" "Current Turbulent Times": Navigating Your Business Successfully Through The

IT Serve Alliance –Houston Tx Chapter
United, we serve the “Businesses Better”
“Navigating your Business Successfully

through the “Current Turbulent Times”
By
Pund L Narasimham
Chief Mentor, STS Worldwide Inc,
Atlanta, GA,30009, USA
Date: September,13th, (Thursday) 2018

Venue: Holiday Inn,11160 Southwest Fwy, Houston Tx, 77031
Starts at 6.30PM
|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

We can solve all our problems by “Merging into a large entity”
way
“Apollo 13” was rescued by NASA
(A Mission impossible)
“Whereas IT Company Challenges are much easier to fix”

Our Current Challenges are
 Changes with the US immigration Law,
 Affecting survival of our Business
This can be solved for sure – if we can become “One Big Company”
Compare this to the Crisis in the Lunar module, “Apollo 13” Space Craft

United we will all Succeed, divided we will fall

What is the solution ?
All current challenges faced by members can be solved with one simple formula
Replace
“Competition” “Collaboration”
with

Companies must be creative, innovative and
Work together closely as “One Team”
To solve our current Industry Challenges

Let us define the problems faced by
IT Serve member companies
Immigration Collection Issues Sleepless Nights
Low morale of Consultants Declining revenues Declining profits

& Employees
What is the solution, that will bring results
The IT Serve Alliance way

Yes, there are proven solutions that can bring results
Why Mergers & Alliances and Not Acquisitions

Here is the solution to your burning issue ?
Mergers & Alliances
Mergers are transactions in which the ownership of many companies,
are consolidated into one large platform entity which is managed by a Board
consisting of all the “Business Owners” who have merged together.
No Acquisitions
“Can deliver low-cost financing for merged IT companies
& also increase bottom line profits for all merged companies
by taking advantage of “Economies of Large scale operations”
Banks & Financial Institutions can be leveraged to get “low cost of “Borrowing” and
also all the Service providers like Medical Insurance, business insurance, offshore
centers Consolidation, employee benefits, job portals and Internet services
IT Serve members companies forming a financial “Roll-Up Strategy”

To leverage a large P&L and Balance Sheet of the parent while maintaining
operational independence, & improve bottom-line profits.

Advantages of Mergers & Alliances
Joining an established platform – equity swap-no
selling (you are now a part owner)
Mergers vs. Acquisitions
Better Stability
Access to more Direct Clients
Management Support
Growth Funding at lower Interest rate
Geographic Footprint
 Valuations will increase from 3X to 9x

End Goal – Maximize exit valuation – of your company
Move from 3 Times EBIT to 9 Times EBIT?
Will get triple the valuation through Merger
Merging to form a 100M + Entity – Valuation will
Value Creation to increase due to shear size of merger entity
Share holders
Mergers are a big success as opposed to acquisitions
because
Acquisitions – Seller exits after a short period of time
Seller loses ownership in company
Valuations – are Low for Acquisitions
 There is no future potential for post Acquisition

- North East Based Investment firm
- STS started the efforts 1st Quarter 2017
- Current Revenues 145 Million USD
- 8 Merger Targets into financial roll up
- Currently in place a Large Line of credit with
Mergers & Alliances
Low cost of “Borrowing”
(Case study) - Achieved Back office consolidation to Tier-3
City in India
- Addressing the challenges of 8 Business owners
Working together
-End Goal to Exit at 300 Million revenue USD
with 8X to 10X Valuation
-One more financial “Roll up” currently taking shape at Dallas Tx
-Another “Merger” Alliance at Atlanta GA
- A greater New Jersey “Merger” currently being put together

Mergers & Alliances
(Case study) - A Chicago based “Rolled up” entity pooled in 3M investment
( 4 Member Companies) to Leverage a Bank & buy a “Target”,
with all direct clients

IT Serve Alliance – Atlanta Chapter
United, we serve the businesses better!
Creative financing options

for IT Serve Alliance members
19th July 2018 Meet

By
Venue – Sankranti Restaurant
2000 Ray Moss Connector
Deepak Narasimham
Johns Creek, GA 30022 President, STS Worldwide Inc,
" Creative Funding options for IT companies "
To Help IT SERVE Members
Need of the hour for all IT serve member companies is creative growth funding options that
can be made available quickly, to address your current challenges, such as:
1. Cash flow issues due to delayed customer payments
2. Emergency Reserve funds to handle contingencies

What is the solution ?? (to your cash flow problem)
Lesson learned from Uncle Sam -
America thrives and grows on OPIM
(other people’s money) not OPIUM
You must implement creative funding options to manage your cash flow and manage your
emergencies.
This is especially relevant to all companies based on the current market conditions within the
IT Staffing & Solutions Industry.

