Why Choose Kelly+Partners?

WHY CHOOSE KELLY+PARTNERS?

V 1.0

Helping you, your clients and your team

Be Better Off Through the Partner-Owner-Driver® Model

PUBLISHED: 30 JUNE 2023

For us, the most important thing is to be a company of people that keep our promises. The clarity of our Mission, Values and Vision has allowed us to create a strong foundation for our business over the past 16 years.

Mission

OUR PROMISE Values

We exist to help our people, Private Business Owners and the communities we work in be better off.

• We want the best for others

• One team, One best way

• We do what we say

To be the first choice adviser to Private Business Owners.

WHY PARTNER WITH KELLY+PARTNERS?

1 . 2 . 3 . 5 . 6 .

PROBLEM

Attraction and staff retention

Kelly+Partners solution

Technological change Client demands increasing

of accounting firms surveyed have a partner retiring over the next 5 years Succession planning 7 .

Data and digital automation

SOLUTION Management of sub-scale back office functions and increasing regulatory and compliance burdens Undifferentiated service offering

Proprietary accounting systems and processes

Help your people, clients and local community be better off

Leverage strength of our brand, service offering and network to win more clients

Facilitate succession together

75% of accounting firms surveyed have no succession plan in place

BECOMING A PARTNER-OWNER-DRIVER®

Why partner with Kelly+Partners?

The Partner-Owner-Driver Model® is a system that we developed since 2006 to provide accounting firm owners with the leadership, strategic management and centralised back office services that they need to grow successful accounting firms.

The Partner-Owner-Driver Model® is a system that we developed since 2006 to provide accounting firm owners with the leadership, strategic management and centralised back office services that they need to grow successful accounting firms.

With 70 transactions completed to date, we have vast experience in managing the integrations of accounting firms into our group. We have helped to transform the profitability and performance of all of the accounting firms that have chosen to join us.

With 70 transactions completed to date, we have vast experience in managing the integrations of accounting firms into our group. We have helped to transform the profitability and performance of all of the accounting firms that have chosen to join us.

Our business model allows our Partner-Owner-Drivers to leverage our competitive advantage, brand equity and proprietary systems for delivering client services. We empower our Partners so they can help their clients and team be better off.

Our business model allows our Partner-OwnerDrivers to leverage our competitive advantage, brand equity and proprietary systems for delivering client services. We empower our Partners so they can help their clients and team be better off.

Partner

As a Partner, you want to get behind a business that has a vision and a direction that they want to go in, and is actively pursuing that. A business that turns their momentum into something more than just words on a page and actually puts things into action. Kelly+Partners is a great example of that. It’s a progressive business that’s going somewhere.

Owner

The opportunity to free myself up to be able to work with our team, to make them better accountants, better advisors, and to help our clients run and grow their businesses in a much better way has been fantastic. We want to attract the best, we want to be the best for our clients, and we want to be able to make sure we’ve got the best team. Kelly+Partners helps us to not only aspire to being the best but to achieve it.

Driver

We continue to own a substantial portion of the business, with all of us still having equity, some of us unchanged. We’re still locally owned, but now we are part of a 400 strong family in Kelly+Partners. We believe that our partnership with Kelly+Partners is the best way forward for ourselves, our families, our staff, and our clients.

WHY PARTNER WITH KELLY+PARTNERS?

Senior Client Director, NSW firm

Senior Client Director, Regional VIC firm

Client Director, Melbourne CBD firm

THE RIGHT FIT FOR YOUR FIRM

Does your firm fit our criteria?

A genuine care for clients & team, alignment of our VALUES:

• Want the best for others

• One team, one best way

• Do what we say

All offices owned by partners (not affiliates)

Private business / SME focus

Core offering is business accounting, tax and advisory services

To be the first choice adviser to Private Business Owners

STRUCTURE

Our proprietary structure allows you to retain significant ownership in the business so that you will continue to enjoy the rewards of being a genuine owner. We structure all our businesses as Partnerships as we see you as our valued Partners. All decisions of the business are made jointly in the partner group through monthly partner meetings.

Kelly+Partners (KPG) are perpetual owners of businesses – we will never sell our interest and it is our intention to grow the business with you, our operating business partners, for the very long term.

51% KPG

49% OPERATING PARTNERS

PEOPLE

We are a business made up of people that have a genuine care for others – from our clients and suppliers to our team members and fellow Partners. The strength of our culture comes from this shared language of support, collaboration and being greater than the sum of our parts.

We believe that by helping our people become the best in the world at what they do, they can provide the best services in the world for our clients. Our training and development programs and emphasis on career progression and continuous learning have allowed us to nurture our current and future generations of Partners and Managers. Our dedicated People & Recruitment Team works with our Partners to recruit top-tier talent and manage complex HR & compliance matters.

Our award certifications include being voted Great Place to Work two years in a row and Employer of Choice Winner 2021.

TRAINING AND DEVELOPMENT

As Kelly Partners continue to grow, we are increasingly finding that training and development is playing a vital role in our success.

