Achieving the next level of corporate growth - navigating “no man’s land”

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No Man’s Land is a term that describes the transition period for a growth company. Successful entrepreneurs that start and lead growth companies experience this period that can threaten their very survival.

For an entrepreneur to successfully transition his or her company four key areas must be a clear focus. We describe these actions as the 4 M’s and they will be addressed:
Marketing – maintaining important customer relationships
Management – objective review
Model - maintaining margins
Money – adequate capitalization
Other key areas of focus are corporate structure and compliance. Guidance from a seasoned corporate and transactional counsel is invaluable with respect to corporate matters, growth, capital raising and any transactional matters.

Published in: Business, Economy & Finance
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Achieving the next level of corporate growth - navigating “no man’s land”

  1. 1. Presenters: Michael Gioseffi, Partner Alexander B. Kasdan, Managing Director William F. Capps, Partner, Chairman, Corporate Department ACHIEVING THE NEXT LEVEL OF CORPORATE GROWTH: NAVIGATING “NO MAN’S LAND” August 29, 2013
  2. 2. 1 Michael Gioseffi is a partner of Newport Board Group. Based in Los Angeles, Mike is an experienced CEO who has a record of achieving sustainable sales and earnings growth with domestic, international, public and private companies, both large and small. He has done so in various industries, including technology and manufacturing. His accomplishments include bringing new products and technology to underserved markets and turning around underperforming businesses. For example, Mike was recruited by a Mezzanine investment firm as the Interim CEO of one of their portfolio holdings, with the goal of turning around the company. Within one year he reorganized the organization, stabilizing sales, renewing manufacturing licenses and registrations and implementing improved inventory management and production order scheduling. He managed the business through Chapter 11, succeeding in reorganizing problematic historical balance sheet liabilities. Mike has also turned around and restructured companies in the digital imaging, mobile computing, and high purity/specialty fluid handling industries. (626) 253-4799 www.newportboardgroup.com Mike.Gioseffi@ NewportBoardGroup.com
  3. 3. 2 Alexander B. Kasdan is a Managing Director at DelMorgan & Co. He has more than twenty years of investment banking, real estate, corporate law and corporate strategy experience. Alex has executed over 100 domestic and cross-border transactions totaling more than $10 billion in overall volume in a variety of industries. Prior to joining DelMorgan, Alex founded Convergence Capital Partners, LLC, a boutique investment banking advisory and real estate investment firm and was an investment banker at Barrington Associates, Peter J. Solomon Company, Credit Suisse First Boston and Merrill Lynch. Alex practiced law with O’Melveny & Myers LLP (formerly O’Sullivan Graev & Karabell LLP) and Paul, Hastings, Janofsky & Walker LLP (formerly Battle Fowler LLP), where he specialized in mergers and acquisitions, private equity and corporate finance transactions. In addition, Alex served as Corporate Counsel in charge of business development at Schlumberger Ltd., a global oilfield and information services company. Alex graduated magna cum laude from Middlebury College with a B.A. degree in Economics and Italian and was elected to Phi Beta Kappa during his junior year. In addition, he holds a J.D. degree from Columbia University Law School and has studied at the University of Florence in Italy. Alex is admitted to the Bar in the State of New York. Alex is a Senior Advisor to Governance and Transactions LLC, an advisory firm established in 2003 by Mr. James L. Gunderson, former Secretary and General Counsel of Schlumberger Limited, to assist boards, management and owners with corporate governance, compliance, structuring and strategic transactions. 100 Wilshire Blvd. Suite 750 Santa Monica, CA 90401 (310) 980-1718 www.delmorganco.com ak@delmorganco.com
