425.231.0085 www.AcornConsultingInc.com 1

Your People Prospectus™

The Organizational Due Diligence®Acorn Consulting Inc

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Are you investing in your future dream investment,

Acorn Consulting Inc

or in a money pit?

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You’ll Have To Live With The Results of Your Due Diligence

Not your advisors. You. JOINT VENTURE: A Real Situation I faced and fixed Standard financial due diligence did not uncover:• Partners’ incompatible, clashing corporate cultures and styles • Poles-apart disagreement regarding management values • Many visible “red flags” indicating serious employee fear issues Deal failed: defalcation, unethical business practices Direct cost losses >$2M. Additional estimated losses >$2M

If this were your JV, how would your management react? Would a solution that surfaced all three problems and generated an ROI of 1:355 be acceptable? A COMPLETE due diligence = Financial + People Data

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Some things to think about:

Financial prospectus “left-brain”

People Prospectus™ “right-brain”

Are you doing your due diligence with only half a brain?

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You’ll Have To Live With The Results of Your Due Diligence

Merger: A Real Situation I faced and fixed Standard financial due diligence did not uncover: Issues of non-performance in executive team Years of local management conflict, denial in re: performance Managerial fearfulness about being terminated

At risk: Multimillion dollar investment in new regional data center; continued profitability of local and regional sales operations; market share; millions in discrimination suits

If this were your merger, how would your management react?

Would a solution that resolved all three problems and generated an ROI of 1:134 be acceptable?

A COMPLETE due diligence = Financial + People Data

Not your advisors. You.

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Achieve FULL DISCLOSUREin Your Due Diligence

People Data

NumericalAnd LegalData

Legal & Financial documents from CPA, attorney, auditor, inspector, etc.

A Complete Due Diligence

People:• Assets • Liabilities• Equity

Financial:• Assets• Liabilities• Equity

Two DistinctBalance Sheets

Full Disclosure People

Prospectus™

COPE™ Score

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You’ll Have To Live With The Results of Your Due Diligence

Not your advisors. You.

ACQUISITION: A Real Situation I faced and fixed

Standard financial due diligence did not uncover that:

• The retirement-age owner “was” the company• There were no sustainable processes• There was a $2M annual drain, on-going for years

If this were your acquisition, and your management realized this AFTER the deal closed, how would they react? Would a solution that resolved all three problems and generated an ROI of 1:82 be acceptable? A COMPLETE due diligence = Financial + People Data

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Your People Prospectus™The Organizational Due Diligence®

Identifies existing people assets, liabilities and equity in the target organization or your company

People Prospectus™ + Financial Prospectus =

FULL Disclosure (The TOTAL Picture)

Joint Venture

A B A

B

Acquisition

A

“Health Check”

Provide valuation to “move forward,” with risks identified

A B

Merger

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You’ll Have To Live With The Results of Your Due Diligence

Not your advisors. You.“Health Check”: A Real Situation I faced and fixed Standard financial due diligence did not uncover:• Widespread, intense, long-standing, buried gender & racial conflict • Incompatibility of former paternalistic management style with more open climate requiring employee involvement • Lacking a frame of reference, employees were threatened by new core value and processes of “employee involvement”

If this were your situation, how would your management react? Would a solution that surfaced all three problems and gave an ROI of 1:1427 (upper boundary) be acceptable? A COMPLETE due diligence = Financial + People Data

At Risk: Declining customer base due to conflict; poor community reputation; potential union, and discrimination suits in the millions

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The Balance Sheet for People

How many deals have been less than successful because of pre-existing

employee issues organizational issues political issues

cultural issues

issues that were ignored, underestimated, downplayed, or unknown?

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Besides Losing Money, What Consequences… ?

Lost Time Lost Resources

Stress / Ulcers Premature Aging

Damaged Relationships Compromised Health

Lost Sleep Fired

Lower Employee Morale Discrimination Suits

Loss of Market Share Bad Press

And the most important of these (the one that cannot ever be regained) is …

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Lost Time

EqualsOPPORTUNITY COST

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Saving You Time and Money

Reduce the Possibility of Getting Blindsided • Obtain valuable investor information from all levels

Keep Target Management Honest • Like dating, “real” people typically surface after deal closes • Don’t be left holding the bag:

Avoid Costly Surprises • Each person is an asset. • The question is: are they a positive or negative asset?

Conflict distrust

dysfunctional processes no “team”

inadequate leadership asset mismanagement

cultural challenges disappointing revenues

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Methodology of the People Prospectus™

Establish Expectations of YOUR Ideal People Profile

In Spanish as well as English

Determine Congruence Between YOUR Expectations and Their Reality

Wide “Vertical Slice” of the Organization

All Sites; All Shifts; All Levels

Data Gathered One:One and Small Groups

Discreet Strategies for Engagement

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It’s Your Call…

Would you buy your dream house without having it inspected?

Half a brain, or whole?

Save months and millions by spending hours and

thousands? The COMPLETE picture: FULL Disclosure

People Prospectus™

Financial Prospectus

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The Organizational Due Diligence®Your People Prospectus™

Know the whole story before you invest

Don BurrowsAcorn Consulting Inc

425.231.0085

Don@AcornConsultingInc.comhttp://www.AcornConsultingInc.com