SPEED SHEETSTM

Welcome to the “American Financial Group SPEED SHEET™ Demo” — this is where all the magic happens.  In this scenario, Financial Matrix, Inc, a business services vendor specializing in Risk & Compliance Management, implemented a SPEED SHEET™ to improve Sales & LDR Prospecting & Marketing ABM programs to break into a new account in their financial services vertical.

SPEED SHEET™ Example

Target Account: American Financial Group helps individuals & businesses manage financial risks with insurance products.

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.

Core Principles
Maintain focus on specialty niches, product line diversification, underwriting discipline, and business fundamentals. This has been the mantra of the company since inception, to facilitate growth of the core businesses at the forefront of the company and the marketplace.

Expand Footprint
Expand operations beyond U.S. borders in order to increase market share. Peers within the industry benefit from global footprints, driving revenue and profitability. Due to a crowded local market that is dominated by larger P&C providers, global acquisitions will provide the best opportunity to drive revenues.

Financial Offerings
Provide uncomplicated, consumer-centric annuities to build market presence. Easy to understand offerings drive customer understanding and satifsfaction, which in turn will increase market presence. Additionally, regulatory challenges and accounting responsibilities require financial products that can stand the test of time by regulators and consumers alike.

Acquisitions
Take advantage of industry and economic disruptions to allocate capital to businesses with the greatest return potential. Businesses that may not directly correlate to the P&C insurance cycle, or with each other, are still potential targets if the returns are greater than the investment.

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.

SPEED SHEETS are the ONLY A.I. driven business outcome sales intelligence tool (Patent Pending) to enable sales & marketing to build high-performing pipelines by uncovering & aligning a vendor’s financial value to individual target accounts strategic initiatives for more productive and rewarding decision maker engagements. Simply put, we help you sell more, faster and easier.

All Sales channels use SPEED SHEETS whether direct sales, indirect or partner sales, lead development reps (LDRs), business dev (BD), inside sales & professional services teams to generate more high-quality opportunities and supporting greater velocity to close. SPEED SHEETS helps marketing teams improve lead production, quality, and campaign effectiveness, especially when targeting new accounts and executives and decision makers.

“Understand Target Accounts” tab has your target account’s Actionable Financial Insights based on their corporate goals, initiatives and financial gaps insights, and how your products or services align and deliver value to them. It’s an internal sales & marketing section.

“Align Your Value” tab has the vendor’s Value Alignment Matrix, which shows how your products or services deliver business outcomes and financial value to the account and its decision makers. It’s an internal or customer facing sales & marketing section.

“Partner with the C-Suite” tab has your Value Hypothesis, a detailed, rolled up business outcome of the financial value you could deliver to the target account if you sold them all or part of your products or services. The value Control, Center does versioning & communications. It’s a client facing sales & marketing section.

The “ABM Messaging” tab has your “Messaging Control Center”, automated messaging dashboard for your outcome and client-facing communications.

Regardless of sales process, SPEED SHEETS accelerate multiple pipeline phases, starting with helping you:
a. Quickly understand Target Account goals, initiatives, and financial gaps and prospect top down establishing relationships based on value.
b. Build stronger opportunities aligning your business value getting to decision makers.
c. Communicate Value Propositions supported by business financial outcomes that outflank your competition.
d. Refine requirements deep & wide aligning the buyer committee to your product’s business outcomes.
e. Accelerate proposal acceptance justifying your costs, strategic alignment and justifications.
f. Close Decision Makers and sell larger deals using a C-suite value hypothesis.

SPEED SHEETS are NOT Product or Services specific. SPEED SHEETS deliver measurable financial intelligence that can be used by sales to start a conversation, further a conversation or simply map a strategy to penetrate a targeted account.

SPEED SHEETS support ALL vertical markets.

Each section of the SPEED SHEET supports your custom, outcome based value messages. Use the automated Messaging Control Center to build personalized executive messages; or cut and paste messages from the Understand Target Accounts, Align Your Value or Partner with the C-suite sections.

Every SPEED SHEET is custom-built for each vendor, its products and/or services and its target accounts. The data you receive is only for you. However, once you are a client, your database of SPEED SHEETS are kept online in our database for your access anytime you wish.

