PRESTON TODD STRATEGICCONSULTING: PTSC

12.22.2019

Value PropositionInsight & PerspectiveOur ApproachWhy Choose PTSC?Selective Expertise

UnderstandResearchExpertiseService Capabilities

ConcludeDecision Analysis SummaryDecision ReportDynamic Update Report

DecideDraw ConclusionsGrowth StrategyExit Strategy

Getting Started

The PTSC Approach

Value PropositionInsight & PerspectiveOur ApproachWhy Choose PTSC?Selective Expertise

UnderstandResearchExpertiseService Capabilities

ConcludeDecision Analysis SummaryDecision ReportDynamic Update Report

DecideDraw ConclusionsGrowth StrategyExit Strategy

Getting Started

Value Proposition

Value PropositionInsight & Perspective

PTSC offers strategic insight and an unbiased, data-driven perspective to ensure every angle is considered for C-Suite Decision Making.

Value PropositionApproach

PTSC offers Insight & Perspective through our three-step process (Understand, Conclude, Decide) to best develop meaningful growth and exit strategies for our clients

ResearchLeverage expertise and experience to define and solve your problemLeverage library of over 110 unique industriesLeverage experience with Payments Processing Platforms, Infrastructures and SaaS-based POS Solutions

Strategic AnalysesQuantitative capabilities such as valuation, client pipeline forecasting and KPI analysisQualitative capabilities such as risk assessment, client retention, supplier and contract analysis.

Decision Analysis SummarySynthesis of insights in Decision Report

Decision ReportMacroeconomic ConditionsMarket ResearchValuation Methodology

Dynamic UpdateBi-Annual Revisionary ReportMonitors changes in external conditions and market trends that continue to influence client decision-making

GrowthGrowth Equity/Minority InvestmentDebtDe-risking Initiatives Sales & Retention InitiativesMergers & Acquisitions

ExitTraditional Buy-OutMajority Buy-Out with Equity RollMinority Investment with Option Marketing Positioning Initiatives (Pre-Exit Initiatives)

• Transitional Plan• Client Relationships• Product/Service Initiatives

Value PropositionWhy choose PTSC?

PTSC Competitive AdvantagesSpecialty in software, payments, and financial technology: we offer valuations, M&A advisory services, benchmarking designed for success specifically in the lower-middle/micro-cap market

Smaller, dedicated, mobile consulting teams allow PTSC to better service clients; clients don’t pay for corporate “army” to perform the work

Substantial cost savings: clients pay for meaningful decision and recommendation deliverables, not brand names

Unique deliverable offerings: statements to help owner/operators make crucial decisions that are supplemented by periodic updates to company assessment

Our Expertise, Your SuccessMost advisory firms are industry-agnostic and primarily serve middle to upper market clientele while PTSC is dedicated to serving the lower end

There’s a meaningful difference between the needs of smaller and larger companies.

In the transactional case, the market is already “known” to both sides of the deal, thus the mergers and acquisition process is different. In the consulting and advisory case, the work performed focuses on steering owner/operators to best position their company in the marketplace, with an eye towards constantly creating value.

Therefore, choosing PTSC as a strategic advisory allows you to extract value that is specific to your needs while offering a favorable price structure relative to PTSC peers

Value PropositionSelective Expertise, Narrow Focus

PTSC operates with selective expertise in the lower-middle and micro-cap end of the marketplace to best deliver value in software, payments, and financial technology spaces

Engagement Sizes: Micro-Cap (approx. $50MM-$300 MM) Engagement Sizes: Large-Cap (approx. $10B+)

Value PropositionInsight & PerspectiveOur ApproachWhy Choose PTSC?Selective Expertise

UnderstandResearchExpertiseService Capabilities

ConcludeDecision Analysis SummaryDecision ReportDynamic Update Report

DecideDraw ConclusionsGrowth StrategyExit Strategy

Getting Started

Understand

UnderstandResearch

Understand and frame project through Industry Research and Expertise

Research: growing proprietary database library of over 110 unique industries

Expertise: previous experience to dozens of verticals within Payments Processing Platforms, Payments Infrastructures, and SaaS-based Integrated POS Solutions

Conduct relevant Strategic Analysis (Quantitative & Qualitative) and Assessment

Quantitative: valuation, client pipeline forecasting, key performance indicator analysis, financial statement adjustment, cost projections, allocation of funds, concentration & segment analysis

Qualitative: risk assessment, client retention, decision tree framing, personnel alignment, supplier contract analysis, market overview, competitive landscape review, product/service offering review, data collection & moderation

UnderstandResearch offers access to over 110 proprietary databases across dozens of verticalsActivity Payments

