SPEED SHEET

Welcome to the “Global Healthcare Providers Speed Sheet™ Demo” — this is where all the magic happens.  In this scenario, Backup & Restore, Inc, a cloud storage vendor, implemented a SPEEDSHEET™ to improve Sales & LDR Prospecting & Marketing ABM programs to break into a new account in their healthcare vertical.

How to use: Sales Messaging • ABM • Get the Meeting • Close the Deal

TARGET ACCOUNT: GLOBAL HEALTHCARE PROVIDER improving the health of the community through health insurance solutions for the under-insured and uninsured, and through specialty services that aligns with their focus on whole health.

Actionable Financial Insights

Vendor's solution aligned to Target Account objectives & initiatives
Corporate Objectives
(KPI)
Benchmarks
(Current State)
Business Initiatives
&
Value Driver
Objectives & initiatives aligned to Vendor insights
Revenue Growth
Growth Rate:

5.43%
* Industry: 8.78%
* Sector: 9.5%
Core Principles

Write-off improvement
1. AFG's revenues have risen by an average of 7.8% the previous three years, reflecting earnings in their core businesses - annuities and P&C insurance. While these revenues are historically strong for the company, they are declining more than 2% each year to a current 5.4% increase for 2016, well below sector average. This is in part due to customer retention and customer acquisition rates remaining stagnant; new customers cannot have the same impact on revenue if the existing customer base is leaving the company

2. Although planned acquisitions in the near future will certainly drive revenue up, Financial Matrix, Inc can focus on reducing AFG's current write-offs. This will ensure the existing customer base will remain profitable, and AFG can recapture funds kept in reserve for write-offs due to losses and fraud. Financial Matrix, Inc's Workflow solution will accomplish this by providing a more intuitive and efficient means of customer interaction, which will drive customer satisfaction and retention. Financial Matrix, Inc's Value Capability: Improving customer interaction, lowering write-offs (business initiative).
EBITDA1
Current margin:

17.89%
* Industry: 16.73%
* Sector: 32.64%
Core Principles

Lower SG&A costs
1. EBITDA remains on par with AFG's competitors in the Property and Casualty Insurance industry. One recent trend, however, is that there has not been a direct correlation between higher EBITDA resulting in higher revenues. This indicates a wide range of variability within both SG&A categories and income from premiums.

2. Financial Matrix, Inc can sell into this variability to reduce SG&A costs. One area is in independent auditing services. The company has spent an averag of $9.52 million each of the two previous years on a independent auding services and Sarbane Oxley financial opinions. While this is a necessary funciton of all public companies, Financial Matrix, Inc's Certification and Reconciliation solutions can reduce internal labor charges and the number of qualifications on the audit report, while also reducing exposure to risk and SG&A costs (business initative). Additionally, as AFG increases acquisitions, they can continue to deploy these same solutions to seamlessly incorporate and integrate new businesses and streamline auditing processes by lowering auditing expenses while improving qualification rates (business initiative).
Free Cash Flow2
Fiscal year:

$624M
* 2015: $428M
* 2014: $380M
Expand Footprint, Acquisitions

Increase revenue
1. For the past three years, AFG's cash flow has seen steady growth. In 2016, the company returned $320 million to shareholders, and they currently have a stated $950 million in excess capital. Expect significant, near-term acquisitions, and the need to manage and assimilate the associated costs.

2. While cash flow has remained higher than industry standards, AFG has recently been trending lower in the 3 most recent quarters. This should allow Financial Matrix, Inc to demonstrate the need for streamlined management and operations services. Financial Matrix, Inc's NXG and Dashboard solutions will help control to labor costs, improve management reporting functions, and improve the acquisition management process and acquistion funtions; thereby improving Free Cash Flow to help drive profitability (business initiative).
Interest Coverage Ratio3
Current ratio:

13.43
* Industry: 7.08
* Sector: 3.08
Acquisitions, Financial Offerings

Improve EBITDA
1. AFG is very close to doubling the industry standards, and their current ratio is historically high when looking at their own financial history. In addition, AFG's combined ratio comparing losses and expenses to premiums remains 6.7% better than industry. Over the previous two quarters, the interest expense ratio has trended higher by an average of 23%. This indicates recent debt payoffs that improved the company's ability to take on more debt.

