iLeader Insurance and PEO Solutions

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Leader
i
Insurance PEO/HRO Solutions for Private
Equity Firms
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iLeader LLC

• 1. Who We Are
• National Full Service Insurance and PEO/HRO
  Brokerage made up of the industrys top
  professionals.
• 2. Who Are Our Customers
• Large Risk Management firms which require
  consulting due to their complexity ie
  Healthcare, PEO/Staffing, Transportation,
  Construction, Manufacturing/Wholesale,
  Development, Real Estate, Hospitality, settle
  claims.
• Private Equity Firms (or licensor/franchisor
  programs) who partner with iLeader in providing
  solutions to their portfolio (and members)

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iLeader Divisions
Property Casualty
Life Health
PEO/HRO
Workers Comp General Liability Auto Excess
Umbrella Property incl. Wind Safety Claims
Oversight High Net Worth - Personal Lines
Insurance

• Group Health Plans
• Major Medical
• Scheduled Benefits
• Retirement Plans
• High Net Worth Executive Life Disability

Payroll Human Resources Benefits
Administration Unemployment Management Complianc
e Reporting
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Our Value Proposition for Private Equity Firm
Example . . . Private Equity Holding Company
owning 20 firms Assumptions Three Large
companies with an average 1,000 employees
each Seven Mid sized companies with an average of
300 employees each Ten Small companies with an
average of 100 employees each For all companies,
we deliver the following insurance
advantages Lower Total Cost of Risk (avg. 20
savings) Improve overall Cash Flow funding Cost
of Risk Enhanced Terms Conditions Improved
Service Complete Disclosure / Transparency For
the Small Mid-Sized companies we deliver the
above, plus the following benefits thru
PEO/HRO Consolidated and Improved Payroll
Service Enhance HR Delivery to Subsidiaries
through Dedicated Team of HR Professionals Large
Company caliber Employee Benefits Plans Reduce
Workers Comp Cost by focusing on Safety Claims
Management Possible Decrease in Unemployment
Taxes
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OVERVIEW OF SALES FLOW
Operations
PEO Sales
Underwriting
Claims Loss Control
Pricing
P L
Finance
Private Equity
PEO Solution
iLeader
Risk Mgmt
Risk Mgmt Solution
Brokerage Consulting
Marketing placement strategy, financial
analysis, loss control, claims mgmt
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Private Equity JV with iLeaderHow It Works
Traditional . . .
PE Portfolios 20 Companies
20MM Premiums 2MM Commission/Fees to Broker 0
Commission/Fees to PE Firm 4MM Asset to
Broker 0 Asset to PE Firm
PE Firm
Former Broker
PE JV with iLeader . . .
PE Portfolios
iLeader/PE joint venture brokerage provides
insurance solutions and PEO/HRO solutions to PE
portfolio of companies 16MM Premiums (average
20 savings) 1.6MM Commissions/Fee paid to
LLC 3.2MM Market Value of Asset Year 1 (1.6 MM x
2) 1.57MM Mkt Value of PEs Asset Y 1 (1.6 MM x
2 x .49) 26.4MM Increased Value to PE Firm .
.4MM prem savings .4MM cash to PE (K-1) x 6
(PEs EBITDA multiple)
PE Firm
PE Firm iLeader
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Financial Results for Private Equity Firm
Income Statement/PL Premiums Before iLeader
20.0 MM With iLeader (20 average
savings) 16.0 MM Premium Savings
4.0 MM Cash to PE Firm from JV (via
K-1) .4 MM First Year Cost
Reductions 4.4 MM Balance
Sheet Investment by PE Firm ( 49 ownership/ one
of two annual payments) 0.40 MM Value of
Asset Year 1 (1.6 MM x 2 x .49) 1.57
MM Total Value to PE Firm . . 4.4 MM x 6
(EBITDA multiple) 26.4 MM
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Non-Financial Value for Private Equity Firm
Our Partnership allows the PE firm to become
co-owners of a High-End Insurance and PEO/HRO
Brokerage. iLeader is the operator, our PE
Partner serves the role of Producer.

Pre iLeader Partnering With iLeader Service
Team Little Control Much
Control Intellectual Capital of Team Unknown
Tops in industry Market / Carrier
Relationships Unknown Tops in
industry Disclosure/Transparency No Yes
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Reasons Why Private Equity Firms Want Our Services

• The private equity firm becomes an owner of a
  valuable asset, which provides ROI greater than
  their other investments, thus increasing the PEs
  portfolio overall multiple
• iLeader provides better solutions with lower
  insurance costs, which increases PE Firms EBITDA
• We deliver efficiencies in non-core areas such as
  Payroll, Human Resources, Benefits
  Administration, Compliance Reporting, so you
  can focus on your core business