Envision 08 Entrepreneurial Vision Commercial Banking and The Young Company

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Envision 08Entrepreneurial VisionCommercial
Banking and The Young Company

• April 25th, 2008
• Mark Montgomery
• Sales Performance Executive
• Bank of America

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Mark W. Montgomery

• Hometown Houston, TX
• Hobbies Golf, Fishing, Hunting and Snow Skiing
• Education The University of Texas at Austin
• Married to wife Maura of 17 years
• 3 Children (John-15, Mary Catherine-13, and
  Robert-9)
• Mark has been a commercial banker for 24 years
  working with Allied Bank, First City National
  Bank, Southwest Bank of Texas and Bank of
  America. His experience includes credit training,
  workout lending, loan review and commercial
  lending. The past 18 years have been spent as a
  Senior Client Manager assisting middle Market
  companies realize their goals and objectives.
  Currently, Mark is a Sales Performance Executive
  with Bank of America covering 18 states in the
  Midwest and Southwest. His objective is to grow
  revenue by 10 per annum in both regions.

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The Young Company

• Should establish a relationship with a banker
  that they are confident can help
• Should over communicate, quarterly visits
• Should know the numbers and have excellent
  systems
• Should share their vision and utilize the bank to
  move toward the vision
• Banking is a relationship

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Risk

• Management Team
• Operating Model
• Business Segment
• Access to Capital (get it while you can)
• Based on our experience, a good management team
  can overcome a bad business cycle, a struggling
  operating model or troubled business segment.

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Financial Statements

• Whats Important?
• - Low Leverage Flexibility Access to
  Capital
• - Cash Flow (EBITDA) Breathing Room
• - Liquidity Margin for Error
• - Capital Commitment to the Business
• - CPA Prepared
• - Timely

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Porter Model

• The Threat of Substitute Products
• The Threat of the Entry of New Competitors
• The Intensity of Competitive Rivalry
• The Bargaining Power of Customers
• The Bargaining Power of Suppliers
• Be able to talk to these topics with your banker

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50,000

• What if a banker came to you, wanting to
  understand your business?
• Wanting to understand your goals, your vision?
• Wanting to find a way to save you 50,000 in
  expenses annually?

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Banker as Advisor

• What could it mean to have your Banker be an
  advisor to your business?
• Your Banker should Listen and Learn
• Your Banker should go beyond the numbers
• Your Banker should explain all of your options
• Your Banker should not push product, but offer
  solutions broader than a loan
• Connection, Service, Communication and common
  goals are the key

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Examples

• ATD very young
• Houston HF
• Dallas Merchant Card