The day we receive your order, we schedule our onsite Value Workshop to determine your products or services business outcome value. This is typically within 2-3 weeks. Your SPEED SHEETS are then delivered within 10 days after the workshop.

The first step in our process is an onsite Value Workshop to develop your “Value Inventory”. Your Value Inventory and your prospect’s key initiatives (from their 10-K and Shareholder letter) are entered into our AI engine and aligned to provide the most comprehensive actionable intelligence available.

SPEED SHEETS are the ONLY solution that aligns your value with a prospect’s key strategic initiatives. Companies like Hoovers and D&B only aggregate data for you. You are then forced to dig through it for financial intelligence and then try to align your value to a prospect’s strategic initiatives.

We offer a maintenance program where your SPEED SHEETS are updated two (2) times per year, and available in your own private database.

A SPEED SHEET is the missing piece to your formal sales methodology. A SPEED SHEET is typically used as the first step in discovery. We provide the foundation for identifying a prospect’s stated goals (From their 10-K), strategic initiatives, and financial history. A SPEED SHEET is a roadmap to the strategic sale.

Non-public company SPEED SHEETS are a little more tricky. We will first determine the size of the company based on number of employees. Next, we use similar size organizations in the same industry to estimate financial information. We utilize public domain information to fill the gaps and provide actionable intelligence.

SPEED SHEET™ Example

Target Account: American Financial Group helps individuals & businesses manage financial risks with insurance products.

Value Alignment Matrix

Connect the financial value of your Products & Services. Align them to Target Accounts' goals, initiatives & gaps.
Stakeholders
Business
Reason To Buy
Desired
Business Outcomes
Industry Benchmarks (Validate Desired Outcomes)
Annual C-Suite Value (Likely)
Vendor Solution
CIO
CTO
Replace homegrown legacy systems
Improve system maintenance
Reduction of IT Costs
IT costs are 14% of Expenditures
15% Reduction in IT (COST)
$11.5M C-Suite Value
NXG
SVP Ops
CFO
Accounting
Maximize daily cash position
Increase rate of return on cash
Interest Coverage Ratio
Interest Rate of Return - 14%
10% Increase in Investments (Revenue)
$9.34M C-Suite Value
Dashboard
SVP Ops
CFO
Accounting
Reduce time and risk with reconciliation
Eliminate manual error processes
Reduction of SG&A Costs
SG&A costs are - 32% of Expenditures
20% Reduction in Risk Exposure (COST)
$4.12M C-Suite Value
Reconciliation
CFO
Improve stagnant premiums
Reduce write-off and reserves for losses / fraud
Recapture Lost Revenue
Write-offs - 1.6% of Premium Revenues
15% Increase in Recapturing (REVENUE)
$3.25M C-Suite Value
Workflow
CIO
CFO
EVP
CCO
Lower labor costs on auditing
Reduce qualifcations on audit report
Reduction of SG&A Costs
SG&A costs are 32% of Expenditures
20% Reduction in SG&A auditing (COST)
$1.9M C-Suite Value
Certification & Reconciliation
CIO
CFO
EVP
Reduce management report interpretation time
Improve management decision-making process
Reduction of SG&A Costs
SG&A costs are - 32% of Expenditures
15% Reduction in Management Labor (COST)
$1.15M C-Suite Value
Dashboard

1. Forecasting, specifically via Monte Carlo simulations, is integral to understanding the role that risk plays in Vendor value models. This technique allows for accurate value predictions through the use of historical data, subject matter expertise, experience, industry benchmarks, and the ability to draw inferences from thousands, or millions, of simulations. Using industry-standard forecasting software, Revenue Accelerators creates unique Target Account forecasting models focusing on those areas where VENDOR can provide the most value.

2. Value metrics are determined using conservative, likely, and optimistic scenarios.

SPEED SHEET™ Example

Target Account: American Financial Group helps individuals & businesses manage financial risks with insurance products.

