Value Acceleration Eikenzande


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Value Acceleration Eikenzande

  1. 1. Eikenzande BV Accelerating Value End-to-End Value Creation Advisory Services September 2012Paul van Doorn EIKENZANDE  BV    Founder & Owner KONIJNENLAAN  42   2243ET  WASSENAAR  Eikenzande BV - Business Acceleration THE  NETHERLANDS   Tel      +31  6  53261324
  2. 2. Agenda1.  Eikenzande2.  From Opportunity to Value End-to-End Value Creation Advisory Services3.  The Business Acceleration Framework Annex •  Eikenzande - Selected Transactions -> Contact Paul 2 Eikenzande BV ©
  3. 3. Professional Model & Qualifications 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 Paul’s CV Experience, Capability IBM Network Services Account Manager Over 28 years of Global experience in the ICT, Mobile & Technology industry as salesman, banker, CEO, board Nolan Norton & Co. Senior Manager US Consultancy member and trusted advisor Thought leader technology platform implementations Actively serves clients - end-to-end – to assess, develop, Sprint International Founder & CEO Dutch Business prioritize, and successfully implement solutions. Role varies KPN Mobile CEO between temporary executive, hands-on business & people coach, deal maker, or board advisor KPN Executive Board Member KPN Intl, SVP M & A KPNQwest Executive Board Member Global Experience with Complex Assignments I leverage my global network to provide high quality hands-on Eikenzande BV Founder expertise. A mix that can include acquisitions, capital raising NTT DoCoMo Tokyo Senior Advisor / Executive Director or divestitures which I execute for my clients 3UK London Non Exec Board Member UK Mobile Carrier Passion: Unlock value with Business Acceleration Many M&A, Funding, Coaching and Strategy Assignments Future Perfect Business Planning & Modeling to optimize Strategy, Organization, Technology, and M&A scenarios 3 Eikenzande BV ©
  4. 4. Agenda1.  Eikenzande2.  From Opportunity to Value End-to-End Value Creation Advisory Services3.  The Business Acceleration Framework Annex •  Eikenzande - Selected Transactions -> Contact Paul 4 Eikenzande BV ©
  5. 5. Eikenzande Support Services Overview End-to-End Value Creation Advisory M&A Investment Transaction Value Support Development Investment Investment Portfolio Selection ManagementFrom Opportunity to Value: Providing End-to-End Value Creation Advisory Services 5 Eikenzande BV ©
  6. 6. Detail from Opportunity to Value – Service Steps End-to-End Value Creation Advisory M&A Investment Transaction Value Support Development Investment Investment Portfolio Selection Management Investment M&A Investment Selection Transaction Value Support Development 6 Eikenzande BV ©
  7. 7. Services – Investment Selection Investment Portfolio Risk & Plan Strategy Market Scan AssessmentInvestment strategy Portfolio Market Scan Risk & Plan Assessment•  Define Investment strategy •  Market Research based on •  Full Analysis of a specific Company & Risk profiles company•  Detailing: sector, company type, development phase, •  Per investment detail on •  Company detail on market, risk profile and size investment goal and technology, product, potential risks and support finance, legal, governance,•  Portfolio Risk requirements requirements leadership issues•  Result: clear company and •  Result: company list with •  Result: overview of risks risk profiles detail and profile priority and company value potential 7 Eikenzande BV ©
  8. 8. Services - M&A Transaction Support Acquisition Disposition Cap. Raise Carve Out & Support Support Support TransactionsM&A Support Capital Raise Support Carve-Out & Transaction•  Supporting shareholders •  Supporting shareholders and •  Supporting shareholders and and or the company with an or the company with Raising or the company with carving acquisition or a sale capital from investors out a company•  Project manage and •  Project manage, coordinate •  Project manage, coordinate coordinate various experts experts and documentation experts and documentation•  Conduct negotiations with •  Conduct negotiations with •  Conduct negotiations with focus on value, control and focus on value, control and focus on value, control and shareholder protection shareholder protection shareholder protection•  Result: a transaction with •  Result: a successful •  Result: a successful and maximum value realized investment stable carve out 8 Eikenzande BV ©
  9. 9. Key Services - Value Development Business Portfolio Acceleration Development Key ServiceBusiness Acceleration Portfolio Development Support•  Advising shareholders and supporting and •  Advising, supporting and help managing the coaching management to accelerate development of a company investment realization of potential company value portfolio•  Develop and review business plans, product •  Developing the optimal portfolio support and market propositions, distribution, model for developing stable value growth production platforms and key reporting criteria. •  Analysis of portfolio company progress, required development and providing•  Regular structured management reviews governance support•  Result: faster and larger realization of •  Result: a well managed growing portfolio of potential value companies 9 Eikenzande BV ©
  10. 10. Agenda1.  Eikenzande2.  From Opportunity to Value End-to-End Value Creation Advisory Services3.  The Business Acceleration Framework Annex •  Eikenzande - Selected Transactions -> Contact Paul 10 Eikenzande BV ©
  11. 11. Business Acceleration FrameworkApproach based on 28 years of experience in the Global ICT & technology industry as asuccessful salesman, banker, CEO, board member, and trusted advisor Business Coaching “Result “Focus” Realization”Product / Market Business PlanPositioning & Reviews Creating Superior Business Value “Perception “Facts” Realization” M&A Exit Positioning Eikenzande structured support can fast track company value 11 Eikenzande BV ©
  12. 12. Realizing ResultsReach Full Potential Through an Active Integral Approach 11.  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 One2.  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 33.  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 44.  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 ;-) If you don’t know where you are going, you will never get there! 12 Eikenzande BV ©
  13. 13. Realize PerceptionIn a World of Recurring Revenues & Cloud Margins Value Calculation : Revenue x EBITDA Margin x Company Multiples*) 1 Recurring Revenue – Effect of Delay and Acceleration is disproportionate 1.  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 2.  §  Additional Clients, after fixed cost coverage, only minimally increase costs §  Margin improvement significant when client numbers grow 3 Multiples – Perception is Reality 3.  §  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 friendRevenue growth & clear positioning kick starts exceptional value growth ! 13*) EBITDA Multiples calculation as based on expected value of discounted future cash flows (DCF) Eikenzande BV ©
  14. 14. Eikenzande Approach Aimed at Maximizing ValueOnly active integral method will accelerate revenue, margin & positioning •  Establish clear “future perfect” company goals 1 Solid Business Plan •  Plan how to get there Foundation •  What resources are required •  Financial Plan including valuation parameters •  Review results, decisions and priorities against plan •  Positively align personal strengths with company 2 Business Coaching requirements •  Provide frame work for reflection & lessons learned •  Integrate Corporate Finance skills from the start 3 Manage M&A and •  Validate positioning versus likely buyers needs funding processes •  Focus on the right relationships early on pays off •  Business and Financial Plan always prepared •  Overcoming temporary Skill needs by providing 4 Adding Professionals additional Professional Commercial, Financial or IT Strategy Support from extensive global networkTimely preparation & focused execution creates superior results 14 Eikenzande BV ©