Sports ClubsMunicipal Programs

Alarm BillingAlgorithmic Underwriting &Risk ManagementSoftware App DeveloperAuction SoftwareAutomated Clearing House B2B Accounts ReceivableB2B Financing & LeasingBooking & Scheduling EnginesChildcare Management SoftwareChurch Management SoftwareConsumer FinancingCRMCross-Border Payments and Currency ConversionCrowdsourcing AppsData AnalyticsDental Management SystemsDigital Goods:

Music/GamingE-Books

Digital MarketingDonation ProcessingFaith Based (Tithing)Fundraising/Giving platformsE-commerce Fraud Protection (3-D Secure)Education

School Accounting PlatformsSchool Activity Payment PlatformsSchool Tuition Payment Platforms

Electronic Bill Presentment and Payment Emergency Notification & BillingERPEvent & Conference SchedulingField Service Management

LandscapingPest ControlHVAC, Plumbing & Electrical

Fleet Management SystemsGift and Loyalty

Government / Municipal Payment

Content Management SystemsParks & Recreation

Grocery AppsHealth Club and Spa Management SystemsHIT Software:

Practice Management SoftwareHospital Management SoftwareRevenue Cycle Management (RCM)Medical Billing

Hospitality Management SoftwareIndependent SalesOrganizations (ISO)Internet Payment Service Providers (IPSP)

Insurance Software:Claims Management SoftwareAgency Management SoftwareAuto Claims Management Software

Merchant Service Providers (MSP)Micropayments (Parking)Mobile Gift and Loyalty AppsMobile MarketingMobile PaymentsMobile WalletsMobile/Social GiftingNFC, GatewaysNon-Profit Management SoftwareOmni channel (Infrastructure)Omni channel (Marketing & Media)Online Meal Ordering

DeliveryPayment

Online Travel AgencyCommissions Billing

Payments & ReconciliationOptical Scanning TechnologyParking PaymentsPayFacs (Master Merchant Account)Payroll & HR:

E-HRHRISOnline Training PlatformsLabor Management Systems

Point of SalemPOSSemi-integrated POSElectronic Cash RegisterVirtual POS

PrepaidUS to Overseas Payments (Carrier Based Topoffs)Toll replenishmentPhoneCable/Internet

Prepaid (Closed Loop, Reloadable)

QR Coding TechnologyRent Payments (Residential & Vacation)Reservation Management SystemResort Management SoftwareRidesharing & Taxi AppsSalon Management and Booking PlatformShopping Cart SoftwareSMS Payments & Marketing / Text to PayTerminal Management Systems (Thin Layer Client)Third-Party ProcessorsTicketing (Event, Activity & Resort)Payment Service Providers (PSP)Internet Payment Service Provider (IPSP)Toll PaymentsUtility Management & BillingVeterinary Management Systems

UnderstandExpertise

Payments Processing

Platform

Payments Infrastructure

SaaS-based Integrated POS

Solutions

Acquirer

Processor

Bank

Alternative Payments

Mobile

Omni-Channel

Recurring Billing

PaaS

In-App Payments

Non-Profit/Education/Government

Field Service Management

Digital Goods/E-Commerce

Recurring Billing

ERP

UnderstandService Capabilities that leverage PTSC Expertise

QUANTATIVEValuation: including but not limited to EBITDA Size, Revenue Trends, Profit Margins, Customer Concentration, and Industry Concentration

Client Pipeline Forecasting: assess past pipeline to provide targeted future growth initiatives

Key Performance Indicator (KPI) Analysis: investigation of sales-force productivity under current and proposed compensation structures

Recast Financial Statements: normalizing EBITDA after review with management and projections

Allocation of Funds Analysis: determine allocation of transaction considerations if new partner recapitalizes business

Concentration & Segment Analysis: evaluate revenue dependency on individual customers, vendors, or products

QUALATIVERisk Analysis: including but not limited to strength and depth of Management Team, Competitive Landscape, and Competitive Decision Forecasting

Client Retention: evaluate reasons for customer attrition to implement mitigation strategy

Decision Tree Framing: simplify complex problems into manageable sets of options ranked by cost-benefit analysis

Advisory Team Alignment: identify and assemble ideal advisory team (CPA, Tax, Attorney, Etc.) to mitigate risk

Supplier Contract Analysis: examination and summary of all relevant contracts to determine optimal partners terms

Data Collection and Moderation: administration of data room containing Level 1 diligence materials for prospect review

Value PropositionInsight & PerspectiveOur ApproachWhy Choose PTSC?Selective Expertise

UnderstandResearchExpertiseService Capabilities

ConcludeDecision Analysis SummaryDecision ReportDynamic Update Report

DecideDraw ConclusionsGrowth StrategyExit Strategy

Getting Started

Conclude

ConcludeDecision Analysis Summary Components

Engagement Goal: during engagement summary interview between you and PTSC, definitive objective is drilled-down and summarized; this goal serves to guide PTSC throughout

