IPPA 22 September 2016 New Orleans Pulse of the Industry IPPA 22 September 2016 New Orleans

State of the Economy There is one US is growing at 2%, get used to it

What is happening TO the Industry Technology is changing the environment Human Capital Management has become real from organizational design, to hiring, to taking care of and retiring employees

What is happening IN the Industry Technology changes the speed of change Capital is needed Service providers dealing with customer and employee data and moving money will come under increasingly heavy regulation

What does it mean to you? The good news is that the market needs these services to increase their efficiency and to allow them more time to focus on their business Industry trends are positive and in transition

What can you do about? The new environment will change your organization, your management needs, and your margins Retain capital and build your organization to compete

What happens to valuations? For those who want to sell Asset sales – the better the integration the higher the net For those who want to stay Revenue will be a key driver in valuation Push efficiency throughout your organization

Advising the Board of One since 1996 Guy R. Henshaw Henshaw / Vierra Management Counsel, LLC 510 749 3325 guy@henshawvierra.com Advising the Board of One since 1996