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Short Form Firm Specific Risk Factors Input Form
Short Form Firm Specific Risk Factors Input Form
Your Name and Contact Information
Name and Address of Firm you Wish to Have Analyzed
Financial Reporting
Select the Number that best describes the Company's financial reporting system
Informal spreadsheet-based cash basis financial reporting system 1
Financial reporting prepared and maintained internally using "off the shelf" accounting software 2
Accountant prepared "compiled" ("notice to reader") financial statement (for internal management use Only) 3
Accountant prepared financial statements - reviewed for accuracy (a "review engagement") but not certified 4
Accountant prepared financial statements - audited and certified as GAAP compliant 5
Customer and Supplier Relationships
Select the Number that best describes the Company's customers and suppliers relationship structure
Customer and supplier relationships are too important to be delegated to others 1
I am the primary relationship manager but will delegate some less important matters to others as appropriate 2
I hand off most day to day relationship matters to others but continue to be involved in the most sensitive matters 3
We have a sophisticated system for managing customer and supplier relationships with direct reporting to me 4
All of my customers and suppliers relationships are assigned to others - I have no ongoing involvement except social 5
Select the Number that best describes the Company's customers and suppliers relationship structure
Customer and supplier relationships are too important to be delegated to others 1
I am the primary relationship manager but will delegate some less important matters to others as appropriate 2
I hand off most day to day relationship matters to others but continue to be involved in the most sensitive matters 3
We have a sophisticated system for managing customer and supplier relationships with direct reporting to me 4
All of my customers and suppliers relationships are assigned to others - I have no ongoing involvement except social 5
What would be the impact of losing your largest customer?
Select a number that best answers the question
Severe impact and the company would definitely not survive 1
Severe impact and the company may or may not survive 2
Moderate impact but the company would survive 3
Some small impact but the company would survive 4
Little or no impact and the company would survive 5
Which of the following best describes the Company's growth prospects over the next few years?
Select a number that best answers the question
We expect to experience double digit growth over the next few years 1
We expect to experience single digit annual declines in growth over the next few years 2
We expect annual growth to be relatively flat over the next few years 3
We expect to achieve single digit annual increases in growth over the next few years 4
We expect to achieve double digit annual increases in growth over the next few years 5
How easy would it be to replace your largest supplier?
Select a number that best answers the question
impossible 1
very difficult 2
moderately difficult 3
moderately easy 4
very easy 5
Which of the following statements best describes how you deal with corporate governance matters?
Select a number that best answers the question
I am in charge and make all decisions regarding business and corporate governance issues. 1
I meet informally with my accountant several times a year and my attorney at least once a year regarding corporate governance in their areas of expertise but ultimately have the final say on all corporate governance issues. 2
In addition to getting input from my professional advisors, I occasionally speak with other business owners in the community on business conditions, personnel issues and other matters that might impact the business but have nothing formal in place to address governance issues. 3
I have an established an informal board of directors consisting of my accountant, my attorney, my property and casualty agent and my banker. We meet a couple of times a year when everyone's schedule permits to review corporate governance matters and other issues that impact the business but their input is strictly advisory. 4
I have established an independent board of directors which is comprised of a diverse and experienced group of business professionals some of whom are from the same industry and others who also serve on other boards both locally and in other areas of the country. 5
How easy would it be for you to expand geographically?
Select a number that best answers the question
Expanding into a new geographical market would be impossible 1
Expanding into a new geographical market would be very difficult 2
Expanding into a new geographical market would be somewhat difficult 3
Expanding into a new geographical market would be fairly easy 4
Expanding into a new geographical market would be extremely easy 5
How easy would it be for you to generate more business from existing customers?
Select a number that best answers the question
Impossible as we do not offer any products or services that our existing customers are not already buying 1
Somewhat difficult as there are only a couple of complimentary products or services that we could be offering to our existing customers 2
Somewhat easy as there are only a few new and complementary products and services that we could be selling to our existing customers 3
Fairly easy as there are several new and complementary products and services that we could be selling to our existing customers 4
Very easy as there are a large number of new and complementary products and services that we could be selling to our existing customers
Which of the following statements best describes the exclusivity of your Company's products and services offerings?
Select a number that best answers the question
Our products / services are commodities that can be obtained from many other sources 1
Our products / services are commodities that can be obtained from a limited number of other sources 2
Products / services are unique but similar products / services can be obtained from a limited number of other sources 3
Products / services are unique and a customer would find it somewhat difficult in finding another supplier who could deliver the same or a sufficiently similar product / service as what we deliver 4
We have an effective monopoly on the product / service that we offer and there are few if any alternative sources 5
When do customers pay for services to be performed or products to be sold?