Recommendation: high-level potentially-immediate endorsed action by PTSC, which is supported and informed by research-driven insights related to:

Valuation: current valuation metric using both corresponding discounted cash flow and market comparison methodologies

Market Position: current financial health according to range of indicators that drive premium valuations

Initiatives: proposed specific strategic actions for improving valuation and market position

Conclusion: synthesis linkage between the engagement goal and the strategic recommendation that explains current status and future action plan

Implementation Plan: detailed outline of recommended actions that are inspired by the previous strategic recommendation

Timeline: forecasted timeframe of the implementation plan on relevant short and long term basis

ConcludeDecision Report: Draw Conclusions from PTSC Deliverables

Synthesis of insights to inform potential growth & exit strategies

Decision Analysis Summary includes recommended actionable steps and implementation plan to reach engagement goal

Decision Report includes detailed frameworks and assumptions behind the recommendations made in the Decision Analysis Summary

Bi-Annual Revisionary Report to monitor changes in external market trends that continue to influence client decision-making

Features continued performance tracking of client’s business

Includes updated Decision Analysis Summary & Decision Report

Decision Report & Analysis Summary

Dynamic Update

ConcludeDecision Report Components

Engagement Goal Interview Summary: in-depth analysis of engagement discussions that allows PTSC to conclude final Engagement Goal

Structured Analysis Framework: breakdown of potential hypotheses tested to draw insights

Insight Determination: process of analysis and corresponding (exhaustive) explanations

Insight #1: detailed analysis and assumptions contributed to the first piece of analysis

Insight #2: detailed analysis and assumptions contributed to the second piece of analysis

Insight #3: detailed analysis and assumptions contributed to the third piece of analysis

Conclusion Determination: summary of findings and recommendations to client based on insight determination

Implementation Analysis: research and rationale behind suggestion implementation plan and timeline

ConcludeDynamic Update Report Components

Updated Decision Analysis Report: follow-up document that reveals how relevant new information has influenced the strategic recommendation; also includes:

Insight Reconsideration: relevant updated data that may guide insight adjustment

Implementation Progress: updated successes/failures of the proposed implementation plan and timeline; features necessary revisions based on new knowledge

Updated Decision Report: corresponding document to Decision Analysis Report that follows identical structure as previous Decision Report, yet provides relevant additional analysis to the Insight Reconsideration and Implementation Progress

Value PropositionInsight & PerspectiveOur ApproachWhy Choose PTSC?Selective Expertise

UnderstandResearchExpertiseService Capabilities

ConcludeDecision Analysis SummaryDecision ReportDynamic Update Report

DecideDraw ConclusionsGrowth StrategyExit Strategy

Getting Started

Decide

DecideDraw Conclusions from PTSC Deliverables

Growth Equity/Minority Investment

Debt

De-Risk Initiatives

Sales & RetentionInitiatives

Mergers & Acquisitions

Traditional Buy-OutMajority Buy-Out with Equity RollMinority Investment with OptionMarketing Positioning Initiatives

DecideGrowth Strategy

Growth Equity/Minority

Investment

De-Risk Initiatives

Minority Investment TargetingMinority Synergy Realization

DebtMergers &

Acquisitions Initiatives

Sales & Retention Initiatives

De-Leveraging InitiativesBalance Sheet Restructuring

Dependency Risk MitigationOperational Risk Mitigation

Enhance Sales StrategyCorrect Attrition Factors

Investment TargetingSynergy Realization

DecideExit Strategy

Traditional Buy-Out

Minority Investment with Option

Prepare for M&A (valuation, buyer targeting & marketing materials, etc.)Execute M&A (market assets, solicit proposals, due diligence & closing)

Majority Buy-Out with Equity Roll

Marketing Positioning Initiatives

Prepare for & execute M&AMonitor Equity Investment with KPI analysis & evaluation tools

Prepare for & execute M&AMonitor Equity Investment with KPI analysis & evaluation tools

Improvements to recurring revenue, Technology Index, margin, growth rate, etc.

Contact PTSC

Phone: (617) 849-8835

Email: info@prestontoddadvisors.com

In-Person: 358 Chestnut Hill Avenue, Suite 303, Boston, MA 02135

Ask Questions

See website for list of Frequently Asked Questions

Determine any relevant inquiries for PTSC prior to Engagement

Getting Started

Determine Engagement Terms

Arrange meeting/phone call to outline discussions of Engagement Summary Interview without legal violations

Finalize Engagement Agreement that is signed by PTSC and Clients

Commence Onboarding Process

Consultants receive proper client clearance (including NDA and other legal)

Official Engagement Start: Engagement Summary Interview