2. AFG remains in a strong position to expand their business both locally and abroad. Expect any acquisition of Financial Matrix, Inc's products to negligibly impact AFG's ability to pay for them or future acquisitions. In fact, Financial Matrix, Inc's Workflow and Dashboard solutions can further streamline AFG procurement functions by improving acquisistion funtions; while also ensuring these new business endeavors remain profitable, increasing revenues (business initiative).
Working Capital4
Current working capital:

$563M
Core Principles
Reduce current liabilities
1. AFG currently has a solid working capital ratio at 6.06, which is good for 8th best in their industry. Year-on-year liabilities growth has been only marginally higher than the corresponding year-on-year asset growth, which is keeping the ratio low. While this demonstrates solid financial fundamentals, it also shows a lack of recent history with regards to acquisitions. As AFG begins its intended push to increase their footpring nationally and globally, expect current liabilities and expenses to go up.

2. Financial Matrix, Inc's Certification and Reconciliation solutions are a great match for AFG's endeavors by keeping SG&A costs low throughout thre acquistionprocess; such as auditing expenses by reducing exceptions and labor costs by eliminating internal manual reconciliations. Freeing up funds that were previously used in operating expenses will allow AFG to acquire new businesses and drive revenues up.

1. EBITDA - Earnings before interest, taxes, depreciation, and amortization; basically Operating Income (Rev - (COGS + Operating Expenses)).

2. Often called owner earnings - used to determine whether a company has the cash to invest in the business, pay dividends, or buy back stock.

3. This is an indicator of whether Centene can take on more debt. Too close to 1 indicates they cannot make their interest payments. A higher number means they can afford to take on more debt. In other words, it measures the margin of safety a company has for paying interest during a given period, which a company needs in order to survive future (and perhaps unforeseeable) financial hardship should it arise.

4. Working capital is Current Assets minus Current Liabilities. Working Capital is the money a company needs to finance the daily operations. If this figure is too low, they don't have the means to run the business and must borrow funds. Anything below 1 indicates negative W/C (working capital). While anything over 2 means that the company is not investing excess assets. Most believe that a ratio between 1.2 and 2.0 is sufficient.

Operational Improvements
Scale and Diversification with IT alignment to Improve Operating Efficiencies.  Backup & Restore, Inc.’s Storage solution will provide these efficiencies through automation of routine and transactional processes, reducing redundancy and errors, and maintaining data accuracy and consistency.
Integration and Resiliency
Interpret acquisition; build integrated patient care platform; streamline workflow; mitigate adverse events.  Backup & Restore Inc.’s Storage and Backup solutions can directly benefit GHP by helping to increase their bottom line and better position them for future acquisitions.  The Storage solution will help GHP to integrate new acquisitions seamlessly into established data repositories, while.  The Backup solution will allow GHP to identify high-risk processes that need to protected and mitigated through routine backups.
Portfolio Growth
Create a leading diversified Multi-national Enterprise.  As GHP grows their global brand, Backup & Restore Inc. can provide vital assistance to ensure that revenue growth matches portfolio growth.  The Retention solution will ensure that GHP’s base remains strong while reducing attrition rates of new acquisitions.
Investment Integration
Integrate Health Company (18 months) for government-sponsored revenue: Medicare, TRICARE & the Veterans Administration.  Healthcare Company represents a major challenge to GHP to maintain healthcare costs, which could drive down EBITDA if they are not planned for and mitigated.  Backup & Restore Inc.’s Storage solution will provide cross-platform efficiencies to counteract the potentially higher cost-of-sales associated with government contracts.These corporate initiatives are derived from an analysis of recent and applicable financial statements, including the 10K, 10Q’s, letters to shareholders, and other public domain sources.  They are sorted in order of priority for Backup & Restore, Inc and aligned to GHP’s key financial performance metrics where Backup & Restore, Inc will deliver their solution value.
How to use: Sales Messaging • ABM • Get the Meeting • Close the Deal

VALUE ALIGNMENT MATRIX: Connects the value of Backup & Restore, Inc’s solutions to the prospects balance sheet and budget holders (C-Suite) in terms of cost reduction or revenue increase.