Value Hypothesis

Present your value quickly establishing trust,
create opportunities, and close deals with Decision makers.
Financial Matrix, Inc. is pleased to provide the business leadership of American Financial Group a Value Hypothesis delivering several individually targeted opportunities to improve revenues and decrease costs, with a total potential of $52.9M in significant financial realization based upon the strategic application for Revenue Management, Auditing, and Business Continuity Solutions.
Business & Value Justification
Year 1
Year 2
Year 3
Year 4
Potential Revenue Growth
Recapturing Lost Revenue
$750,000
$2,125,000
$3,250,000
$6,125,000
Increase Investment Revenue
$2,635,000
$5,885,000
$9,340,000
$17,860,000
Revenue Improvement Potential
$3,385,000
$8,010,000
$12,590,000
$23,985,000
    Value Factor Adjustment
45%
75%
100%
Total Revenue Improvemement Potential
$1,523,250
$3,604,500
$5,665,500
$10,793,250
Operating Expense Benefit *
Margin Improvement 
Margin from Revenue Growth
$65,000
$80,000
$110,000
$255,000
Cost Reduction
Reduction in IT Costs
$5,250,000
$8,540,000
$11,528,000
$25,318,000
Reduction in Auditing Expense
$900,000
$1,450,000
$1,900,000
$4,250,000
Reduction in Management Labor
$325,000
$780,000
$1,115,000
$2,220,000
Risk Avoidance
Improvement in Risk Avoidance
$1,680,000
$2,995,000
$4,115,000
$8,790,000
Reduction in Operating Expenses
$8,220,000
$13,845,000
$18,768,000
$40,833,000
    Value Factor Adjustment
45%
75%
100%
Total Operating Costs Reduction Potential
$3,699,000
$10,383,750
$18,768,000
$32,850,750
Realized Value Benefit
Total Investment, Initial Investment:
$400,000
$560,000
$140,000
$120,000
$820,000
Payback, in Months
4.8
3.2
3.1
Net Present Value (NPV) (Hurdle Rate 5%, provided by AFG)
$52,151,500
Return on Investment (ROI)
5322.44%
Decision Delay Cost (90 days)
$4,219,027
SG&A Impact
$40,833,000
Margin % Impact 
12%
Realized Value Benefit Annually
45%
75%
100%
Totals (Bottom Line)
$5,222,250
$16,391,250
$31,358,000
$52,971,500
* This changes based on Revenue reductions, COGS, or SG&A
  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

Jeff Consolino, Executive Vice President & Chief Financial Officer  Joseph E. (Jeff) Consolino has been the Executive Vice President, Chief Financial Officer at AFG since 2013 and has been its Director since 2012. From 2006 to 2013, Mr. Consolino was the President and Chief Financial Officer of Validus Holdings, Ltd., a reinsurer based in Bermuda. Prior to joining Validus, he served as a Managing Director in the investment banking division of Merrill Lynch, specializing ininsurance company advisory and financing transactions. Mr. Consolino also serves on the Board of Directors of Validus, as the Chairman of the Board of National Interstate Corporation and as a Director at AmWINS Group, Inc., a wholesale insurance broker based in North Carolina.

Michelle Gillis, Vice President – Internal Audits  Michelle A. Gillis has been the Vice President, Internal Audits AFG since 2013. Since 2012, Ms. Gillis served as the Vice President and Chief Administrative Officer of the Company with responsibilities for human resources, corporate communications, real estate and various shared service areas. Prior to this role, she served as the Vice President overseeing human resources. Since joining Great American Insurance Company in 2004, Mr. Gillis held various senior human resource management positions. Previously, she spent several years in senior human resources roles in the financial services sector.

Christopher Miliano, Executive Vice President – Annuity Operations  Mr. Miliano has served as the President and Chief Executive Officer of the JFP Group, a real estate investment and development company, from 2005. Mr. Jacobs has served as the Chairman and Chief Executive Officer of Jamos Capital, LLC, a private equity firm specializing in alternative investment strategies from 2008. Since its founding in 1996 until 2005, Mr. Jacobs served as the Chairman and Chief Executive Officer of Regent Communications. He currently serves as a Director at Global Entertainment Corp and serves on the Board and Executive Committee of the National Football Foundation and College Hall of Fame, Inc.

Messaging Control Center
The Messaging Control Center provides multiple ABM and Prospect specific value messaging with its SPEED SHEET integration. Simply select your message criteria for campaigns, meeting acquisition, 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: 
 
 

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Demo