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Publicly Fit: Building an Infrastructure Ready for Growth

Publicly Fit: Building an Infrastructure Ready for Growth. What do we mean by publicly fit companies?. 1. A private company that voluntarily chooses to enhance business operations and compliance standards to increase opportunities and to enhance overall enterprise value.

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Publicly Fit: Building an Infrastructure Ready for Growth

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  1. Publicly Fit: Building an Infrastructure Ready for Growth

  2. What do we mean by publicly fit companies? 1

  3. A private company that voluntarily chooses to enhancebusiness operations and compliance standards to increaseopportunities and to enhance overall enterprise value.

  4. Benefits of Becoming Publicly Fit Facilitates financial transactions Secures key partnerships or joint venture opportunities Increases current value Secures top board members Increases recruiting potential for top talent Protects from accusations of wrongdoing and other external scrutiny

  5. What’s different about Weaver’s approach to building a Publicly Fit company? 4

  6. At Weaver, we begin with the end in mind and we adapt our approach to fit your company’s needs and timeline.

  7. Our Approach • We first build a foundational plan • Addressing most pressing needs first • Focusing on processes touched by the most people • We use Weaver’s exclusive building-block approach • Moving through all systems and processes systematically • Leveraging a phased approach, which is least disruptive to your company

  8. Timing & Resources • Typical process is 1-3 years • Timeline is on your schedule • Proactive vs. in response to an event • Possible to shorten the process to just a few months • Costs increase as the timeframe shortens • As timeframe shortens, the strain on your company increases • Small companies with limited resources are eligible • This process complements — not crushes — an entrepreneurial culture

  9. Steps to Becoming Publicly Fit The Five Steps to Becoming Publicly Fit: • Enhancing financial reporting capabilities • Implementing a risk assessment process • Developing corporate governance practices • Enhancing and strengthening internal controls and information technology systems • Creating procedures compliant with Securities and Exchange Commission (SEC) reporting rules

  10. Enhancing Financial Reporting 9

  11. THE CLIENT: A rapidly growing company that has been through four recent acquisitions; as a result, it lacked critical standardized, recurring financial practices THE CHALLENGE: “We have a goal to grow our $250M company to $1B in just 18 months, but our lack of standardized financial practices is holding us back.”

  12. Enhancing Financial Reporting

  13. Enhancing Financial Reporting Outcomes: • Accurate and timely financial reporting • Instilled public company culture • In-house expertise for public company reporting • Robust and flexible systems • Analyze data in different ways • Gain additional business intelligence • Necessary foundation for growth

  14. Implementing Risk Assessment Processes 13

  15. THE CLIENT: A complex and growing financial services company operating in a highly regulated industry THE CHALLENGE: “Our external auditor recommended that we put a formal risk assessment process in place and implement an internal audit function. The auditor is conflicted out; we need help.”

  16. Implementing Risk Assessment Processes

  17. Implementing Risk Assessment Processes Outcomes: Processes that accurately and proactively measure risks Accurate understanding of the company’s risk tolerance An ability to make informed decisions that help mitigate risks An ability to monitor risk and verify compliance through internal audit and communicate effectiveness to external audiences

  18. Developing Corporate Governance Practices 17

  19. THE CLIENT: An industrial manufacturing and design group backed primarily by the owner’s investment THE CHALLENGE: “We’re looking for a capitalization strategy to improve the company’s value. We’re seeking outside investors so the owner can sell a portion of the company to recoup his personal investments.”

  20. Developing Corporate Governance Practices

  21. Developing Corporate Governance Practices Outcomes: • A formalized corporate governance structure • Installed delegated executive management team • Tone at the top • Clear expectations for performance and behaviors across the organization • Formalized entity-level processes and procedures • An independent Board of Directors

  22. Enhancing Internal Infrastructure 21

  23. THE CLIENT: A growing company with a legacy accounting system and manual internal control processes; they relied primarily on trusted individuals combined with workarounds and patchwork solutions THE CHALLENGE: “We’d like to continue our rapid market expansion but our internal control system simply won’t support our progress.”

  24. Enhancing Internal Infrastructure

  25. Enhancing Internal Infrastructure Outcomes: Scalable and reliable technology-based personnel and business processes Defined personnel roles with enforced segregation Strong and effective entity- and processes-level internal controls A solid foundation for SOX-compliant corporate governance

  26. Accommodating Compliance Requirements 26

  27. THE CLIENT: Aprivate equity firm that recentlyinvested a large amount in a rapidly growing retail company THE CHALLENGE: “We’d like to go public to recoup our recent retail investment. We have strong financial reporting and leadership, but public company standards require even more rigorous reporting. We need help getting there.”

  28. Accommodating Compliance Requirements

  29. Accommodating Compliance Requirements Outcomes: Robust financial reporting capabilities compliant with SEC reporting rules and regulations A formal process to disclose material transactions Management trained in preparing data for financial reporting Processes that meet regulatory and independence requirements

  30. About Weaver

  31. About Weaver • Largestindependent accounting firm in the Southwest • Seven offices across all major Texas markets • Approximately 500 professionals and 60+ partners • Consistently ranked as a top firm nationally and regionally • Named on the 2012 BEST of the BEST Firmslist by INSIDE Public Accounting • Ranked #8 Largest North Texas Accounting Firm by the Dallas Business Journal • Named on the 2013 All-Star Firm andFastest Growing Firm lists by INSIDE Public Accounting • Ranked in thetop 50 firms nationallyby INSIDE Public Accounting and Accounting Today

  32. About Weaver • Continuing focus on delivering leading edge solutions and best-in-breedservices • Weaver professionals have broad experience in multiple industries – we can help you incorporatebest practices and lessons learned from other successful Texas companies • Committed to long term strategies and solutions • We help organizations evolvefrom being risk-responsive to having a controls environment that serves as an operational and business enabler • Complete range of services to support the entire lifecycleof growing companies

  33. Questions Contacts: Alyssa G. Martin, CPA, MBA Advisory Partner 817.882.7724 Alyssa.Martin@Weaver.com Dale J. Jensen, CPA, CFE Assurance Partner 972.448.9283 Dale.Jensen@Weaver.com

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