Select a number that best answers the question
100% billed after services performed or product manufactured / delivered 1
We expect payment in full upon product delivery or completion of services 2
Up-front payment (deposit/down payment) with balance billed upon delivery of product or service 3
Up-front payment (deposit/down payment) with progress payments at agreed-upon intervals until completion of services or product delivery 4
100% payment in advance upon engagement to perform services or agreement to purchase 5
Products and Services Diversification
Select a number that best answers the question
We offer a broad range of products and/or services to a large but declining customer base. Low repeat business. 1
We offer a broad range of products and/or services to a moderate to high and relatively stable customer base. Low to moderate repeat business. Low growth prospects for new customers. 2
We offer a limited number of products and/or services to a small to moderately sized, diverse and relatively stable customer base. Moderate repeat business. Low to moderate growth prospects for new customers. 3
We offer a limited number of products and/or services to a moderately sized, loyal and relatively stable customer base. Moderate to high repeat business. Moderate to high growth prospects for new customers. 4
We offer a limited number of products and/or services to a relatively large, loyal and expanding customer base. Relatively high repeat business. High growth prospects for new customers. 5
Which of the following choices best describes the amount of revenue that will be generated from existing customers?
Select a number that best answers the question
0% to 20% of total revenue 1
21% to 40% of total revenue 2
41% to 60% of total revenue 3
61% to 80% of total revenue 4
81% to 100% of total revenue 5
How many customers does the business support?
Select a number that best answers the question
one only 1
two to five 2
six to ten 3
eleven to twenty 4
more than twenty 5
Which of the following statements best describes company performance if you were to take a prolonged leave of absence?
Select a number that best answers the question
The company would go out of business if I were not around. 1
My employees might be able to keep things running for awhile but business would suffer in the long-term as existing projects and contracts were wrapped-up. 2
New business development would suffer but we have developed recurring revenue sources that would enable the company to meet payroll and other expense commitments and otherwise "keep the lights on" for the foreseeable future. 3
I have developed a marketing team that could develop new business opportunities. This, combined with our recurring revenue sources, would allow the business to continue until I returned but probably not at the same level as if I were still around since so many of our customers do business with us because of the relationships I have developed over the years. 4
I have pulled-back from direct business development responsibilities and have put in place a sales and marketing team that can continue to grow and expand the business if I were not around. I have also initiated a program to transition my customer relationships over to others so that the customers who I had originally developed are now very comfortable dealing with these other employees. 5
Which of the following statements best describes your business planning?
Select a number that best answers the question
We have not attempted to develop any formal or informal business or marketing plans. 1
We set revenue goals for the year and assume that expenses will maintain the same relationship to revenues as in prior years. 2
We develop informal annual estimates of revenues, expenses, and additional capital requirements as well as potential new revenue sources and opportunities for growth. We do not perform any formal budgeting analysis of additional expenses, personnel costs, and capital requirements that will be required to support such revenue. 3
We have formal budge analysis processes that includes estimates of annual revenue from both existing business lines and relationships as well as expected revenue growth from new and existing customers and from new revenue sources. The process includes detailed expense estimates including additional personnel costs and additional capital requirements that will be required to support this expected revenue growth. Rate of return forecasts are also made to verify that revenue forecasts net of projected expenses and costs are expected to meet minimum rate of return requirements. 4
We have developed a formal written business plan which sets forth specific, quantifiable and achievable multi-year goals for business growth, expected revenue, return on investment targets, expense estimates and management, expected additional capital requirements to achieve these goals and other factors that could affect the achievement of the goals as adopted under the plan. All employees provide input to the plan and take ownership of that portion of the plan that can be expected to be directly or indirectly impacted by their performance. The plan includes specific and quantifiable incentives for achieving stated goals both at the individual and organizational level. Performance under the plan is monitored on a regular basis and adjustments made as required to address deviations from plan expectations. 5
Which of the following statements best describes how your profit margins are affected by the addition of new customers?
Select a number that best answers the question
Net profit goes down a lot with each new customer. 1
Net profit goes down slightly with each new customer. 2
Net profit stays about the same with each new customer. 3
Net profit margin improves slightly with each new customer. 4
Net profit improves a lot with each new customer. 5
Which of the following statements best describes the impact on the Company of the loss of a key employee?