Why cash flow is king - for IT companies

1. Equity based funding

2. Debt based funding
3. Mergers & Alliances
4. Asset based funding
5. Non Collateralized funding
6. SBA & SBA Express Funding

Collateralized Loans
1. Unbilled time sheets & past ninety invoices
2. Intellectual Property
3. Accounts receivable
4. Purchase orders
5. Inventory
6. Personal assets
7. Leverage P&L / Balance Sheet
Non Collateralized Loans
1. Term Loans
2. Bridge Capital
3. Working Capital
4. Cash flow based Loans
5. Lighter Capital Loans
6. Air Balloon ( Stretch peace)
Recent Funding Transactions
• January 2018 - Northeast Based IT Staffing Company, arranged a 500K ABL
+ 200K uncollateralized facility
• March 2018 - Midwest Based IT Solutions Company, arranged a senior
secured debt of 1.5M consisting of 1.2M ABL + 300K uncollateralized
facility
• June 2018 – Northeast Based IT Solutions Firm, arranged for a 250K
Express SBA Loan for internal working capital
• July 2018 - NASDAQ Listed Company, arranged a 5M combined credit
Facility including both ABL & Uncollateralized
• July 2018 – Southeast Based Company, arranged for a 2.5M combined
credit facility with 2M ABL and 500K second lien debt. Purpose of this
credit facility was to finance acquisition of two companies. We assisted
the buyer to finance the acquisitions with 0% cash down payment.
Deepak Narasimham
President, STS Worldwide Inc,
Email: deepak@stsworldwide.us
cell: 770-689-8880

The Time is very ripe and it is critical now
for all IT Serve member companies to focus on
Value Creation to A modified financial “Roll-Up Strategy”
Share holders so that all member companies can become
strong and survive through the current challenging
times and still continue to grow
While maintaining Independence

We must get challenged to become successful ???
When the going gets tough, the tough will get going
- President Regan

"Alone we can do so little; together
we can do so much."
Helen Keller
The IT Serve Alliance way

IT Serve Alliance – Atlanta GA, Chapter
United, we serve the “Businesses Better”
“ Transitioning of IT Serve Consulting Companies to

IT Product Companies with higher valuations "
By HARVEY SHUSTER
Strategic Growth Consultant, STS Worldwide Inc
Aug.23, 2018. Meet

Venue: Sankranti Indian and Intercontinental Fine Dining Restaurant & Banquet.
2000 Ray Moss Connector, Johns Creek, GA 30022

How do you move up your company valuations
from
3X EBITA To 3X revenues

IT Service sector is Highly Crowded

The future of your company success is to
create innovative products to solve your
customer problems

Various options to current IT Serve members.
You can invest your available funds into a current
product company ( take equity position)
You can exit the current IT staffing domain, cash out

and re-invest it into a product company
STS team can review your (own ) existing products that you may
have built, suggest next steps
Perform a SWOT analysis of your company & evaluate suitability to move

into the product domain.
"Nothing ever happens on it's own,
unless we step in as a group, roll up our sleeves
& join hands”
to make things happen,

Whatever it takes
“so as to derive the results that we want and of course benefit

from our group effort"

“We will create Success for your company
by living up to IT Serve members Alliance

IT Serve Alliance Created for us to “Co-exist”

Pundi L Narsimham
Chief Mentor, STS Worldwide Inc,
Email:pundi.narasimham@stsworldwide.us
cell: 770-689-8880

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IT Serve Alliance –Houston Tx Chapter

United, we serve the “Businesses Better”

“Navigating your Business Successfully

Date: September,13th, (Thursday) 2018

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

“Whereas IT Company Challenges are much easier to fix”

 Affecting survival of our Business

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

To solve our current Industry Challenges

Immigration Collection Issues Sleepless Nights

Low morale of Consultants Declining revenues Declining profits

The IT Serve Alliance way

Why Mergers & Alliances and Not Acquisitions

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

IT Serve members companies forming a financial “Roll-Up Strategy”

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

 Valuations will increase from 3X to 9x

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

-Another “Merger” Alliance at Atlanta GA

- A greater New Jersey “Merger” currently being put together

(Case study) - A Chicago based “Rolled up” entity pooled in 3M investment

( 4 Member Companies) to Leverage a Bank & buy a “Target”,

with all direct clients

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

Creative financing options

19th July 2018 Meet

1. Cash flow issues due to delayed customer payments

2. Emergency Reserve funds to handle contingencies

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

1. Equity based funding

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

While maintaining Independence

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

The IT Serve Alliance way

United, we serve the “Businesses Better”

“ Transitioning of IT Serve Consulting Companies to

Aug.23, 2018. Meet

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

You can exit the current IT staffing domain, cash out

Perform a SWOT analysis of your company & evaluate suitability to move

to make things happen,

“so as to derive the results that we want and of course benefit

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

|Atlanta GA|Washington D.C| San Francisco CA |Austin TX |Houston TX|Princeton NJ|Bangalore|Chennai|

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