value acceleration eikenzande
TRANSCRIPT
Accelerating Value End-to-End Value Creation Advisory Services
Paul van Doorn Founder & Owner Eikenzande BV - Business Acceleration
EIKENZANDE BV KONIJNENLAAN 42 2243ET WASSENAAR THE NETHERLANDS Tel +31 6 53261324
Eikenzande BV
September 2012
Agenda
1. Eikenzande
2. From Opportunity to Value End-to-End Value Creation Advisory Services
3. The Business Acceleration Framework
Annex • Eikenzande - Selected Transactions -> Contact Paul
2
Eikenzande BV ©
Professional Model & Qualifications
3
Over 28 years of Global experience in the ICT, Mobile & Technology industry as salesman, banker, CEO, board member and trusted advisor Actively serves clients - end-to-end – to assess, develop, prioritize, and successfully implement solutions. Role varies between temporary executive, hands-on business & people coach, deal maker, or board advisor Global Experience with Complex Assignments I leverage my global network to provide high quality hands-on expertise. A mix that can include acquisitions, capital raising or divestitures which I execute for my clients Passion: Unlock value with Business Acceleration Future Perfect Business Planning & Modeling to optimize Strategy, Organization, Technology, and M&A scenarios
IBM Network Services Account Manager
Nolan Norton & Co. Senior Manager US Consultancy
Thought leader technology platform implementations
Sprint International Founder & CEO Dutch Business
KPN Mobile CEO
KPN Executive Board Member KPN Intl, SVP M & A
KPNQwest Executive Board Member
Eikenzande BV Founder
NTT DoCoMo Tokyo Senior Advisor / Executive Director
3UK London Non Exec Board Member UK Mobile Carrier
Many M&A, Funding, Coaching and Strategy Assignments
Paul’s CV Experience, Capability
Unlock value through Business Acceleration • Future Perfect business planning & modeling • Hands-on coaching of talented people, strategy, organization, technology & corp. fin. / M&A scenarios • Manage market & transaction perception through clear positioning • Focus on fast growth sectors: Cloud/Mobile, Security, Social Media, Renewables & Agri Technology
www.linkedin.com/in/paulvandoorn
Eikenzande BV ©
Agenda
1. Eikenzande
2. From Opportunity to Value End-to-End Value Creation Advisory Services
3. The Business Acceleration Framework
Annex • Eikenzande - Selected Transactions -> Contact Paul
4
Eikenzande BV ©
Eikenzande Support Services Overview
From Opportunity to Value: Providing End-to-End Value Creation Advisory Services
Investment Selection
M&A Transaction
Support
Investment Value
Development
Investment Portfolio Management
End-to-End Value Creation Advisory
5
Eikenzande BV ©
Detail from Opportunity to Value – Service Steps
Investment Selection
M&A Transaction
Support
Investment Value
Development
Investment Selection
Investment Value
Development
Investment Portfolio Management
End-to-End Value Creation Advisory
M&A Transaction
Support
6
Eikenzande BV ©
Services – Investment Selection
Investment Strategy
Portfolio Market Scan
Risk & Plan Assessment
Investment strategy • Define Investment strategy
• Detailing: sector, company
type, development phase, risk profile and size
• Portfolio Risk requirements
• Result: clear company and risk profiles
Portfolio Market Scan • Market Research based on
Company & Risk profiles
• Per investment detail on investment goal and potential risks and support requirements
• Result: company list with detail and profile priority
Risk & Plan Assessment • Full Analysis of a specific
company
• Company detail on market, technology, product, finance, legal, governance, leadership issues
• Result: overview of risks and company value potential
7
Eikenzande BV ©
Services - M&A Transaction Support
M&A Support • Supporting shareholders
and or the company with an acquisition or a sale
• Project manage and coordinate various experts
• Conduct negotiations with focus on value, control and shareholder protection
• Result: a transaction with maximum value realized
Acquisition Support
Disposition Support
Cap. Raise Support
Carve Out & Transactions
Capital Raise Support • Supporting shareholders and
or the company with Raising capital from investors
• Project manage, coordinate experts and documentation
• Conduct negotiations with focus on value, control and shareholder protection
• Result: a successful investment
Carve-Out & Transaction • Supporting shareholders and
or the company with carving out a company
• Project manage, coordinate experts and documentation
• Conduct negotiations with focus on value, control and shareholder protection
• Result: a successful and stable carve out
8
Eikenzande BV ©
Key Services - Value Development
Business Acceleration • Advising shareholders and supporting and
coaching management to accelerate realization of potential company value
• Develop and review business plans, product and market propositions, distribution, production platforms and key reporting criteria.
