Private Equity & the Cloud:Making it Rain
Webinar Notes• Please mute your phones• Please submit all questions through chat• Questions will be addressed at the end  ...
About the Speaker• Jeremy King  – National NetSuite Practice Leader  – CFO and COO  – Corporate Development Executive  – I...
Agenda• Background• Benefits of Cloud Computing• The Case for NetSuite• Benefits to Portfolio Companies• Benefits to PEGs•...
Section 1: Background                        © 2012 Hein & Associates, LLP. All rights reserved.
About Hein & Associates•   Full service audit, tax and consulting firm•   Expertise and knowledge of a large firm•   Perso...
About the Partnership with NetSuite• Hein was NetSuite’s original Systems Integrator  Partner• Also a Solution Provider• R...
Section 2: Benefits of the Cloud                               © 2012 Hein & Associates, LLP. All rights reserved.
IT is Necessary Evil• IT is not a core competency• Most companies are not proficient in:   –   Firewalls   –   Security   ...
The Cloud Fills the Void• What is cloud computing?   – Web-based applications delivered over the internet   – Vendor handl...
On-Premise IT                Functionality & Innovation    9%                                             Resources       ...
The Cloud Model                     Functionality                     & Innovation                                        ...
Cloud Lowers Total Cost of Ownership    On-Premise Software                                                               ...
Section 3: The Case for NetSuite                              © 2011 Hein & Associates, LLP. All rights reserved.
NetSuite: World’s #1 Cloud ERP         Background                             Performance Founded 1998                    ...
North America’s Top 10 Accounting Packages80.00%70.00%             Top 10 Financial Management System60.00%               ...
The #1 Cloud ERP for Every Business #1 for    #1 for      #1 for        #1 for      #1 for                     #1 forSoftw...
Hundreds of Public Companies Run on NetSuite                                © 2012 Hein & Associates, LLP. All rights rese...
Typical Environment                      © 2012 Hein & Associates, LLP. All rights reserved.
Global Challenges Even Greater                                                  Worldwide HQGLOBAL                     AME...
One System for Running a Business                               Customers             CEO                                 ...
Multi – National / Company / CurrencyGLOBAL                              Worldwide HQREGION                AMERICAS       ...
Complete Customization• Graphical  customization• Workflow  management• Web services• Java scripting• SuiteApps           ...
Section 4: Benefit to Portfolio Companies                               © 2012 Hein & Associates, LLP. All rights reserved.
Benefits of the Suite• Customer Relationship Management (CRM)  – Enterprise level CRM with 360°    view of all data points...
Benefits of the Suite• Enterprise Resource Planning (ERP)  – Robust dashboards  – Custom KPI tracking  – Financial and non...
Benefits of the Suite• Professional Services Automation (PSA)   – Project and task management   – Project budgeting and pr...
Benefits of the Suite• eCommerce  – Website and content management  – Item management  – Shopping cart and checkout  – Car...
Other Benefits• One system = one version of the truth• Automated consolidation and reporting• Elimination of external spre...
Section 5: Benefit to PEGs                             © 2012 Hein & Associates, LLP. All rights reserved.
Manage All Internal Operations• CRM + ERP + eCommerce  – Fundraising, referral and contact database  – Marketing activitie...
One System for Entire Deal Cycle                                   Deal                                 Submitted         ...
Section 6: An Example                        © 2012 Hein & Associates, LLP. All rights reserved.
A Simple Example• Private Equity Group   – 10 portfolio companies   – Average of $50MM in revenue   – Average of 25 full u...
Estimated 5 Year Total Cost of Ownership   On-Premise Systems           Cloud-Based SystemsLicense:            $ 922k    S...
Section 7: Summary                     © 2012 Hein & Associates, LLP. All rights reserved.
Huge Advantages• Dramatically lower IT costs• Rapid deployment• Enterprise level system to meet all exit strategies  (sale...
Some Disadvantages• Not a good fit for all companies• Resistance to change• Cannot replace competitive advantage systems• ...
Takeaway• Cloud migration is driving returns in private equity  backed companies• NetSuite is the natural choice for most ...
Questions            © 2012 Hein & Associates, LLP. All rights reserved.
For more information, please contact:Jeremy KingNational NetSuite Practice Leader(303) 298-9600jking@heincpa.comheincpa.co...
Thank You            © 2012 Hein & Associates, LLP. All rights reserved.
Suite + Cloud = Efficiency and SavingsOn-Premise           HARDWARE             DESKTOP OS      SERVER OS         DATABASE...
The Reality of On-Premise IT EXPENSIVE TO MAINTAIN     VERSION LOCKED   UP TO 5X   LICENSE  DRAINS INNOVATION            F...
The Undisputed Cloud ERP Leader       NetSuite is the most       successful ERP suite       SaaS provider operating in    ...
One System for All  PEG                                            Private Equity Group  FUNDS                       Fund ...
Upcoming SlideShare
Loading in …5
×