  4. 4. 3 Bill Capps is a partner and chairman of the Corporate Department. He represents some of the Firm's higher visibility corporate and banking clients in many business matters, with particular emphasis on securities matters (including mergers and acquisitions and representation of Special Committees), international matters, real estate and building materials companies, corporate finance, franchising, executive compensation planning, litigation management and health care transactions. His experience includes serving substantial corporate clients in all business matters. In addition, Bill is a licensed real estate broker. Bill holds a J.D. degree from Boalt Hall School of Law, University of California, Berkeley, 1973, and a B.A. degree with high honors from Whittier College, 1968. Representative Experience: •  Representation of Fortune 500 companies in all aspects of international transactions •  Representation of building materials industry •  Representation of significant families in Southern California in business and personal planning including succession planning •  Strategic litigation management for major disputes 1900 Avenue of the Stars 7th Floor Los Angeles, CA 90067 (310) 201-3513 www.JMBM.com Wcapps@JMBM.com
  5. 5. Achieving)the)Next)Level)of) Corporate)Growth) Naviga&ng(“No(Man’s(Land”( ( Mike)Gioseffi)–)Partner,)Newport)Board)Group) Alex)Kasdan)–)Managing)Director,)DelMorgan)&)Co.) William)F.)Capps)–)Partner,)Chairman,)Corporate) Department,)Jeffer)Mangels)Butler)&)Mitchell,)LLP) 8/28/13
  6. 6. 2 © 2007 Tatum, LLC All rights reserved. “No$Man’s$Land”$is#a#term#that#describes#the#transition#period#for#a# growth#company.##Successfully#navigating#this#growth#stage#is#critical#as# it#can#threaten#the#company’s#survival.###For#an#entrepreneur#to#be# successful#four#key#areas#must#be#a#clear#focus#(4#M’s):# Marketing#–#expanding#customer#relationships## Management+–#building#a#high#capability#team## Model#–#scaling#while#maintaining#margins## Money#–#adequate#capitalization#to#grow# # We#will#discuss#“No$Man’s$Land”$including#guidance#with#respect#to# corporate+matters,#growth,#capital+raising+and#any#transactional+ matters.## # ### #
  7. 7. 3 © 2007 Tatum, LLC All rights reserved. “Gazelles”:)A)Vital)Force)In)The)Economy) •  High%growth%companies%–%key%sector%of%the%U.S.%economy.%% •  “Gazelles”%=%revenue%grows%at%least%20%%over%a%four=year%period.%% •  All%industries%and%all%geographical%areas.%% •  SEmulate%a%disproporEonate%porEon%of%job%creaEon.%% •  Many%are%acquired%as%R&D%laboratories%for%corporate%America.% •  Middle%market%companies%“hit%the%wall”%in%their%adolescence.% •  Founder%must%transfer%his/her%capabiliEes%to%the%organizaEon.%% •  Get%to%economic%scale%–%i.e.%profitable%growth.% •  Looking%toward%possible%exit,%build%leverage%that%next%owner%can%take%to% next%level.% #
  8. 8. 4 4 •  Facing%rapid%change%and% uncertainty.% •  “adolescent”%stage%of%corporate% growth.% •  Straining%operaEons.% •  Customer%service%is%suffering.% •  Management%is%thin.% •  Cash%is%low,%in%spite%of% profitability.% How)Do)You)Know)You)Are)In)“No(Man’s(Land”?) •  It’s%harder%to%moEvate%— must%start%to%pay% compeEEve%wages.% •  Entrepreneur%is%losing% effecEve%control.% •  The%company’s%valuaEon% is%low.%
  9. 9. 5 © 2007 Tatum, LLC All rights reserved. Adolescent)Stage)of)Business) •  The%reward%for%geZng%out%of%“No#Man’s#Land”#i.e.%over%100% employees%is%greater%than%ever.% •  Entrepreneurs%have%prospect%of%growing%from%100%to%1000% employees%faster%than%from%50%to%100%employees.%
  10. 10. 6 © 2007 Tatum, LLC All rights reserved. MeeWng)the)Growth)Challenge)) •  Realign%with%your%Market% •  Hire%the%Right%Senior%Management% •  Develop%a%New,%Profitable%Economic%Model%at%Scale% •  Raise%Money%You%Need%to%Finance%Growth%