How to use: Sales Messaging • ABM • Get the Meeting • Close the Deal

PARTNERING WITH GLOBAL HEALTHCARE PROVIDER: Backup & Restore, Inc is pleased to provide the business leadership of Global Healthcare Provider a Value Hypothesis delivering potentially $60.2M of significant financial realization based up the strategic application for Data Management, Recovery and Business Continuity Solutions.

Value Hypothesis

Present your value quickly establishing trust, create opportunities, and close deals with Decision makers.

  1. The Payback Period is the the amount of time it will take to recover the cash invested in a project and is calculated using the resulting cash flows. When the cash investment is significantly smaller than the projected cash flows, a conservative approach will be to add a fiscal quarter to the result.
  2. Using the company’s cost of capital, NPV is sum of discounted cash flows minus original investment. In capital budgeting hurdle rate is minimum rate a company expects to earn when investing; or required return or target rate.
  3. ROI is usually expressed as a % used to compare a company’s profitability or to compare the efficiency of different investments. The return on investment formula is: ROI = (Net Profit / Cost of Investment) x 100.
  4. Cost of Delay is the impact of time on business outcomes; it combines an understanding of value with how that value leaks away over time. Faster decisions mean Value is delivered sooner.
  5. SG&A refers to Selling, General and Administrative Expenses; a “major” non-production cost presented in an income statement. A key measurement for any corporation. A 1% reduction is strategic to a Decision Maker.
  6. Margins help businesses assess how much of their revenue they keep; Margin analysis helps identify what efforts are improving the amount of profit is being brought in by Investments.
Value Control Center
Save & send versions of the value hypothesis.
Save: 
 
Select: 
Send: 
   
Share: 
 
How to use: Sales Messaging • ABM • Get the Meeting • Close the Deal

Stephen Harcourt, 47, SVP/CIO, sharcourt@ghp.com. Lives in CA, attended school in San Bernardino, CA, and graduated from the University California at Los Angeles with an MBA. Work history includes Anderson Consulting as Regional and Corporate Director of Commerce, and Global Healthcare Providers as Senior Director of Commerce and Senior Director of Information Technology. Responsible for the development and delivery of a comprehensive information security strategy and framework to optimize the security posture of the organization, and leads the development and implementation of a security program that leverages collaboration, facilitates information security governance, advises senior leadership on security direction and resource investments, and designs appropriate policies to manage information security risk.

Robert Jamison, 44, CFO/EVP, rjamison@ghp.com. Currently lives in California, he is from Missouri and graduated from the University of Missouri with an MBA. Is on the Board of Directors for the St. Louis Equity Fund & Contractors Loan Fund.  Completed $4B acquisition of Healthcare Company. Responsible for planning, developing, organizing, implementing, directing, and evaluating the organization’s fiscal function and performance, as well as participating and advising in the organizations development of strategic long range planning, introduction of new programs and strategies, and providing timely and accurate analysis of budgets, financial reports, and financial trends.

Operational Improvements
Messaging content here…

Integration and Resiliency
Messaging content here…

Portfolio Growth
Messaging content here…

Investment Integration
Messaging content here…

Health cash flow provides opportunities to invest in the company. Buy stock, pay off debt, etc.

Calculation: Cash from Operating activities – Capital expenses

In most industries, a current ratio is too low when it is getting close to 1. This means they can barely cover the liabilities that will come due with the cash they have coming in. Most bankers won’t loan money to a company with a current ratio near 1. Less than 1, is way too low, regardless of how much cash they have in the bank. If less than 1 they will likely run out of cash by the end of the year. A current ratio too high means they are sitting on cash rather than investing it or returning it to the shareholders.

Calculation: Current assets / Current Liabilities

When this number is too close to 1 it indicates, they can’t make their interest payments. The higher the number the more debt they are able to take on.

Calculation: Operating profit/Annual interest paid

DSO is the average number of days that a company takes to collect revenue after a sale has been made. A low DSO means that it takes fewer days to collect your accounts receivable. A high DSO means that a company is selling its product on credit and taking longer to collect payments.

Calculation: Accounts receivable ÷ Total Credit Sales * Number of Days

Used to assess a company’s profitability by comparing revenue with earnings. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization.  

Calculation: EBITDA ÷ Revenue

This ratio is used as a relative measure of debt. In other words, what you owe in relation to what you own.  The two components in the calculation–i.e., total liabilities and total equity–come from the Balance Sheet.