Private Equity & the Cloud: Making it Rain

644 views

Published on

Agenda: background; benefits of cloud computing; Case for NetSuite; Benefits to portfolio companies; Benefits to PEGs; An example; Summary.

Published in: Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
644
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Private Equity & the Cloud: Making it Rain

  1. 1. Private Equity & the Cloud:Making it Rain
  2. 2. Webinar Notes• Please mute your phones• Please submit all questions through chat• Questions will be addressed at the end © 2012 Hein & Associates, LLP. All rights reserved.
  3. 3. About the Speaker• Jeremy King – National NetSuite Practice Leader – CFO and COO – Corporate Development Executive – Investment Banker © 2012 Hein & Associates, LLP. All rights reserved.
  4. 4. Agenda• Background• Benefits of Cloud Computing• The Case for NetSuite• Benefits to Portfolio Companies• Benefits to PEGs• An Example• Summary © 2012 Hein & Associates, LLP. All rights reserved.
  5. 5. Section 1: Background © 2012 Hein & Associates, LLP. All rights reserved.
  6. 6. About Hein & Associates• Full service audit, tax and consulting firm• Expertise and knowledge of a large firm• Personalized attention• Customized solutions• Top 25 firm based on number of SEC clients• Named “Best of the Best” by Inside Public Accounting in 2009, 2011 and 2012 © 2012 Hein & Associates, LLP. All rights reserved.
  7. 7. About the Partnership with NetSuite• Hein was NetSuite’s original Systems Integrator Partner• Also a Solution Provider• Recognized the cloud migration movement early and positioned the firm to capitalize by partnering with the best• Exclusive to NetSuite © 2012 Hein & Associates, LLP. All rights reserved.
  8. 8. Section 2: Benefits of the Cloud © 2012 Hein & Associates, LLP. All rights reserved.
  9. 9. IT is Necessary Evil• IT is not a core competency• Most companies are not proficient in: – Firewalls – Security – Scalability – Backup – Data Replication – Redundancy – Uptime – Maintenance – Upgrades – Deployment © 2012 Hein & Associates, LLP. All rights reserved.
  10. 10. The Cloud Fills the Void• What is cloud computing? – Web-based applications delivered over the internet – Vendor handles all of the following: • Advanced security • Automated backups • Real-time redundancy • Guaranteed uptime • Seamless maintenance and upgrades • Always on the current version • Access from any device at any time • Scalable, pay as you go model • Extendible • No hardware required © 2012 Hein & Associates, LLP. All rights reserved.
  11. 11. On-Premise IT Functionality & Innovation 9% Resources Middleware software Database software 91% Server operating system Server hardware Rebuild Integrations Resources Data Migration Rebuild Customizations Re-test Re-train 11 © NetSuite 2010
  12. 12. The Cloud Model Functionality & Innovation 100% Resources 0% No infrastructure upgrades Customizations Resources migrate automatically © NetSuite 2010 12
  13. 13. Cloud Lowers Total Cost of Ownership On-Premise Software Cloud Computing Software Licenses 68% Subscription Fee 9% T C Customization O Customization and 43%T 32% Implementation ImplementationC and TrainingO Hardware 26% Source: Yankee Group DecisionNote Technology Analysis IT Personnel 14% Maintenance 7% 77% less than Training 1% On-Premise “Customers can spend up to four times the cost of their “Cloud computing yields substantial economies of scale and skill, software license per year to own and manage their and lowers total cost of ownership (TCO).” applications.” – Gartner – The Hurwitz Group “The End of Software” “The Compelling TCO Case for Cloud Computing” © 2012 Hein & Associates, LLP. All rights reserved.
  14. 14. Section 3: The Case for NetSuite © 2011 Hein & Associates, LLP. All rights reserved.
  15. 15. NetSuite: World’s #1 Cloud ERP Background Performance Founded 1998 World’s most deployed cloud ERP Publicly traded on NYSE: “N” Used by 12,000+ organizations Offices in 10 countries Fastest growing top 10 ERP 1200+ employees Used across 100+ countries $236M+ revenue FY11 #1 Cloud ERP Suite Industry Recognition Fastest Growing Top 10 FMS Vendor Best Financial Management 3rd Year Running Best Relationship Mgt. Top 10 Cloud Companies Best Business Software to Watch Best Cloud Platform © 2012 Hein & Associates, LLP. All rights reserved.