Our team are our most important asset, and by investing in their development we are ensuring that they have the skills and knowledge they need to help us achieve our goals.

Kelly Partners offer a range of training and development programs, both in-house and external, that cover everything from technical skills to leadership development.

We believe that by investing in our people we are not only increasing their job satisfaction and engagement, but also building a stronger Kelly Partners for the future.

PEOPLE

EVENTS

At Kelly Partners, we understand that team events are an important part of business. They help to build morale and keep employees engaged. We host 3 major events each year: Kick-off Day, Annual Awards and End of Year Christmas.

Kick-off Day is a day for the whole team to get together and celebrate the start of the year. This is a great opportunity for our business to plan for the year ahead.

Annual Awards is an event where we celebrate the achievements of our employees. We give out awards for Years of service, most improved and the Honour of Golden Calculator to , team member of the year.

End of Year is a time for us to come together and celebrate the year that was. We have a party with food, drink and entertainment. This is a great way for us to relax and unwind after a busy year.

PROCESS

Our commitment to you is a systematic approach to improving your accounting firm. Over the past 17 years and with over 61 completed transactions, we have continuously learned, refined and enhanced this system. We have the expertise and proven track record to make a demonstrable impact on each of these 12 key areas of your business.

CLIENTS

Our brand promise to our clients has 4 central pillars: proactive and forward-looking advice, fixed fees & no surprises, 24/6 accessibility, and most importantly, the delivery of an integrated service experience that will help them be better off.

Our Partners receive access to our proprietary Client Service System that we have built from decades of expertise working with business owners and managing their financial universe. We provide our Partners with training, coaching and industryleading technology to deliver a superior service experience to clients that will not only fulfil their needs but exceed them.

Our Net Promoter Score® (NPS) of +70 from our 2021 survey of 584 clients, as well as our 500+ 5-star Google Reviews reinforce our focus on going above and beyond for our clients.

Our Net Promoter Score® (NPS) is +69 from 494 client responses, compared to an industry average of -18 for accounting services.

CLIENTS

EVENTS

We also have a strong focus on business events, which are a great way to network and learn about new developments in the industry. Events such as Be Better off Show TM Live, Scholars Future Leaders Programs, Grow Program and Plan to Win.

Events can be a great way to connect with other businesses, learn about new developments in your industry, and network with potential clients. Kelly+Partners Group can help you plan and execute a successful event.

FINANCIALS

Kelly+Partners prides on generating industry leading profits and cashflows. All Kelly+Partners operating businesses work on the following benchmark metrics:

• Minimum 5% organic revenue growth per annum

• EBITDA margin of 35%+

• Lockup days of less than 55 days (being 35 debtor days and 20 WIP days)

Under the Kelly+Partners model, operating partners earn more than what they could earn in their existing practice even though their equity ownership of the business may be reduced.

We are 63% more profitable than the average accounting firm in Australia and lockup 1/3rd of what the average accounting practice (55 days vs. ~150 days)

We see the ability to generate such returns to make our people and partners better off.

DIGITAL

At Kelly+Partners, we are constantly innovating. We understand the need for digital transformation and we are investing heavily to ensure clients, in a backward industry, experience Kelly+Partners in a modern and digitised way.

We are currently developing the first ever Kelly+Partners Flight Plan, mobile Application, and Single Point of Trust (SPOT) that will bring you and our clients a unique digital experience.

We are developing the first ever Kelly+Partners Flight Plan, App, and Single Point of Truth (SPOT) that will bring you and our clients a unique digital experience

RISK

• Business continuity

• Client selection

• Quality work

• Kelly+Partners agreements

• Kelly+Partners Policies

• Insurances

• Public market

Core Ideology

Core Values

Core Purpose

Insurance and Quality Assurance program

BRAND

BRAND

WHY PARTNER WITH KELLY+PARTNERS?

1. Sydney CBD 2. Melbourne CBD 3. North Sydney 4. Bendigo

5. Canberra 6. Central Coast 7. Bathurst 8. Oran Park 9. Pittwater

10. Dungog 11. Gloucester 12. Inner West 13. Leeton 14. Maitland 15. Newcastle 16. Northern Beaches 17. Norwest 18. Blue Mountains

19. South West Sydney 20. Singleton 21. Southern Highlands 22. Western Sydney 23. Wollongong 24. Palm Beach 25. Taylors Beach 26. South West Brisbane 27. Hong Kong

28. Malibu 29. Newport 30. Mumbai

GROWTH

SUCCESSION

When it comes to succession planning, we would all agree that powers that be in most organizations certainly desire to “do it well” and are looking for optimal pathways that lead to multiple successes in the area of Director Succession. Rather than discuss all of the various pathways, we would be best served by focusing on several common elements that all productive pathways would likely possess – including those that would meaningfully address the truths in a most cogent and creative way to gain the positive long term outcomes that the businesses desire.

For this reason, an organisation needs to look at the chronological aspects of Succession Planning and look at the timing that would present the best moment (and, momentum) to transition a partner out of the business within a period of time.