• Regular structured management reviews
• Result: faster and larger realization of potential value
Portfolio Development Support • Advising, supporting and help managing the
development of a company investment portfolio
• Developing the optimal portfolio support model for developing stable value growth
• Analysis of portfolio company progress, required development and providing governance support
• Result: a well managed growing portfolio of companies
Business Acceleration
Portfolio Development
Key Service
9
Eikenzande BV ©
Agenda
1. Eikenzande
2. From Opportunity to Value End-to-End Value Creation Advisory Services
3. The Business Acceleration Framework
Annex
• Eikenzande - Selected Transactions -> Contact Paul
10
Eikenzande BV ©
Business Acceleration Framework
11
Business Coaching
Creating Superior
Business Value
M&A Exit Positioning
Product / Market Positioning
Business Plan & Reviews
“Result Realization”
“Perception Realization”
“Focus”
“Facts”
Approach based on 28 years of experience in the Global ICT & technology industry as a successful salesman, banker, CEO, board member, and trusted advisor
Eikenzande structured support can fast track company value Eikenzande BV ©
Realizing Results Reach Full Potential Through an Active Integral Approach
1. Output Thinking – back track from the perfect future § Describe goals and business plan as future perfect Information Memorandum in 2 to 3 years § Create right company perception and parameters; fast growth from Day One
2. Precise Goals – clear priorities
§ Closely align people and financial resources with business plan, and keep it that way § Mistakes lead to wasted time, resources and motivation § Provides decision review frame work supporting all to stay on plan
3. Clear and timely Decisions – focus, planning and preparation § Think ahead; timely and solid preparation always improve decision quality § Acceleration occurs only through a positive cycle of increased revenue & margin § Delayed or flawed decisions have an extremely negative long term effect
4. Integral Tracking & Tracing – always know where you are
§ Integral approach is superior: Include corporate finance in execution planning & decision § Actively, Fanatically check, review and adapt plan and metrics to business & valuation targets § Only a fool never changes his mind ;-)
12 If you don’t know where you are going, you will never get there!
1
2
3
4
Eikenzande BV ©
Realize Perception In a World of Recurring Revenues & Cloud Margins
1. Recurring Revenue – Effect of Delay and Acceleration is disproportionate Rule of 78 effect:
§ Speeding up has very big impact on Annual revenues § Slow decisions or delivery cut revenues significantly
2. Cloud Model – Marginal Costs drop disproportionate § Additional Clients, after fixed cost coverage, only minimally increase costs § Margin improvement significant when client numbers grow
3. Multiples – Perception is Reality
§ Fast growth has a significant positive effect on exit multiples § Clear Positioning attracts relevant buyers, additional synergies push multiple up § Potential Buyers see what they are looking for; Confirmation Bias is your friend
13
Revenue growth & clear positioning kick starts exceptional value growth !
Value Calculation : Revenue x EBITDA Margin x Company Multiples*)
*) EBITDA Multiples calculation as based on expected value of discounted future cash flows (DCF)
1
2
3
Eikenzande BV ©
Eikenzande Approach Aimed at Maximizing Value Only active integral method will accelerate revenue, margin & positioning
• Establish clear “future perfect” company goals • Plan how to get there • What resources are required • Financial Plan including valuation parameters
14
Solid Business Plan Foundation
• Review results, decisions and priorities against plan • Positively align personal strengths with company
requirements • Provide frame work for reflection & lessons learned
Business Coaching
• Overcoming temporary Skill needs by providing additional Professional Commercial, Financial or IT Strategy Support from extensive global network
Adding Professionals
• Integrate Corporate Finance skills from the start • Validate positioning versus likely buyers needs • Focus on the right relationships early on pays off • Business and Financial Plan always prepared
Manage M&A and funding processes
Timely preparation & focused execution creates superior results
1
2
3
4
Eikenzande BV ©