  11. 11. 7 7 Customers%&%Business%are%in%sync% Market)Alignment%
  12. 12. 8 8 •  Increasing%quality%problems/complaints.% •  Increasing%price%pressures/margin%squeeze.% •  Diminishing%compeEEve%advantage(s).% •  New%products/services%created%out%of%need%for%revenue%or% “innovaEon%desperaEon”,%not%customer%needs.% •  Lack%of%confidence%that%your%own%value%proposiEon%is% compelling.% Misalignment)with)Your)Market:)Signs)
  13. 13. 9 9 •  Core%customer%needs%constantly%change%and%evolve.% •  Growth%causes%entrepreneur%to%have%less%contact%with%customers.%% •  Expanding%sales%means%new%customers%with%different%needs.%% •  No%coordinated%processes%to%saEsfy%disparate%customer%needs% consistently.% •  Falling%behind%new,%changing%compeEtors%% •  Company%becomes%internally%focused%=%dealing%with%strain%of% overload%and%issues%of%growth.% # Losing)Alignment)
  14. 14. 10 10 Regain)Alignment:)Make)and)Fulfill)New)Promises)) •  Realign%with%your%Market% •  Redefine%value%proposiEon;%make%new% promises%to%new%customers%–%and% deliver% •  “mess%up%the%business”% •  Build%customer%relaEonship%to% re=create%inEmacy% •  Don’t%try%to%be%“all%things%to%all% customers”% )) )) •  SystemaEze%delivery%of% value% •  InsEtuEonalize%and%scale% the%entrepreneur’s% personal%abiliEes% •  Get%the%enEre%business% good%at%doing%what% entrepreneur%originally% did% )) ))
  15. 15. 11 Management)–)Professional)Team) ) •  Owners/entrepreneurs%stretched% •  Long%Eme%and%loyal%employees%=over% their%heads% •  All%looking%to%CEO%for%direcEon% •  Entrepreneur%doesn’t%want%to%lose% touch/control% % •  Can’t%afford%to%hire%senior%team% 11 Professionalize% management%–% preserve%culture,% decision=making% that%made% company% successful.% )
  16. 16. 12 © 2007 Tatum, LLC All rights reserved. Management)Priority:)Hire)New)Team) •  Company%has%grown%too%large%and%complex% •  Must%delegate%to%a%professional%team% =  Give%up%control%to%regain%control% •  For%example,%add%a%CFO%who% understands%what%your%capital% requirements%will%be%1=3%years%from% now,%and%how%to%arEculate%those% needs%to%the%capital%markets% •  Get%fresh%ideas%and%perspecEves%% Arrival%of%new% managers% provides%a%“high% place”%from% which%the% founder%can%view% the%business.%%
  17. 17. 13 •  Entrepreneur’s%grasp%of%business%model%was%intuiEve—must%now%formalize/share% with%the%enEre%company.% •  Determine%how%value%delivery%system%can%be%profitable%at%larger%scale% •  Target%demand%volume%to%facilitate%step=fixed%infrastructure%costs.% •  Invest%in%infrastructure%ahead%of%demand,%providing%sufficient%liquidity.% •  Meet%your%targeted%growth%trajectory%and%profit%margins.% •  Break%operaEons%down%into%discrete,%repeatable%funcEons%and%processes.% ++ ++ Model:)Ramp)Up)Infrastructure)
  18. 18. 14 14 •  Historical%accounEng%data%is%not% relevant%to%forecasEng%future.% •  Cash%flow%ramificaEons%are%not% fully%defined.%% •  Emerging%strategic%and%markeEng% issues%not%fully%evaluated.% •  Failure%to%idenEfy%and%track%key% operaEonal%indicators.% # Forward[Looking)Model)Using)Key)Indicators)) •  You%can%regain%financial%control% of%your%business%by:% •  Developing%a%forward% thinking%model%to%manage% strategically%into%the%future,% and% % •  ReporEng%on%key%operaEonal%%%% indicators%on%a%daily/weekly% basis% + Shortcomings)of)financial)accounWng)
  19. 19. 15 Money)[)Capital)Markets)Risk)ConWnuum) SeedCapital VentureCapital Factoring Asset-BasedFinancing SubordinatedDebt CommercialFinancing SeniorDebtFinancing Cost of Capital Business Maturity 15 •  CriEcal%need%for%cash%to%fund%growth.%% •  Don’t%under=esEmate%the%capital%needed%to%emerge%from%“No#Man’s#Land”.% •  Emerging%companies%struggle%to%raise%capital%=%perceived%to%be%too%risky.%% •  Must%deal%with%prospecEve%lenders%and%investors%based%on%business%performance.%% •  Biggest%hurdle%is%funder’s%percepEon%of%risk.% •  Strategic%buyer%will%focus%on%evaluaEng%downside%risk.% ++ +
