Professional Services B2B Agency Business Pitch

Professional Services B2B Agency Business Pitch Prepared by: Pete Chatziplis New York December 2009 York,

Contents The Concept Market Size and Potential Competition C titi The Operating Model Organizational Structure Funding Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 1

The Business Case Create a B2B agency that will provide intelligence on quality and demand g q y for professional services. Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 2

The Market Case - for Users Do you know which professional services firm to go to? Do you know who to call there? Did you get enough offers/ the best pricing? Did you get the attention/service that you expected? Did your service provider drop the ball? (due to limited bandwidth or skills) How can you verify experience indicated in the pitch? Would you trust a small/new company? Can you trust your professional services partner if you want to go global? How reliable are they? Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 3

The Market Case - for Suppliers Are you satisfied with your business development/ lead generation skills? (i t ti kill ? (in terms of cost efficiency and f t ffi i d results) Do you spend too much time and effort on lead generation and pitching? Is it a distraction to core skills? Would you outsource marketing/business development? Do you know where you stand in the market versus the competition? (pricing, skills) Do you know how clients rate yours and your competitors’ services? Do you want to standardize marketing message? Do y g g you have sufficient control over it? Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 4

Description of Services Directory of professional services firms ( y p (law, audit, consulting) and detailed services per firm Indicative fees per engagement/hourly rates Quality of services and bandwidth per firm and service line: voluntary (through company provided SOQs headcount CVs SOQs, headcount, CVs, capacity utilization) involuntary (through customer feedback, market intelligence) List of RFPs (“lead aggregator”) Lead generation/market intelligence Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 5

Additional Services Industry Research for professional services Marketing/Business Development Outsourcing: Development of marketing material, brochures Organization of event and conferences’ g Templates for proposals, legal documents, pitches PR consulting Administration support/outsourcing (for small firms and freelancers) Talent acquisition and career development: CV and j b d t b k d job databank Employer information Candidate mentoring and coaching Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 6

Market Size Management Consulting Services: $300billion approx. g globally of which 50% in North America: y Business Consulting (IT, HR, Strategy, Operations) Tax Consulting, M&A/Transaction support Risk Consulting Forensics, Litigation Consulting, Forensics Financial Advisory (Corporate Finance/Restructuring) Audit Services: $250 billion approx. g pp globally of which y 50% in North America: Big4 firms prevail in public/large corporation space Smaller practices focus on small/medium size firms; this segment attracting increased competition Legal Services Services: $500 billion approx. g g pp globally y Fragmentation both at national and global level Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 7

Management Consulting Services A fragmented, growing market (15% growth 2000-08) 2000-08) Cyclical business; challenging to grow globally Big 4 restricted by independence limitations Increasingly a global business: North American market grew 9% in 2000-08 while global 31% 2000- North America accounts for 47% of total market down from 80% in 2000 Management Consulting by Region 2008 Management Consulting Market Shares 2008 Accenture Rest of World 7.0% Deloitte 18% 4.5% PWC North America 4.3% 48% * CapGemini Other Top 10 68.6% 31% 3.9% E&Y 3.7% KPMG Europe 3.6% 34% McKinsey 1.8% BCG 0.7% Booz Allen * E l d IBM Gl b l Business S i Excludes Global B i Services 1.2% % Source: Company Reports and Internet Research BDO $19.6 billion in 2008 0.6% Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 8

B2B Agency Competition No universally established/large competitors Various companies offer some comparable services: Firm Directory Company Profiles Lead Generation L dG ti Industry Research Event Planning “Word of mouth” a significant source of market intelligence Increasing use of Web 2.0 tools for market insights g g (social networking sites, blogs) Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 9

B2B Competition (indicatively) Industry research/Lead generation/Marketing support Company Directories/Profiles Services’ Sourcing Firm reviews/intelligence for candidates Event planning Plus: various blogs Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 10

Key partners and value proposition Professional Services firms: Tap into new customers /projects; increase visibility Outsource or decrease business development / marketing budget Free up resources to focus on core competence Establish a fair competition field (reduce “can do too” approach) can too Get market intelligence Protect brand through controlling marketing message Experienced professionals (ex-professional services insiders): E i d f i l (ex- ( f i l i i id ) Extra income Opportunity to stay relevant in the market Directory and ratings firms: Increase client pool Enhance product offerings by linking-up to third party research/reviews linking- Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 11

Operating Model Simple IT infrastructure (online database) Database administrators feed info: Proprietary research Company supplied information: p p y pp possibility to safeguard confidential y g company information (access upon approval/confidentiality agreement) Post- Post-project completion polls (regarding quality of services) Blogs, Blogs discussion forums and newsletters (to capture market views and eyeballs) Pricing of services: g For Professional Services firms: membership fee For users of Professional Services: pay per purchased report Product basis for additional services Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 12

Organizational Structure Flexible/Scalable Organizational Structure: Initially US only; can add overseas offices later Research collateral Can be outsourced or procured on a project basis Researchers (5-10, FT/PT): experienced ex-auditors/lawyers/consultants (5- ex- (Unemployed/Underemployed/Retired from large professional services firms) or of C- C- Suite background (CFOs, Internal Auditors, CEOs etc)) Business development/sales (5-6)(5- Administrative support (initially flexible): part- part-time CFO outsourced admin/IT support Advisory Board (TBA): Ad i B d (TBA) Pete Chatziplis, CFA, FCCA: 10+ years experience in Corporate Finance/Consulting in Big4 specialization in financial services international experience Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 13

Impact of Proposal Total global market for professional services: $1trn approx. 20% of professional services firms’ revenues spent on SG&A: $200bn approx. $60- $60-70bn Consulting $80- $80-100bn Legal $50bn Assurance Let’s l i L t’ claim: 1-3% on SG&A budgets for lead generation and business development through agency = $2-5bn potential revenues $2- 1-2 reports for 30-50% of US li t d companies per year t f 30- f listed i Potential agency services market size: $2-5 bn $2- ( (not including additional services: selection, events, consulting etc) g , , g ) Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 14

Funding Some positive points: Investment is scalable (range of services, firms, regions covered) Investment depends on competencies contributed by equity and business partners Possibility of flexible staffing (project based/freelance research) Low IT and fixed infrastructure requirements (low complexity/ outsourcing) 5 year investment horizon/2 year development phase ramp up the launching team (5-10 people work for 6-12 months: IT (5- 6- platform, research collateral, establish business partnerships) p , , p p ) 10- 10-15 people development team (depending on whether full-time or full- part- part-time) for 2-5 years 2- Let s Let’s talk numbers Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 15

Exit Exit horizon: 5 years Exit Strategy: Strategic Investor (to gain traffic/ cross selling synergies) IPO Potential Revenues: $10- $10-50 m in 3-5 years for base case 3- Further revenues from additional services Returns to exceed hurdle rate More info available upon request Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 16

Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009 17

Professional Services B2B Agency Business Pitch

by Pete Chatziplis on Jan 22, 2010

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Professional Services B2B Agency Business Pitch — Presentation Transcript