Business Pitch for the creation of a B2B agency that will provide intelligence on quality and demand for professional services (quality and availability of professional services to users of such services and business leads, market intelligence and brand development services to providers of such services.

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

2. 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
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3. 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
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4. 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
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5. 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
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6. 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
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7. 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
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8. 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
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9. 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
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10. 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
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11. 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
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12. 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
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13. 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
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14. 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
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15. 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
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16. 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
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17. 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
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18. Pete Chatziplis, B2B Professional Services Agency Business Pitch, New York, December 2009
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