using the downturn to prepare for the upturn - webinar ist

London’s Window of Opportunity

Using the Downturn to Prepare for the Upturn

24th September 2009

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Presentation title goes here

Who we are

London’s foreign direct investment agency

Supported by Government & the business community

Confidential & comprehensive consultancy service

Experts on London business

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Think London Clients

Our Speakers

Mark Davies

Executive Director, Think London

Bill Crowley

Senior VP International, TechTarget International

Mike Curran

Tax Director, PwC

Quick Poll

So why London Now ?

Think Value

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Presentation title goes herePresentation title goes here

Talent▲Talent Pool – Deeper & Wider

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1.9millionHighly qualified workers

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Property▼West End Rent decreased

by up to 30% from 2008

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£▼17.5% against the dollar and 15% against the Euro

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£ Living▼From 3rd to 16th rank worldwide

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Fastest growing capital city

Source: GLA DMAG1 million: Population growth over next 20 years

London’s population (000s)

Think 2012 Games

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Open for Business

500million300

languages

Multisector

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Window of Opportunity Closing?

‘Recession has passed its trough in March 2009’ (NIESR)

‘UK services sector returned to growth in May 2009’ (Cips/Markit)

Surging business confidence - UK recession ‘at an end’ (ICAEW)

‘Interest for London property is picking up’ (Jones Lang LaSalle)

‘By 2013 rents will rise around 40% on lows’ (Knight Frank)

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London Now!

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Touchdown London

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Bill Crowley,TechTarget International

TechTarget – Fastest growing IT media company

•Media company with IT Decision Makers as our audience and technology companies as our advertisers

• 7.5 million worldwide members

• 1000 advertisers

•Growth company

• Founded in 1999, IPO in 2007

• $100M in revenue in 2008, online business still growing in 2009

•Leaders in lead generation and targeting

TechTarget’s Audience Reaches Around the Globe

NA = 4,033,000NA = 4,033,000

APAC = 1,794,000APAC = 1,794,000

EMEA = 1,493,000EMEA = 1,493,000

7.5 million 7.5 million IT BuyersIT Buyers

Latin America = 225,000Latin America = 225,000

Why did TechTarget invest in London during recession

• Readiness• Enough reference-able customers in US; enough membership/visitors in Europe

• Earning very small % of our business from European buyers

• London/UK offers workplace terms most similar to US

• Customer access – London metro area has most UK offices of tech companies or their European headquarters. Ad agency community is strong

• Time zone / travel advantages• London is best place to overlap a workday with most of our office locations. Offices -

Boston, San Francisco, Mumbai and Beijing.

• Talent pool – Availability of people with tech/media experience

Advantage of starting now – Can get deals and access to people to build the business

• Real estate prices are at historic low and lots of serviced office options

• Personnel salary expectations are down, availability of people for consulting assignments

• Suppliers willing to work with a smaller customer or to make deal to earn the business

Challenges in UK right now

• Market is tough

• Budgets have been cut and UK specific competitors are fighting for business VERY hard and to protect their business. Especially difficult as a company trying to break into the market.

• Recovery may lag the US

• Interest rate fluctuations make it difficult to set a rate card

• But we need to do this now• If we waited to start this business until recession over, we would

not be known by our customers and prospects and not in a position to benefit from the upturn

Mike Curran, PWC

London's window of opportunity - how much longer?

PwC

Mike CurranD

irector - SME Inbounds2

4 September 2009

PricewaterhouseCoopers

• Our approach to inbound market:

Introduction

September 2009Slide 28

Director - SME Inbounds

Doing Business guide Economic outlook


• Technology Executive Connections

• Focus on 5 areas

Introduction



Pathfinder


• Total Tax Contribution Survey

• 50% tax band – the elephant in the room!

• Enterprise survey results

• What works:

− Research & Development

− Corporation tax rate

− Withholding taxes

− Stock option rules

No.1: Taxation







− 42.9% of technology companies felt the current UK tax regime is quite/very supportive and encouraging at supporting enterprise in the UK.

− 76.5% of technology companies felt that 50% tax rate would have no impact on their business.

− 68.5% of technology companies felt business situation in next 24 months would be a little or a lot better.

No.1: Taxation







• What works:

− Research & Development

− Corporation tax rate

− Withholding taxes

− Stock option rules

No.1: Taxation




No.2: Current research overview




No.3: SME




No.4: People




No.6: Property




• Where the market will go

− Timing

− Globalisation

• Doing business in London

− Clear focus helps

− Costs manageable

− Great access

Conclusion

Slide 40September 2009Director - SME Inbounds


• PwC support

Conclusion


EssentialsVision to reality


Conclusion


Tech Media

PwC

Thank you

This document has been prepared for the intended recipients only. To the extent permitted by law, PricewaterhouseCoopers LLP does not accept or assume any liability, responsibility or duty of care for any use of or reliance on this document by anyone, other than (i) the intended recipient to the extent agreed in the relevant contract for the matter to which this document relates (if any), or (ii) as expressly agreed by PricewaterhouseCoopers LLP at its sole discretion in writing in advance.

© 2009 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

Mike Curran

Email: [email protected]

Tel: +44 (0)207 213 8190

Quick Poll

Think Now - Think Londonwww.thinklondon.com

Any Questions?Any Questions?

using the downturn to prepare for the upturn - webinar ist

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