  16. 16. North America’s Top 10 Accounting Packages80.00%70.00% Top 10 Financial Management System60.00% Market Share Growth 2008-2011 North America50.00%40.00%30.00%20.00%10.00% 0.00%-10.00%-20.00% Source: Gartner © 2012 Hein & Associates, LLP. All rights reserved.
  17. 17. The #1 Cloud ERP for Every Business #1 for #1 for #1 for #1 for #1 for #1 forSoftware WD Manufacturing Services Etail/Retail Enterprises © 2012 Hein & Associates, LLP. All rights reserved.
  18. 18. Hundreds of Public Companies Run on NetSuite © 2012 Hein & Associates, LLP. All rights reserved.
  19. 19. Typical Environment © 2012 Hein & Associates, LLP. All rights reserved.
  20. 20. Global Challenges Even Greater Worldwide HQGLOBAL AMERICAS EMEA APACREGIONCOUNTRY Canada USA Brazil France UK Germany Japan Australia China © 2012 Hein & Associates, LLP. All rights reserved.
  21. 21. One System for Running a Business Customers CEO CFO PSA SINGLE DATA ECOMMERCE SOURCE CRM+ Shipping Sales Rep/ Manager Manager FINANCIALS SupportEcommerce Manager Manager Vendors Partners © 2012 Hein & Associates, LLP. All rights reserved.
  22. 22. Multi – National / Company / CurrencyGLOBAL Worldwide HQREGION AMERICAS EMEA APACCOUNTRY © 2012 Hein & Associates, LLP. All rights reserved.
  23. 23. Complete Customization• Graphical customization• Workflow management• Web services• Java scripting• SuiteApps © 2012 Hein & Associates, LLP. All rights reserved.
  24. 24. Section 4: Benefit to Portfolio Companies © 2012 Hein & Associates, LLP. All rights reserved.
  25. 25. Benefits of the Suite• Customer Relationship Management (CRM) – Enterprise level CRM with 360° view of all data points related to customers, prospects and leads – Complete sales force automation – Tracking of opportunities to estimates to orders – Sales pipeline reporting – Support ticket and customer service issue tracking – Complete financial history – Automated marketing engine and tracking system – Anywhere, anytime access © 2012 Hein & Associates, LLP. All rights reserved.
  26. 26. Benefits of the Suite• Enterprise Resource Planning (ERP) – Robust dashboards – Custom KPI tracking – Financial and non-financial scorecards – Real-time reporting – Seamless transition from front office to back office – Inventory and warehouse management – Demand planning and available to promise – Revenue recognition, subscription management, commissions, budgeting, scenario analyses, etc. © 2012 Hein & Associates, LLP. All rights reserved.
  27. 27. Benefits of the Suite• Professional Services Automation (PSA) – Project and task management – Project budgeting and profitability reporting – Budget vs. actual – Variance analysis – Time and expense tracking – Employee utilization and realization reporting – Job costing – Resource scheduling and management – Advanced billing methods (% completion, milestone, etc.) © 2012 Hein & Associates, LLP. All rights reserved.
  28. 28. Benefits of the Suite• eCommerce – Website and content management – Item management – Shopping cart and checkout – Cart abandonment – Payment processing – Seamless transition from eCommerce system to order fulfillment processing – Self-service portals for customers, vendors and partners – Online leads flow directly into CRM © 2012 Hein & Associates, LLP. All rights reserved.
  29. 29. Other Benefits• One system = one version of the truth• Automated consolidation and reporting• Elimination of external spreadsheets• Faster closing times• Better information = better decisions = faster growth• One system increases efficiency © 2012 Hein & Associates, LLP. All rights reserved.
  30. 30. Section 5: Benefit to PEGs © 2012 Hein & Associates, LLP. All rights reserved.