  20. 20. 16 Fundamentals)of)Successful)Capital)Raising) •  Know%how%much%you%really%need%&%when% you%will%need%it% •  Raise%capital%to%fund%growth%consistent% with%vision,%values%and%risk%appeEte% •  Know%how%the%money%will%be%spent% •  Debt%financing:%know%what%will% collateralize%loan%and%how%to%repay%or%% provide%exit%for%investors% •  Know%and%approach%appropriate%sources% •  Develop%a%world%class%presentaEon% 16 Obtain%efficient%access% to%capital,%sufficient%to% fund%cash%needs%for%the% predicted%level%of% growth.%
  21. 21. 17 The)High)Cost)of)“Perceived”)Risk) 17 Perpetual%cash%flow%problems% Unable%to%make%needed%investments% Unable%to%hire%key%people% Fund%raising%distracts%from%day%to%day% management%%
  22. 22. 18 © 2007 Tatum, LLC All rights reserved. Money:)Raise)Capital)) •  Investors%require%a%hypothesis%about%how%they%will%earn%their%targeted% rate%of%return%% •  The%entrepreneur%can% see%around%the%corner ,%but%fails%to%understand% how%to%explain%this%to%the%investor.% •  With%strong%management%brought%in%to%help%the%entrepreneur,%the% company%can%become%radically%objecEve%about%the%business%model.% •  QuesEons%to%ask:%% •  What%risks%in%the%business%are%eliminated%with%money?%% •  Are%you%ready%for%outside%equity%and%the%transparency%required%to%make%it% work?% •  How%do%you%feel%about%losing%a%degree%of%control?% )) +
  23. 23. 19 © 2007 Tatum, LLC All rights reserved. Look)Forward)to)a)TransacWon—From)The)Beginning) •  Run%the%company%with%an%eye%on%your%exit%strategy% •  Who%will%you%sell%the%company%to—and%at%what%valuaEon?% •  What%“story”%will%an%investment%banker%tell%prospecEve%buyers%about% your%company’s%growth%potenEal?% •  Are%you%running%the%company%today%by%evaluaEng%performance% against%metrics%that%measure%your%progress%toward%fulfilling%that% “story?”%% •  What%leverage%are%you%building—to%enable%a%buyer%to%scale%up%the% business%further?%
  24. 24. 1" The$DelMorgan$Advantage$ Although(many(compe0tors(can(claim(specializa0on(and(exper0se(in(one(or(two(of( these(areas,(few(if(any(can(claim(all(to(the(same(extent(as(DelMorgan.(  Provide"a"differen-ated"level"of" investment"banking"exper-se"and" service"to"companies"and"their" owners"  Focus"on"cri-cal"areas"that"result"in" substan-al"value=add"for"our"clients" Investment$ Banking$Exper:se$ Interna:onal$ Presence$ Middle=Market$ Focus$ Industry$ Knowledge$
  25. 25. 2" Global$Investment$Banking$Exper:se$ DelMorgan(is(a(full=service(investment(bank(providing(cross=border(advisory( services(to(middle(market(companies.( Maximize$ Value$ Mergers$&$ Acquisi:ons$ Valua:on$&$ Fairness$Opinions$ Restructuring$ Capital$Raising$ Dives:tures$ Recapitaliza:ons$
  26. 26. 3" DelMorgan$&$Co.$ For"over"30"years,"the"principals"of"DelMorgan"&"Co."and"its"affiliates"have"been"providing"innova-ve"investment" banking"services"to"public"and"private"companies"for"a"broad"range"of"transac-ons"exceeding"$250"billion"in" aggregate"value."Whether"a"client’s"needs"are"complex"or"conven-onal"in"nature,"DelMorgan"professionals"apply" their"exper-se"to"provide"results." " " " " " " " " " " " " " " " " We"take"great"pride"in"our"ability"to"assist"our"clients"in"mee-ng"their"goals"and"objec-ves."We"staff"an"unusual" number" of" senior" management" members" on" every" engagement" to" ensure" our" clients" receive" specialized" aOen-on"and"advice."We"are"commiOed"to"an"uncompromising"set"of"ethics"and"diligently"provide"the"highest" level"of"service.""Our"professionals"are"dedicated"to"providing"-mely,"relevant"industry"informa-on"and"analyses.""" Corporate$Finance$ Strategic$Advisory$ Recapitaliza:ons$ Mergers$&$Acquisi:ons$ Restructuring$ Transac:ons$$ executed$by$$ DelMorgan$principals$$ total$over$$250Bn$$ in$aggregate$value$$ Cross=border$transac:ons$