Calculation: Total Liabilities ÷ Total Equity

Once again, this metric is one of the most affected when calculating value delivered. If your value increases revenue or reduces labor cost, it will positively affect it.

Calculation: Total Sales ÷ Total Payroll Expense

This simple calculation is important because our research indicates that the majority of value delivered by organizations is a reduction in labor cost. The average U.S. Corporation keeps this figure around 20 percent – 23 percent depending upon the market they serve.

Calculation: Total Payroll Expense ÷ Total Revenue

Net profit margin is the bottom line – the amount you have left after every other expense is taken out. Gross profit margin is your revenue minus what it costs to make your product.

Calculations: Net Profit margin = Net pretax profit ÷ Revenue, and Gross profit = Gross profit ÷ Revenue

Operating costs are the day to day expenses incurred in running a business. For example, cost of sale or administrative costs are considered operating costs.  Production costs are not considered operating costs.

Earnings is revenues minus cost of sales, operating expenses, and taxes over a given period of time.

Calculation: Earnings = Revenue – (Operating expense + taxes)

Sometimes called, “Return on net worth”, ROE measures a corporation’s profitability by revealing how much profit it generates with the money shareholders have invested. Displayed as a percentage, ROE is useful for comparing the profitability of a company to that of other firms in the same industry.

Calculation: ROE = Net Income ÷ Shareholders Equity

ROA is an indicator of how profitable a company is relative to its total assets. The assets of a company are comprised of both debt and equity. The ROA percentage gives investors an idea of how effectively the company is converting the money it has to invest into net income. It is most effective to compare current ROA to previous year ROA. The higher the ROA percentage, the better, because the company is earning more money on less investment. For example, if one company has a net income of $10 million and total assets of $50 million, its ROA is 20 percent ($50M / $10M); however, if another company earns the same amount but has total assets of $100 million, it has an ROA of 10 percent. Based on this example, the first company is better at converting its investment into profit.

Calculation: ROA = Net Income ÷ Total Assets

Messaging Control Center
The Messaging Control Center provides multiple ABM and Prospect specific value mesaging with its SPEED SHEET integration. Simply select your message criteria for campaigns, meeting acquistion, sales calls, presentations, proposals.... and it automatically generates Email, LI InMail, Voicemail and Direct Mail. for Marketing and all Client-facing and LDR teams.
Select Business Initiative: 
Select Target Leadership: 
Select C-Suite Value: 
 
     
Save ABM Message: 
 
Select ABM Message: 
 
 

The SPEED SHEETS represent a paradigm shift in improving access and engagement with decision makers and executives at your target accounts. SPEED SHEETS are the ONLY product to uncover and monetize your products and services value, then align it into your target accounts initiatives building trust and engagement with your buying committee, decision makers, and C-Suite. They support any and all Products, Solutions & Services, and regardless who you sell to, whether Information Technology (IT), Finance, Manufacturing, Marketing, Procurement or any Business unit.

FOR SALESAccount Executives (LDR’s, Inside Sales, Channel, and Professional Services) use VMs (Value messaging hover-overs) on each TAB to create value-based 1:1 messaging and content differentiators supporting trusted advisor status for:

  • Account plans, Meetings, Qualifying, Discoveries, Presentations, POC,s Proposals, RFPs, Negotiating on value, etc.
  • Helps Prospect & Customers distinguish you as a trusted resource.
  • Saves 90% of buying executives time internally justifying your Products & Solutions.

EMAIL PERFORMANCE: customers have access to SPEED SHEETS email templates by “title” of your Target executive for maximum impact. They help to easily deploy the multiple “value messaging points” throughout your SPEED SHEET for more meetings, engagements and deal velocity.

FOR MARKETING: The SPEED SHEET quickly and easily optimizes ABM supplying your Products & Services unique value for 1:1 messaging across all decision makers up to the C-suite.

  • Numerous areas in each TAB support your specific value messaging and assets.
  • Quickly boost campaigns, case studies, sales plays, blogs, and just about any client-facing content.

FOR SALES OPSThe SPEED SHEETS are easily placed inside SF and any CRM to reinforce positive sales attributes, sales process, and helps sales ops status as a strategic partner with sales and marketing.

* SPEED SHEETS is Patent Pending.

Demo