BOT Models – Pros and Cons Aviram Eisenberg

Standard BOT Model Build Locate a qualified Outsourcing Vendor Negotiate prices during operation phase Negotiate length of operation phase Negotiate formula for acquisition (Transfer phase): Total number of paid man years during operation phase Team profiles (roles, years of experience, skill sets) Operate Start with a pilot and increase the team steadily until reaching a minimum of 40 people (at least) for transfer phase Transfer Setup operation (facility, administration) Legal

Build

Locate a qualified Outsourcing Vendor

Negotiate prices during operation phase

Negotiate length of operation phase

Negotiate formula for acquisition (Transfer phase):

Total number of paid man years during operation phase

Team profiles (roles, years of experience, skill sets)

Operate

Start with a pilot and increase the team steadily until reaching a minimum of 40 people (at least) for transfer phase

Transfer

Setup operation (facility, administration)

Legal

Standard BOT Model - Pros Short setup time Low risk during build time: No setup fee involved Pay as you grow model Low risk during operate time The vendor will be obligated to agreed upon KPIs No risks of operations in a foreign country – you have the time to prepare for it

Short setup time

Low risk during build time:

No setup fee involved

Pay as you grow model

Low risk during operate time

The vendor will be obligated to agreed upon KPIs

No risks of operations in a foreign country – you have the time to prepare for it

Standard BOT - Cons Not all good vendors will agree to BOT - minimize the selection It is a provider that has a different agenda then the customer Price tag for the transfer phase will be high The vendor looses its “golden eggs chicken” High risk during Transfer phase HR retention risk Operational risk – facility, administration, legal

Not all good vendors will agree to BOT - minimize the selection

It is a provider that has a different agenda then the customer

Price tag for the transfer phase will be high

The vendor looses its “golden eggs chicken”

High risk during Transfer phase

HR retention risk

Operational risk – facility, administration, legal

Accelerated BOT This is a unique model offered exclusively by Ignite Build Locate a high-tech company that meets the customer’s profile and is in financial difficulty Ignite negotiate acquisition price and proposes to the customer team profiles, operational price, minimal length of operation phase and transfer price Ignite acquires the company against customer’s commitment to agreed upon operational price, minimal length of operation phase and price tag/formula for transfer phase Operation Ignite assumes full responsibility during operation phase HR retention On site (Israel) management Offshore management Building processes and methodologies including for the customer’s Israeli staff Identifying the right segments of the product that can be offshored with minimal risk Commitment to safe guard the customer’s IP Maintain the customer’s corporate identity The customer is able to disengage even before the end of the operation period if Ignite fails to meet agreed upon KPIs Transfer After the minimal length of operational phase, the customer may decide to extend operational phase, disengage or perform the transfer If transfer occurs, the entire facility, infrastructure and HR are transferred as-is Only legal effort is required

This is a unique model offered exclusively by Ignite

Build

Locate a high-tech company that meets the customer’s profile and is in financial difficulty

Ignite negotiate acquisition price and proposes to the customer team profiles, operational price, minimal length of operation phase and transfer price

Ignite acquires the company against customer’s commitment to agreed upon operational price, minimal length of operation phase and price tag/formula for transfer phase

Operation

Ignite assumes full responsibility during operation phase

HR retention

On site (Israel) management

Offshore management

Building processes and methodologies including for the customer’s Israeli staff

Identifying the right segments of the product that can be offshored with minimal risk

Commitment to safe guard the customer’s IP

Maintain the customer’s corporate identity

The customer is able to disengage even before the end of the operation period if Ignite fails to meet agreed upon KPIs

Transfer

After the minimal length of operational phase, the customer may decide to extend operational phase, disengage or perform the transfer

If transfer occurs, the entire facility, infrastructure and HR are transferred as-is

Only legal effort is required

Accelerated BOT - Pros Low risk during build time No setup fee involved – Ignite finances the acquisition Low risk during operate time Ignite will be obligated to agreed upon KPIs No risks of operations in a foreign country – customer has the time to prepare for it Lower prices during operation phase No need for sales and marketing – only lean management Low risk during transfer time HR retention is safer – all employees already know and feel the customer’s corporate identity from day one No need to find a new facility Local management already exist Low legal risk - M&A is with an Israeli company based on agreed upon formula

Low risk during build time

No setup fee involved – Ignite finances the acquisition

Low risk during operate time

Ignite will be obligated to agreed upon KPIs

No risks of operations in a foreign country – customer has the time to prepare for it

Lower prices during operation phase

No need for sales and marketing – only lean management

Low risk during transfer time

HR retention is safer – all employees already know and feel the customer’s corporate identity from day one

No need to find a new facility

Local management already exist

Low legal risk - M&A is with an Israeli company based on agreed upon formula

Accelerated BOT - Cons Longer setup time Commitment for a large team (40 people minimum) right from the start

Longer setup time

Commitment for a large team (40 people minimum) right from the start

Q&A Aviram Eisenberg CEO IGNITE www.igniteoutsourcing.com [email_address]

Aviram Eisenberg

CEO

IGNITE

www.igniteoutsourcing.com

[email_address]