Thought Leadership

Firm Values

Founders Advisors Overview

About Us

Founders Advisors is a merger & acquisition advisory firm serving middle-

market companies. Founders’ focus spans a variety of industries including;

business services, consumer, energy, healthcare, industrials, and

technology. Through a team of experienced professionals, Founders utilizes

proven expertise and process-based solutions to deliver results. Founders

forms authentic relationships with clients to help them access growth capital,

make acquisitions, and/or prepare for and execute liquidity events to achieve

their specific financial goals.

Keep proper focus, and do the right

things at the right time

Order

Go the extra mile for our clients, co-

workers and community

Service

Define, communicate and own key

results

Accountability

Seek the truth, speak the truth and

advocate the truth

Truth

Reflection, evaluation and planned

improvement

Growth

Capabilities

Sellside

Advisory

Capital

Raises

Strategic

Advisory

Targeted

Buyside

Divestitures/

Spin Offs

Areas of Focus:

Business ServicesConsumer

Energy

HealthcareIndustrialsTechnology

Founders’Forums

VideosWeeklyBlogs

QuarterlyIndustry Updates

WE GET YOUR DEAL DONE

BMSS Presents: Re-opening the

Economy

May 7, 2020

Wesley Legg

Founders Advisors

President

2204 Lakeshore Drive, Suite 425

Birmingham, AL 35209-8855

(205) 949-2043

COVID-19 Insights

5

Economic Overview Pre-COVID

Source: St. Louis Federal Reserve

Years of Consistent GDP Growth with Declining Unemployment Rates

Longest Growth Cycle in Recorded History

0%

2%

4%

6%

8%

10%

12%

$0

$5,000

$10,000

$15,000

$20,000

$25,000

2005 2007 2009 2011 2013 2015 2017 2019

GDP (billions) Unemployment Rate

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

S&P 500

https://fred.stlouisfed.org/series/GDP https://fred.stlouisfed.org/series/UNRATE

6

COVID-19 Timeline

0

20,000

40,000

60,000

80,000

100,000

120,000

23-Jan 3-Feb 14-Feb 25-Feb 7-Mar 18-Mar 29-Mar 9-Apr 20-Apr 1-May

WHO declares

a public health

emergency

(Jan 30)

WHO officially

names the virus,

Covid-19 (Feb 11)

The first U.S.

coronavirus death

is reported in

Seattle (Feb 29)

CDC lifts all

federal

restrictions for

widespread

testing (Mar 3)

WHO declares a

global pandemic

(Mar 11)

White House

limits gatherings

of 10+ people

(Mar 16)

President Trump

declares a national

emergency (Mar 13)

President Trump

signs $2T stimulus

bill into law (Mar 27)

The U.S. leads

the world in

confirmed cases

(Mar 26)

Total Cases exceeds

1M worldwide (Apr 2)

Vaccine drug

trials underway

(Apr 8)

White House

provides reopening

guidelines for states

(Apr 16)

The global death

toll surpasses

200,000 (Apr 26)

State governors

provide plans to

reopen or

extend stay-at-

home orders

(May 1)

U.S. death toll

exceeds

70,000

(May 5)

Source: Worldometerhttps://www.worldometers.info/coronavirus/

COVID-19 Timeline

7

Global Pandemic

3,724,518 Total Cases 2,225,786 Active Cases

Source: Our World in Datahttps://ourworldindata.org/grapher/covid-confirmed-cases-since-100th-case

8

US Covid-19 Cases

Source: The New York Timeshttps://www.nytimes.com/interactive/2020/us/coronavirus-us-cases.html

9

Flatten The Curve

Source: KPMG Covid-19 Report

10

US Covid-19 Daily Cases

1,237,633 Total Cases 964,736 Active Cases

Source: The New York Timeshttps://www.nytimes.com/interactive/2020/us/coronavirus-us-cases.html

11

US Current Covid-19 Hospitalizations

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

March 17, 2020 March 24, 2020 March 31, 2020 April 7, 2020 April 14, 2020 April 21, 2020 April 28, 2020 May 5, 2020

United States Current Hospitalizations

Source: COVID Tracking Projecthttps://covidtracking.com/data

12

Immediate Hospital Crisis Averted

Source: University of Washingtonhttps://covid19.healthdata.org/united-states-of-america