  31. 31. Manage All Internal Operations• CRM + ERP + eCommerce – Fundraising, referral and contact database – Marketing activities and reporting – Internal and fund accounting system – Virtual data rooms – Real-time visibility into portfolio companies on NetSuite – Allows PEGs to act more strategically – Automated deal management system © 2012 Hein & Associates, LLP. All rights reserved.
  32. 32. One System for Entire Deal Cycle Deal Submitted Deal Sell-Side Screening Closing Process Due Due Diligence Diligence Exit Buy-Side Marketing Closing Growth and Reporting © 2012 Hein & Associates, LLP. All rights reserved.
  33. 33. Section 6: An Example © 2012 Hein & Associates, LLP. All rights reserved.
  34. 34. A Simple Example• Private Equity Group – 10 portfolio companies – Average of $50MM in revenue – Average of 25 full user licenses per company – Average of 50 other employee users per company• 2 scenarios – Scenario 1: All 11 entities running separate on-premise systems – Scenario 2: All 11 entities on one instance of NetSuite © 2012 Hein & Associates, LLP. All rights reserved.
  35. 35. Estimated 5 Year Total Cost of Ownership On-Premise Systems Cloud-Based SystemsLicense: $ 922k Subscription $2,300kImplementation Implementation& Customization: $4,409k & Customization $1,083kHardware: $2,665k Hardware: $ 0IT Personnel: $1,435k IT Personnel: $ 0Maintenance: $ 717k Maintenance: $ 0Training: $ 106k Training: $ 0TOTAL: $10.3M TOTAL: $3.4M Savings of $6.9M © 2012 Hein & Associates, LLP. All rights reserved.
  36. 36. Section 7: Summary © 2012 Hein & Associates, LLP. All rights reserved.
  37. 37. Huge Advantages• Dramatically lower IT costs• Rapid deployment• Enterprise level system to meet all exit strategies (sale or IPO)• Real-time visibility into portfolio companies• Dashboards, KPIs and scorecards• Anywhere, anytime access• Better information for strategic decision-making• Drive ROI © 2012 Hein & Associates, LLP. All rights reserved.
  38. 38. Some Disadvantages• Not a good fit for all companies• Resistance to change• Cannot replace competitive advantage systems• No process manufacturing support• No heavy manufacturing support © 2012 Hein & Associates, LLP. All rights reserved.
  39. 39. Takeaway• Cloud migration is driving returns in private equity backed companies• NetSuite is the natural choice for most industries• Last system most companies will ever need• Every PEG should have NetSuite on their short list for both themselves and their portfolio companies © 2012 Hein & Associates, LLP. All rights reserved.
  40. 40. Questions © 2012 Hein & Associates, LLP. All rights reserved.
  41. 41. For more information, please contact:Jeremy KingNational NetSuite Practice Leader(303) 298-9600jking@heincpa.comheincpa.com/netsuite
  42. 42. Thank You © 2012 Hein & Associates, LLP. All rights reserved.
  43. 43. Suite + Cloud = Efficiency and SavingsOn-Premise HARDWARE DESKTOP OS SERVER OS DATABASE APPLICATION Do It Yourself License HARDWARE License DESKTOP OS License SERVER OS License DATABASE License APPLICATION ERP Maintain License Maintain DESKTOP OS License Maintain DATABASE License Maintain Back-up CRM HARDWARE License SERVER OS License APPLICATION Patch Maintain Patch Patch Tune Upgrade eCommerceLicense Maintain License Maintain License Maintain License Back-up License ReplacePatch Replace Replace UpgradeTune Migrate Maintain Patch Maintain Patch Maintain Maintain Upgrade Back-up ReplacePatch ReplacePatch ReplacePatch UpgradeTune Migrate Upgrade Replace Replace Replace Upgrade MigrateCloud-Based HARDWARE DESKTOP OS SERVER OS DATABASE APPLICATION Suite Subscribe NetSuite © 2012 Hein & Associates, LLP. All rights reserved.
  44. 44. The Reality of On-Premise IT EXPENSIVE TO MAINTAIN VERSION LOCKED UP TO 5X LICENSE DRAINS INNOVATION FRAGMENTED
  45. 45. The Undisputed Cloud ERP Leader NetSuite is the most successful ERP suite SaaS provider operating in terms of active customers, international presence and functionality offered across the product. June 2011 © 2012 Hein & Associates, LLP. All rights reserved.
  46. 46. One System for All PEG Private Equity Group FUNDS Fund A Fund B Fund CCOMPANIESPORTFOLIO Mexico USA Brazil France UK Germany Japan Australia China © 2012 Hein & Associates, LLP. All rights reserved.

×