price and eliminate redundant fixed costs

:: Eliminate client attrition through a focus on key account services and relationship management

:: Move into synergistic services that are high-growth and high-benefit

1st Global will help you ascertain best tactics in each of these three strategies. With our knowledge of the market and extensive research capabilities, we will help your firm discover its opportunities to create sustainable growth without dramatically altering your firm or its culture. With 20 years of experience in helping CPA firms build wealth management enterprises, we have developed proven methods for success. Furthermore, our experience in CPA firm culture and dynamics has helped hundreds of CPA firms create and sustain momentum throughout their entire firm.

If your firm is assessing how to create sustainable growth, 1st Global Consulting will show you the way.

:: 1ST GLOBAL CONSULTATIVE APPROACH::

*IBISWorld’s historic revenues for CPA firm (accounting services, NAICS # 54121c), on an inflation adjusted basis, was flat from 2006 through 2011, $64.6 billion and $64.4 billion, respective. IBISWorld is the world’s largest publisher of US industry research has analyzed the CPA and non CPA providers of the broad range of professional services. IBISWorld uses the North American Industry Classification System (NAICS) to segment industry revenues and it is the basis from which this research is made.

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A standard 1st Global Wealth Management Feasibility Analysis and Consultation™ engagement is priced at $15,000 (may vary slightly depending on scope of engagement).

Participating in a 1st Global Wealth Management Feasibility Analysis and Consultation™ does not obligate your firm to engage 1st Global in any other business development offering.

HERE ARE THE NEXT STEPS FOR ENGAGING 1st GLOBAL IN A WEALTH MANAGEMENT FEASIBILITY ANALYSIS AND CONSULTATION™.

CONTACT 1st GLOBAL CONSULTING.(800) 959-8461 or [email protected]

PARTICIPATE IN A QUALIFICATION INTERVIEW. 1st Global Consultants will go through a series of questions with you to determine whether your firm will benefit from this feasibility analysis and consultation.

FACT-FINDING AND INFORMATION GATHERING PROCESS. Through a series of questionnaires and interviews, we will gather the information required to prepare the analysis.

1st GLOBAL PREPARES YOUR FIRM’S FEASIBILITY ANALYSIS. All data and findings are strictly confidential.

1st GLOBAL PRESENTS FINDINGS. We will present the findings of the embedded potential your firm has as a wealth management practice. This report and on-site consultation will illustrate how you can maximize a wealth management enterprise through optimal client services, processes, structure, techniques and financial metrics.

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SUSTAINABLE GROWTH STRATEGIESFOR LEADING CPA FIRMSFor Use With Prospective Consulting Clients Only – Not For Use With Public

8150 N. Central Expressway | Suite 500 | Dallas, TX 75206 | www.1stGlobal.com© Copyright 2012, 1st Global. All rights reserved. 1st Global Wealth Management Feasibility Analysis and Consultation

is a registered trademark of 1st Global Partners. Securities offered through 1st Global Capital Corp., Member FINRA, SIPC Investment advisory services offered through 1st Global Advisors Inc.

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Contact us today to schedule a 1st Global Wealth Management Feasibility Analysis and Consultation™

1st Global ConsultingPhone: (800) 959-8461E-mail: [email protected]

Documents

Invitation for Wealth Management Feasibility Analysis