United States

Original projected deaths: ~200,000+

Current projected deaths: ~135,000*

Alabama

Original projected deaths: ~7,500

Current projected deaths: ~2,300*

*projected deaths through August 4, 2020

13

White House State Reopening Guidelines

Source: The White Househttps://www.whitehouse.gov/openingamerica/

14

States Reopening

Source: The New York Timeshttps://www.nytimes.com/interactive/2020/us/states-reopen-map-coronavirus.html

15

Alabama Snapshot

Source: Worldometer

Daily Cases in Alabama (3 Day Rolling Average)

% Positive Tests in Alabama

0

50

100

150

200

250

300

March 21, 2020 March 30, 2020 April 8, 2020 April 17, 2020 April 26, 2020 May 5, 2020

Although the daily cases in

the state of Alabama has

increased in May, there has

been a steady decline in the

percentage of positive tests.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

April 1, 2020 April 9, 2020 April 17, 2020 April 25, 2020 May 3, 2020

16

Alabama Guidelines

Governor Kay Ivey Announces Plan to Re-Open Portions of Alabama’s Economy

Source: ABC Newshttps://abc3340.com/news/coronavirus/governor-kay-ivey-announces-plan-to-reopen-alabama-economy

17

COVID-19 Testing

Source: Our World in Datahttps://ourworldindata.org/grapher/full-list-total-tests-for-covid-19

18

Testing Relative to Population

Source: Our World in Datahttps://ourworldindata.org/grapher/full-list-cumulative-total-tests-per-thousand

19

US Daily Testing

Source: Our World in Datahttps://ourworldindata.org/grapher/full-list-covid-19-tests-per-day

20

US % Total Positive Tests

United States % Positive Tests

Source: COVID Tracking Projecthttps://covidtracking.com/data

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

March 10, 2020 March 18, 2020 March 26, 2020 April 3, 2020 April 11, 2020 April 19, 2020 April 27, 2020 May 5, 2020

21

State Testing

State % Positive Tests

STATE NAME TOTAL % POSITIVE TESTS PER MILLION POS PER MILLION POPULATION

New Jersey 287,623 45.4% 32,184.93 14,613.32 8,936,574

New York 1,028,899 31.2% 52,925.63 16,521.82 19,440,469

Connecticut 108,643 28.2% 30,491.34 8,593.98 3,563,077

Delaware 24,680 21.8% 25,109.50 5,464.47 982,895

Massachusetts 333,349 21.1% 47,781.03 10,072.39 6,976,597

Pennsylvania 250,882 20.3% 19,568.24 3,974.53 12,820,878

Michigan 222,836 19.9% 22,183.71 4,419.80 10,045,029

Colorado 85,004 19.9% 14,541.72 2,892.30 5,845,526

Maryland 140,103 19.4% 23,031.45 4,457.75 6,083,116

Illinois 346,286 19.0% 27,353.45 5,210.40 12,659,682

Indiana 115,834 18.2% 17,172.41 3,118.15 6,745,354

Virginia 113,708 17.8% 13,181.69 2,348.19 8,626,207

Nebraska 34,609 17.6% 17,724.84 3,115.38 1,952,570

Iowa 60,569 16.7% 19,047.76 3,179.71 3,179,849

Louisiana 188,231 15.9% 40,521.75 6,457.44 4,645,184

Georgia 200,883 14.8% 18,711.06 2,767.40 10,736,059

South Dakota 19,022 14.3% 21,064.71 3,013.20 903,027

Kansas 40,092 13.6% 13,775.63 1,875.37 2,910,357

Ohio 160,735 13.0% 13,682.26 1,784.95 11,747,694

Rhode Island 76,435 13.0% 72,370.60 9,404.82 1,056,161

Nevada 47,884 11.7% 15,251.34 1,781.72 3,139,658

Arizona 88,260 10.5% 11,961.79 1,261.10 7,378,494

Mississippi 80,308 10.2% 26,865.51 2,745.50 2,989,260

South Carolina 67,771 10.0% 13,007.63 1,296.91 5,210,095

Alabama 106,766 7.8% 21,750.71 1,687.85 4,908,621

Remaining 26 States fall between 1.6% to 9.6% Positive Test ResultsSource: COVID Tracking Projecthttps://covidtracking.com/data