  27. 27. 4" DelMorgan’s$Approach$ Beginning"with"a"clear" understanding"of"the"client’s" business"and"the"overarching" strategic"goals" A"rigorous"analysis"of"the"strategic" alterna-ves"–"including"the"M&A" transac-on"–"and"the"value"crea-on" that"may"result" A"candid"assessment"of"the" poten-al"piUalls"–"in"the" strategy"and"in"the"transac-on" execu-on"process"–"and"ways"to" manage"them" A"process"that"is"tailor=made"to" the"specific"client"situa-on"and" objec-ves" Client$
  28. 28. 5" DelMorgan’s$Approach$(cont’d)$ A"global"approach"to"every" transac-on"–"reflec-ng"DelMorgan’s" exper-se"in"cross=border"transac-ons," our"rela-onships"around"the"world" and"our"comprehensive"approach"to" every"engagement" A"thoughUul"approach"to"all"the" par-es"who"may"be"involved"in"the" transac-on,"their"interests"and"their" mo-va-ons" Ac-ve"engagement"with"poten-al" counterpar-es"through"all"phases" of"the"transac-on"(marke-ng"and" persuasion,"informa-on"exchange" and"due"diligence,"nego-a-on"and" closing)" An"aggressive"approach"to" iden-fying"and"pursuing"poten-al" synergies"in"pursuit"of"a"“win/win”" transac-on,"which"can"be"the"basis" for"true"value"crea-on" Client$
  29. 29. 6" DelMorgan’s$Dis:nguishing$Core$Business$Principles$   DelMorgan"bring"significant"intellectual"firepower"to"each"client"situa-on"   Treat"each"engagement"as"a"new"and"exci-ng"problem"to"be"solved,"and"we"do"not"follow"a" “standard"approach”"but"rather"tailor"our"approach"to"each"situa-on"   Think"outside"the"box,"we"iden-fy"and"analyze"all"op-ons"in"conduc-ng"a"strategic" assessment,"and"we"strive"to"be"recognized"as"a"thought"leader"in"each"of"our"assignments"   Our"professionals"combine"intellectual"flexibility"with"a"level"of"sophis-ca-on"that"is" unmatched"in"virtually"any"other"financial"services"firm"   DelMorgan’s"professionals"have"extensive"transac-onal"experience"in"well"over"30"countries" on"6"con-nents,"where"we"have"successfully"closed"over"$250"billion"of"transac-ons"   For"each"of"our"clients,"we"approach"each"engagement"with"a"deep"understanding"of"the"local" context,"but"we"also"think"globally"about"possibili-es"and"opportuni-es"   With"a"successful"track"record"advising"on"cross=border"transac-ons,"we"can"provide"our" clients"with"the"benefit"of"our"experience,"our"contacts"and"our"cultural"sensi-vity"across" many"jurisdic-ons" CREATIVE,$ INNOVATIVE$ SOLUTIONS$ GLOBAL$ EXPERTISE$   The"DelMorgan"team"has"developed"a"rigorous"approach"to"financial"analysis"over"decades"of" experience"as"senior"professionals"at"some"of"the"world’s"premier"investment"banks"and" financial"services"firms"   DelMorgan"focuses"intensely"on"each"client"assignment,"conduc-ng"in=depth"qualita-ve"and" quan-ta-ve"analyses"and"producing"world=class"work"product"   Our"professionals"can"get"up"to"speed"quickly"on"any"assignment,"and"we"have"a"great"facility" and"comfort"level"with"even"the"most"complex"situa-ons" RIGOROUS$ ANALYSIS$
  30. 30. 7" DelMorgan’s$Dis:nguishing$Core$Business$Principles$   We"hire"only"seasoned"professionals"with"the"proven"ability"to"interact"with"the"business" leaders"of"the"world"–"as"ins-tu-ons"and"as"individuals"   The"DelMorgan"team"includes"professionals"with"substan-al"experience"opera-ng"a"company" as"well"as"advisory"exper-se"   Our"depth"of"transac-onal"experience"across"all"transac-on"types"and"industry"sectors"means" that"we"bring"“real"world”"exper-se"to"bear"on"all"facets"of"a"transac-on:""   Marke-ng"   Nego-a-on"and"complicated"interpersonal"dynamics"   Financial"and"strategic"analysis." APPLIED$ BUSINESS$ ACUMEN$   We"are"dis-nc-ve"in"that"we"use"a"“reverse"pyramid”"structure"–"we"have"more"senior" professionals"than"junior"professionals"   Our"profitability"is"based"on"the"dedica-on"of"our"Managing"Directors"to"remaining"“hands= on”"throughout"the"course"of"an"engagement"   We"require"that"our"junior"staff"have"had"substan-al"exper-se"in"transac-onal"advisory"work" at"a"leading"financial"ins-tu-on"prior"to"joining"DelMorgan"–"however,"we"never"sacrifice"our" clients’"interests"to"train"our"junior"staff"or"increase"produc-vity"   Our"Managing"Directors"are"here"because"they"want"to"be"and"because"they"like"what"they" do,"and"our"clients"can"be"assured"that"they"will"have"uninterrupted"senior=level"aOen-on" throughout"the"course"of"our"rela-onship." SENIOR=LEVEL$ ATTENTION$