The Ambassador Program is an exciting initiative that will see well credentialled retiring partners appointed as official Kelly+Partners Ambassadors in designated local areas nationwide.

Kelly+Partners Ambassadors functions will include:

+ Being the official local Kelly+Partners representative

+ Providing Support and Advice to Client Directors, and business owners

+ Facilitating and nurturing business opportunities for Client Directors

+ Being the Advocate for the local community

+ Building their own Ambassador within their designated area

+ Providing feedback to the Kelly+Partners on the issues effecting their business

+ Assist SME’s to grow both professionally and personally

+ Ambassadors are provided with full support to help them grow the business and local profile as well as authority to represent Kelly+Partners.

CASE STUDY

BUSINESS TRANFORMATION

KELLY+PARTNERS SOUTH WEST SYDNEY

The Kelly Partners South West Sydney business in Campbelltown opened its doors in 1979 as Anthony Marks Croker & Company. In July 1984, it merged with DF Cheetham to become Marks Croker & Cheetham. Following some retirements and introduction of new partners, the firm changed its name to Dinale Croker Partners in 1992.

Then in 1999, the business was merged with BCD Financial, and shortly afterwards changed its name to BCP Accounting & Business Advisors. BCP subsequently merged with Kelly+Partners in July 2011.

The chart below highlights the significant improvement in margins and revenue achieved at Kelly Partners South West Sydney in the first 5 years after joining the network. Following the acquisition of a majority ownership interest, the transformation typically entails five deliverables including: expense reduction, better working capital management, better client experience, better staff experience, and higher revenue growth.

“After 32 years, Kelly+Partners offered us the opportunity to take our service offering to clients one step higher. We have not only seen the business grow, but our people have new opportunities and resources, and we have provided a higher level of service to our clients.”

Tim Bryan Former Senior Client Director Kelly Partners South West Sydney

CASE STUDY

GREENFIELD KELLY+PARTNERS NORWEST

The Kelly Partners Norwest business commenced as a greenfield location, with an office in Baulkham Hills launched in 2011. It started with an acquired fee base from FMK Chartered Accountants and 1 partner and 1 support staff. Located in the fast growing North West region of Sydney, and with access to talent based in the area, the business has since grown to a team of 11, including 2 partners, covering a large range of private businesses and family groups.

As illustrated below, in the 6 years since inception, the Kelly Partners Norwest business has exhibited very strong growth in revenue and earnings, with a significant increase in margins. This has been achieved by targeted marketing and the roll-out of the proprietary Kelly+Partners systems and processes, leading to numerous new client acquisitions across private SMEs / families, franchisees, and other clients.

“I sat down one evening with Brett Kelly, and he showed me the Kelly+Partners systems and what the firm was doing for its people and its clients. After the first 2 years, the Kelly Partners Norwest business was performing very well, and so we started to add more people. The future is looking bright, and I’m happier in myself and my family is happier.”

Paul Kuchta Senior Client Director and Company Director Kelly Partners Norwest

NEXT STEPS

1. DISCUSSIONS

2. TERM SHEET

3. AGREEMENTS

4. INTEGRATION 5. GROWTH

DISCLAIMER

The information contained in this document is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. This brochure does not constitute personal financial advice. We have not taken into account your personal circumstances, financial situation or needs. The information contained is not intended to address the circumstances of any particular individual or entity and is not to be relied upon by individuals or any other entity in making financial or investment decisions. Individuals and other entities should seek appropriate professional advice tailored to their circumstances in making financial decisions. Although Kelly+Partners has taken care in creating this document, no guarantee is given as to its accuracy, currency or correctness. Kelly+Partners is under no obligation to update any information included in this document. To the extent permissible by law, Kelly+Partners and its associated entities and each of their officers, employees or agents shall not be held liable for any errors, omissions, defects or misrepresentations in the information contained in this document, or any loss or damage, however caused, suffered or incurred by persons who rely on information in this document for any purpose.

Each office (Office) of Kelly+Partners is a separate legal entity. Services are delivered independently by each Office. These Offices are not members of one national partnership or otherwise legal partners with each other, nor is any one Office nor any of its officers, employees or agents responsible for the services or activities of any other. Kelly+Partners Group Holdings Limited (KPGH) and each of its officers, employees and agents are not responsible or liable for any acts or omissions of an Office and specifically disclaims any and all responsibility or liability for acts or omissions of an Office. An Office cannot act as agent of KPGH or any other Office, cannot obligate KPGH or any other Office, and is liable only for its own acts or omissions and not those of KPGH or any other Office. Similarly, KPGH cannot act as an agent of any Office, cannot obligate any Office, and is liable only for its own acts or omissions. This document is subject to copyright. No part of it should be reproduced, adapted or communicated without the written consent of the copyright owner. Liability limited by a scheme approved under professional standards legislation.

The artwork for this brochure was created for Kelly+Partners by esteemed graphic designer, illustrator and artist, Noma Bar.