22

Global Confirmed Covid-19 Deaths

Source: Our World in Datahttps://ourworldindata.org/grapher/total-covid-deaths-per-million?year=2020-05-05

23

US Confirmed COVID-19 Deaths

Source: Our World in Datahttps://ourworldindata.org/grapher/total-deaths-covid-19

24

US COVID-19 Death Demographics

4 2 3 42278

707

1,929

4,688

8,001

10,196

11,458

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Under 1 year 1-4 years 5-14 years 15-24 years 25-34 years 35-44 years 45-54 years 55-64 years 65-74 years 75-84 years 85 years +

Source: Centers for Disease Control and Prevention

Total Deaths of 37,308 are numbers that have been reported to the CDC as of May 1, 2020

https://www.cdc.gov/nchs/nvss/vsrr/covid_weekly/index.htm#AgeAndSex

25

Case Fatality Rate

Source: Our World in Datahttps://ourworldindata.org/grapher/coronavirus-cfr

26

Niche Test Population

Source: Goldman Sachs Global Investment Research

Herd immunity still far off but does help better inform the

infection fatality rate.

27

Niche Test Population

Age median (interquartile range), yrs. Passenger (69), Crew (36)

Source: CNN and Nature

https://www.cnn.com/2020/03/24/us/diamond-princess-cruise-ship-asymptomatic-tests/index.html

https://www.nature.com/articles/d41586-020-00885-w

Number of Passengers/Crew 3,711

Number of Passengers/Crew Infected 712

Infection Rate 19.2%

Number of Passengers/Crew Asymptomatic 331

Asymptomatic Rate 46.5%

Number of Passengers/Crew Deaths 11

Fatality Rate 1.54%

Diamond Princess Cruise Ship Test Population

28

Wastewater Testing

BIOBOT, an MIT Based Startup, Coronavirus Sewage Testing

BIOBOT sewage testing is predicting there are 2-10x more cases

compared to current medical results.

Source: Sun Sentinel

https://www.sun-sentinel.com/coronavirus/fl-ne-coronavirus-miami-dade-tracking-spread-

via-sewage-20200501-2fwgszzckjfc3get3frfrhw33a-story.html

29

Early Anti-Body Studies

https://www.forbes.com/sites/kevinanderton/2020/04/27/4-myths-about-coronavirus-antibodies-infographic/#23f1b71210b6

https://www.cnbc.com/2020/04/23/new-york-antibody-study-estimates-13point9percent-of-residents-have-had-the-

coronavirus-cuomo-says.html

The antibody testing indicates that the actual death rate is far lower, less

than 1%, Cuomo said.

Source: Forbes and CNBC

30

Predicted Infection Fatality Rate

WHO reports seasonal flu mortality rate < 0.1%

https://www.who.int/news-room/q-a-detail/q-a-similarities-and-differences-covid-19-and-

influenza#:~:text=Mortality%20for%20COVID%2D19,quality%20of%20health%20care. Source: World Health Organization

31

US Death Projections Volatility

https://www.nytimes.com/interactive/2020/04/22/upshot/coronavirus-models.html Source: The New York Times

32

How Many US Lives Have We Saved?

https://covid19.healthdata.org/united-states-of-america

https://nymag.com/intelligencer/2020/03/cdcs-worst-case-coronavirus-model-210m-infected-1-7m-dead.html Source: University of Washington

CDC Projections

200,000 – 1,700,000

U of Washington

Projections

~ 200,000+

White House

Projections

100,000 – 240,000

US Death Projections

33

The Cost: GDP and Unemployment

Source: Statista and BBC

https://www.statista.com/chart/18839/quarterly-real-gdp-growth-in-the-united-states/

https://www.bbc.com/news/amp/business-51706225

34

The Cost: Downturn Relative to Great Recession

Source: Center on Budget and Policy and KPMG Covid-19 Report

35

How Much Have Nationwide Shutdowns Cost?

https://www.washingtonpost.com/business/2020/04/15/coronavirus-economy-6-trillion/

https://www.mercatus.org/system/files/makridis-cost-covid-19-mercatus-v1.pdf

1Cares ACT and Federal Reserve Efforts data cited from The Washington Post2GDP Impact through April 30th with a 50% discount due to predicted economic slowdown. George Mason University