  31. 31. 8" DelMorgan’s$Dis:nguishing$Core$Business$Principles$   DelMorgan"is"first"and"foremost"a"client=service"ins-tu-on"–"we"put"our"clients’"interests"first"   We"strive"to"be"a"“service"leader”"and"to"provide"complete"responsiveness"and"24/7" availability"to"our"clients.""   We"avoid"any"ac-vi-es"that"would"put"us"in"conflict"with"our"clients"or"distract"us"from"our" core"focus"–"we"are"purely"advisory,"with"no"research,"trading"or"brokerage"opera-ons"   Importantly,"we"structure"our"compensa-on"to"align"our"interests"with"our"clients’"objec-ves" –"over"the"long"term"(we"can"afford"to"be"pa-ent"and"not"transac-on=oriented)""   We"understand"and"pursue"our"clients’"interests"–"and"make"them"our"own"–"staying"focused" on"providing"the"right"advice"for"every"situa-on."   In"a"financial"services"sector"with"many"driven"and"capable"companies,"DelMorgan"aims"to"go" the"“extra"mile”"in"our"responsiveness,"energy"level"and"drive"to"win"   We"have"a"high"degree"of"pride"in"ourselves,"in"our"capabili-es"and"in"our"clients"   We"set"the"highest"professional"standards"for"our"team,"and"we"are"relentless"on"behalf"of" our"clients"   We"combine"our"personal"drive"and"our"passion"for"excellence"with"our"clients’"ambi-ons," and"we"work"-relessly"to"achieve"their"objec-ves."   "In"this"way,"we"create"a"highly"intense"but"highly"enjoyable"atmosphere"in"which"our" engagements"are"rewarding"and"fun"both"for"our"professionals"and"for"our"clients." DEDICATION$TO$ OUR$CLIENTS$ PASSION$FOR$ SUCCESS$
  32. 32. 9" Our$Mission$ Our"mission"is"to"assist"our"clients"pursuing"their"objec-ves"on"a"highly"professional"and"efficient"manner.""We" will"advise"management"and"the"board"of"directors"in"their"evalua-on"while"iden-fying"the"best"alterna-ves" available.""Over"the"long"term,"we"wish"to"have"a"long=standing"rela-onship"with"our"clients." ►  Extensive"deal"structuring"and"execu-on" exper-se"and"dedica-on"to"the"mission" ►  A"custom=tailored"financial"solu-on"to"raise"the" necessary"capital"in"a"-mely"fashion" ►  Seasoned"deal"judgment,"based"on"in=depth" knowledge"of"M&A"transac-ons"and"current" investment"environment" ►  Ability"to"crah"an"aOrac-ve"story"(with" aOrac-ve"IRRs"and"reassurance"on"downside" risk),"and"marry"it"to"a"saleable"structure"and"an" effec-ve,"disciplined,"and"well=managed" process" ►  Dedicated"senior"management"team"with" extensive"Wall"Street"investment"banking"and" M&A"exper-se" ►  More"senior=level"-me"commitment,"aOen-on" and"advice"from"the"deal"team"than"any"other" investment"bank" ►  Experience,"knowledge"and"exper-se"beyond" investment"banking"as"board"members,"senior" execu-ves,"private"equity"and"hedge"fund" managers"" ►  Unparalleled"advice"to"management"and"the" board"of"directors"to"address"difficult"and" challenging"issues"for"them"to"make"the"best" decisions"on"behalf"of"the"shareholders" ►  Speed"of"execu-on"–"we"must"complete"our" mission"well"ahead"of"the"deadline" ►  We"cannot"afford"to"delay"the"process" What$We$Offer$Our$Clients$ What$That$Means$to$Our$Clients$
  33. 33. Purpose and Definition of Advisory Board Corporate Advisory Boards Role as senior advisory counsel on important or technical issues •  Merger and acquisition •  Financing and capital raise •  Operations •  Marketing and promotion •  Strategic thinking •  Technology
  34. 34. Purpose and Definition of Advisory Board Corporate Advisory Boards Process and steps in formation of advisory board •  Define advisory member skills desired •  Determine expectations (is name on website sufficient?) •  Create your pitch and compensation package •  Brainstorm the target list of advisors •  Seek out the targeted advisors and recruit them •  Celebrate, incorporate and communicate

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