Select a number that best answers the question
There would be no impact. We have no key employees other than me. 1
The impact of the loss of a key employee would be serious and we would have to look outside the Company for a replacement. 2
The impact of the loss of a key employee would be moderate and we would have to look outside the Company for a replacement. 3
The impact of the loss of a key employee would be moderate to small as we have developed a management team with sufficient breadth of experience so that someone from our existing management team could gradually take over the departed employee's duties and responsibilities over time. 4
The impact of the loss of a key employee would be small as we have developed a management team with sufficient depth, breadth and experience so that someone will already have the training and experience to step in and immediately assume duties and responsibilities of the departed employee. 5
Which of the following statements best describes your 'management team'?
Select a number that best answers the question
None - I manage all aspects of the business. 1
We have a couple of long-time employees who have seniority and experience who act as informal trainers and leaders but their roles are not clearly or formally defined. 2
We have designated managers in charge of sales and marketing and products and services delivery respectively but no other formal management roles have been assigned. No special programs are in place to retain and incentivize these managers. 3
We have at least one designated manager for most business units including sales and marketing, products and services delivery, finance, information technology and human resources but lack depth of coverage and have not had any cross-training to assume management responsibility in the absence or loss of a manager from another unit. No special programs are in place to recruit, retain, and incentivize key management personnel. 4
We have both breadth and depth of management in all key business units. Our managers have been cross-trained to assume management responsibilities for other units in the event of the absence or loss of primary or second-tier managers from other units. We have a formal incentives and supplemental benefits program in place to help recruit top-tier management personnel and to retain and provide strong incentives to stay with the Company long-term and to discourage them from leaving except on our terms. 5
Which of the following best describes the Company's growth prospects over the next few years?
Select a number that best answers the question
We expect to experience double digit annual declines in growth over the next few years. 1
We expect to experience single digit annual declines in growth over the next few years. 2
We expect annual growth to be relatively flat over the next few years. 3
We expect to achieve single digit annual increases in growth over the next few years. 4
We expect to achieve double digit annual increases in growth over the next few years. 5
Which of the following statements best describes your employee compensation and benefits programs?
Which of the following statements best describes your employee compensation and benefits programs?
Select a number that best answers the question
We view personnel costs as an expense and therefore offer the minimum level of salaries and benefits required to be competitive and still be in compliance with the minimum requirements of state and federal laws. 1
We offer salaries and benefits to all employees that are in line with industry standards even if such salaries and benefits exceed the minimum requirements of state and federal law. 2
We offer salaries and benefits to all employees that are in line with industry standards and also reflect each employee's contribution to the success of the Company. 3
We offer salaries and benefits to all employees in line with industry standards and that reflect each employee's contribution to the success of the Company. We also offer supplemental benefit programs where deemed necessary in order to hire "in demand" and specialized employees. 4
We view all of our employees and, in particular, our management team as a resource rather than an expense. We provide "above industry standard" salaries and employee benefits to all of our employees and offer an added package of benefits to help recruit, retain, and incentivize key management personnel. 5
Which of the following statements best describes your Company's ability to deliver customized products / services?
Select a number that best answers the question
We specialize in providing customized solutions to meet the unique needs of our customers 1
We offer a standard set of products / services that we often customize to meet specific customer requirements 2
We offer a standard set of products / services that we will sometimes customize to meet specific customer requirements 3
We offer a standard set of products / services that we will customize on rare occasion to meet the unique needs of a few of our best and most important customers 4
We offer a standard set of products / services and do not customize these products / services for specific customers under and circumstances 5
What percentage of your revenue is derived from your largest 5 customers?
Select a number that best answers the question
More than 50% 1
Less than 50% but more than 25% 2
Less than 25% but more than 10% 3
Less than 10% but more than 5% 4
Less than 5% 5
Which statement best describes your relative degree of geographical diversification?
Select a number that best answers the question
Single or multiple locations serving customers in a single neighborhood, city section, town, city or metropolitan area 1
Single or multiple locations and serving country-wide or state-wide customer base in a single state 2
Single or multiple locations and serving a customer base in multiple states or regional (eg., northeast)
Single or multiple locations with a customer base that is section (eg., East of the Mississippi) 4
Single or multiple locations and customers throughout the US and internationally 5
How many supplier relationships does the business maintain?
Select a number that best answers the question
one only 1
two to five 2
six to ten 3
eleven to twenty 4
more than twenty 5
Which of the following statements best describes your recurring revenue expectations from one year to the next?
Select a number that best answers the question
From 0% to 20% of total revenue 1
From 21% to 40% of total revenue 2
From 41% to 50% of total revenue 3
From 61% to 80% of total revenue 4
From 81% to 100% of total revenue 5