Source: Washington Post and Mercatus

CARES ACT 2.35T 1

Federal Reserve Efforts 4.00T 1

GDP Impact 1.61T 2

Total Spending Through April 30th

7.96T

Coronavirus Cost-to-Date

36

Value of Saving One Statistical Life Year

Source: Forbes

https://www.forbes.com/sites/theapothecary/2020/03/27/how-economists-calculate-

the-costs-and-benefits-of-covid-19-lockdowns/#dae153c6f630

37

Value of Averting a Single COVID-19 Death

Source: Forbes

https://www.forbes.com/sites/theapothecary/2020/03/27/how-economists-calculate-

the-costs-and-benefits-of-covid-19-lockdowns/#dae153c6f630

38

Other Value Figures

▪ University of Southern California scholars Mireille Jacobson and Tom Chang

rely on a detailed paper by Aldy and Viscusi to suggest that “If the average age

of those killed by Covid-19 is 60, value of statistical life estimates put the cost of

each death at approximately $5 million.”

▪ University of Michigan economist Betsey Stevenson, a former member of the

Council of Economic Advisers under President Obama, suggested in a back-of-

the-envelope calculation on Twitter that we use a “reasonable statistical value of

a life of $7 million.”

▪ The economists Martin S. Eichenbaum and Sergio Rebelo of Northwestern

University, with Mathias Trabandt of the Free University in Berlin, in a very

detailed paper examining the optimal containment policy for this pandemic, use

EPA’s figure of $9.3 million as their value of life.

▪ Cato Institute’s Alex Nowrasteh uses $10 million in his calculation of the

benefits and costs of COVID-19 restrictions.

Source: Forbes

https://www.forbes.com/sites/theapothecary/2020/03/27/how-economists-calculate-

the-costs-and-benefits-of-covid-19-lockdowns/#dae153c6f630

39

Government Values Your Life More

EPA’s value of

statistical life

$9.3M

Median wrongful

death jury award,

2009-2013

$2.4M

Lifetime earnings for

College graduates,

2019

$1.8M

Average life-

insurance policy

face value,

2018

$168K

Average net

worth of U.S.

household,

2020

$97K

https://www.epa.gov/environmental-economics/mortality-risk-valuation

https://www.thoughtco.com/lifetime-earnings-soar-with-education-3321730

https://www.statista.com/statistics/254619/face-amount-value-of-individual-life-insurance-policies-purchased/

https://www.marketwatch.com/story/whats-your-net-worth-and-how-do-you-compare-to-others-2018-09-24 Source: EPA and MarketWatch

40

Sensitivity Analysis

COSTS OF SAVED LIVES

$ 6,000,000,000,000 $ 7,000,000,000,000 $ 8,000,000,000,000 $ 9,000,000,000,000 $ 10,000,000,000,000

SA

VE

D L

IVE

S

100,000 $ 60,000,000 $ 70,000,000 $ 80,000,000 $ 90,000,000 $ 100,000,000

250,000 $ 24,000,000 $ 28,000,000 $ 32,000,000 $ 36,000,000 $ 40,000,000

500,000 $ 12,000,000 $ 14,000,000 $ 16,000,000 $ 18,000,000 $ 20,000,000

750,000 $ 8,000,000 $ 9,333,333 $ 10,666,667 $ 12,000,000 $ 13,333,333

1,000,000 $ 6,000,000 $ 7,000,000 $ 8,000,000 $ 9,000,000 $ 10,000,000

Source: The New York Timeshttps://www.nytimes.com/2020/03/24/business/economy/coronavirus-economy.html

41

Economic Scenarios Going Forward

Source: BCG Covid-19 Perspectives

42

Economic Scenarios Going Forward

Source: Goldman Sachs Global Investment Research

Congressman Gary Palmer

Representative for Alabama’s 6th District

Re-opening the Local Economy

Questions?

Congressman Gary PalmerRepresentative for Alabama’s 6th District

(205) 968-1290

Wesley LeggFounders Advisors

2204 Lakeshore Drive, Suite 425

Birmingham, AL 35209-8855

(205) 949-2043

To ask a question, please use the Q&A Button at the bottom of your Zoom screen or

email us at marketing@bmss.com.

CPE certificates will be emailed 1-2 weeks after each event. Please note, they will be sent via email

so you must be individually registered with an email address to receive your certificate.