Tal is the TMT industry leader and the Head of the Corporate Finance Advisory. Tal has over 10 years of professional experience. Prior to his current position, Tal was involved in providing various services to clients including auditing of public and private companies and reorganization services in the Financial Advisory Group. Connecting the dots between Israeli Tech companies and Investors, Strategic Partners and Potential Buyers. Tal is specialized in: * Cross boarder Merger & Acquisition process of Tech companies * Scouting services to MNC * Creating global strategic alliances for Israeli Tech Companies * Cross boarder Private Placement Tal is a Certified Public Accountant and has a BA degree in Accounting & Economics and an MBA degree in Marketing & Strategy, both from Tel-Aviv University. Add your voice to creation of Leadel FLY Conference 2016 http://goo.gl/forms/7vmpV0Kysy and stay informed about mentorship opportunities from Leadel FLY speakers! Visit www.leadel.com/materials to receive access to more valuable tips.

1. © 2015 Brightman Almagor Zohar & Co.
Giant and Midget
How Startups Partner with Big Companies
Tal Chen
Partner, Leader of the Technology, Media &
Telecommunications Industry & Head of Corporate Finance

2. © 2014 Brightman Almagor Zohar & Co.
>50 new start-ups
meeting weekly
200
start-up clients
Large database of
start-ups looking for
investments &
business partners
of
experience
developing
unique
methodologie
s to nurture
innovation,
fuel
entrepreneu
20+
years
An
international
team dedicated
to start-ups
With a focused approach to the Start Up Ecosystem

3. © 2014 Brightman Almagor Zohar & Co.
Via our 3600
program accompanying start ups,…
from the seed stage to the IPO / Exit,
Audit
Business Development
Deloitte’s Network
Professional lectures
Global Alliance
TAX
Deloitte
Services
Our fees are subsidized to meet seeded startup capabilities
Audit of the annual statutory financial statements. Audit of statutory income tax return in Israel
Providing ongoing accounting and tax advice Professional lectures on various subjects, such as: IPO redlines, M&As, Raising funds
from governmental and public entities, International taxation, transfer pricing and more
Meeting with our Global Alliance team in order to explore ways to leverage the Deloitte
platform for international business opportunities
Our client service teams will include a business development professional that will
make sure that you will maximize the business value that Deloitte can offer you and
create powerful business solutions for your organizations

4. © 2015 Brightman Almagor Zohar & Co.
Creating Long Term Value
Identify the opportunities
Assess the opportunity
Evaluate the paths
Decide and Execute

5. © 2015 Brightman Almagor Zohar & Co.
Choosing the Right Business Partner

6. © 2015 Brightman Almagor Zohar & Co.
• Research
• Sometimes Second Tier is Better
• Strive for a fast Go / No-Go
How to Choose the Right Business Partner

7. © 2015 Brightman Almagor Zohar & Co.
Inside the Big Company Mind

8. © 2015 Brightman Almagor Zohar & Co.
Inside a Big Company Mind
8
How is the
company
organized?
Structure Culture
How are
decisions made?
Process
What are the
steps to securing
a deal?

9. © 2015 Brightman Almagor Zohar & Co.
Inside a Big Company Mind
Structure
9
Where is the
opportunity?
Who evaluates
partnerships?
How flat or fat?
• One business team
versus multiple groups
• Beneficial owners /
stakeholders
One BD team versus
fragmented responsibilities
# Layers of management

10. © 2015 Brightman Almagor Zohar & Co.
Inside a Big Company Mind
Culture
10
How do they
view innovation
and risks?
What are the
office politics?
•Sponsors or
advocates
•Motivation

11. © 2015 Brightman Almagor Zohar & Co.
Inside a Big Company Mind
Process
11
Who else needs to
approve?
Is the timing right?
• Budget
• Priorities
• Resources
Can they execute?
• Constraints
• Business Cycle

12. © 2015 Brightman Almagor Zohar & Co.
How Do Big Companies View Startups?
12
Motivations
• Value Equation
• Path to M&A
• Branding
De-motivations
• Safety in Big Names
• Opportunity Size

13. © 2015 Brightman Almagor Zohar & Co.
Proof of Concept

14. © 2015 Brightman Almagor Zohar & Co.
29.9%
•Clear and achievable goals
•Related to the goals of the organ
•Resource
•Schedules
•Commitment
Proof of Concept

15. © 2015 Brightman Almagor Zohar & Co.
Signs of Engagements

16. © 2015 Brightman Almagor Zohar & Co.
29.9%
Signs of Engagements
•Written and signed (binding or non binding)
•NDA, LOI, MOU, definitive agreement
•Increasing the advocates circle
•Seniority / decision making counter party
•Urgency / Frequency of the correspondence

17. © 2015 Brightman Almagor Zohar & Co.
The Next Step

18. © 2015 Brightman Almagor Zohar & Co.
The Next Step
• Deal structure
• Free (mium)
• Licensing
• NRE – Non recurring expense
• Equity

19. © 2015 Brightman Almagor Zohar & Co.
Just say YES

20. © 2015 Brightman Almagor Zohar & Co.
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© 2015 Brightman Almagor Zohar & Co. Member of Deloitte Touche Tohmatsu Limited.