How to Present your Company to Acquire an Outside Investor, Özyeğin University – Istanbul, 19 July 2012 ...
Why do you want an outside investor?BEN/NY/19.07.2012/E-Tohum-v.3 2
Why does an outside investor want to invest?BEN/NY/19.07.2012/E-Tohum-v.3 3
Investors prefer high returns and low risk ? $ ? Returns need to be in balance with R...
Which company would you invest in?TURNOVER Year -3 Year -2 Year -1 Year 0 Year 1 Year 2 Year 3 CAGR (-3,0) CA...
Is your Company PSS? Profitable & ...
Profit & Loss: Past,Present and FutureFinancial € ‘000 2010 2011 2012 2012 2013 2014 2015Summ...
‘Profit is an Opinion, Cash is King’ 8
CF-Statement, BS equally importantFinancial € ‘000 2010 2011 2012 2012 2013 2014 2015Summary ...
Company Company • Business lines, position in the market • Value proposition and business model (how does the company (...
Management and Shareholder structure Management and Shareholders Structure • Ownership structure and legal struct...
Let’s talk about RiskCountry RiskIndustry RiskCompany Risk- Business risk How can each risk- Financial ris...
Story and Use ofof FundsStory and Use Funds• Business plan (!)• Explanation of growthdrivers in topline/bottom line ...
ReturnAssumptionsReturn Assumptions• Key assumptions for exit• Different scenarios based on different growth rates and EBI...
Required Returns - Professional Investors ...
Relevant Topics other than Valuation Grow faster, accomplish critical mass first Business specific added value of the ...
THANK YOU 17
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Natalie Yukselen Presentation

Published on: Mar 3, 2016
Published in: Business      Economy & Finance      
Source: www.slideshare.net


Transcripts - Natalie Yukselen Presentation

  • 1. How to Present your Company to Acquire an Outside Investor, Özyeğin University – Istanbul, 19 July 2012 Investment Management 1
  • 2. Why do you want an outside investor?BEN/NY/19.07.2012/E-Tohum-v.3 2
  • 3. Why does an outside investor want to invest?BEN/NY/19.07.2012/E-Tohum-v.3 3
  • 4. Investors prefer high returns and low risk ? $ ? Returns need to be in balance with RiskBEN/NY/19.07.2012/E-Tohum-v.3 4
  • 5. Which company would you invest in?TURNOVER Year -3 Year -2 Year -1 Year 0 Year 1 Year 2 Year 3 CAGR (-3,0) CAGR (0,3)Company 1 100 200 300 400 450 500 550 59% 11%Company 2 10 50 75 200 500 1000 2500 171% 132%Company 3 0 100000 105000 110000 N/A +++%Company 4 200 500 800 10000 9000 12000 12500 268% 8%NET CASH FLOW Year -3 Year -2 Year -1 Year 0 Year 1 Year 2 Year 3 CAGR (-3,0) CAGR (0,3)Company 1 -20 -50 0 100 20 50 100 -271% 0%Company 2 0 0 20 100 130 150 150 N/A 14%Company 3 -50 -50 -100 -150 N/A 44%Company 4 10 20 25 40 60 100 125 59% 46% BEN/NY/19.07.2012/E-Tohum-v.3 5
  • 6. Is your Company PSS? Profitable & Scalable & SellableBEN/NY/19.07.2012/E-Tohum-v.3 6
  • 7. Profit & Loss: Past,Present and FutureFinancial € ‘000 2010 2011 2012 2012 2013 2014 2015Summary YTD (exp) (est.) (est.) (est.) Net Revenue % growth Gross Margin Profit % growth & Loss EBITDA % growth Net Income % growthBusinessSpecificBEN/NY/19.07.2012/E-Tohum-v.3 7
  • 8. ‘Profit is an Opinion, Cash is King’ 8
  • 9. CF-Statement, BS equally importantFinancial € ‘000 2010 2011 2012 2012 2013 2014 2015Summary YTD (exp) (est.) (est.) (est.) Work Cap Change (+/-) Tax Cash CAPEX Flow Mainten. CAPEX Investm. Interest Total Assets - FixedBalance - Cash Sheet Equity Liabilities - Bank DebtBEN/NY/19.07.2012/E-Tohum-v.3 9
  • 10. Company Company • Business lines, position in the market • Value proposition and business model (how does the company (plan to) earn its money?) • Key success factors • Accomplishments (e.g. brand awareness, page ranking, patents) Industry Industry • Industry size, growth, trends, segmentation • Description of main competitors, marketshares • Threat of substitutes, barriers to entry, easiness to copy • International perspective • Was it proven elsewhere?BEN/NY/19.07.2012/E-Tohum-v.3 10
  • 11. Management and Shareholder structure Management and Shareholders Structure • Ownership structure and legal structure • Concise biography on each individual of the entrepreneur team • Management Team and indication of their compensation • Involvement in other businesses • Potential conflicts of interest Investment Thesis Investment Thesis • Reasons to invest in order of importance; each reason further clarified • What are the drivers of value growth, the explanations Risks Risks • All risks that can be identified, each risk further expanded on, • Risk mitigators to be indicated and clarifiedBEN/NY/19.07.2012/E-Tohum-v.3 11
  • 12. Let’s talk about RiskCountry RiskIndustry RiskCompany Risk- Business risk How can each risk- Financial risk be mitigated?- Legal riskThe EntrepreneursHas it been done before?BEN/NY/19.07.2012/E-Tohum-v.3 12
  • 13. Story and Use ofof FundsStory and Use Funds• Business plan (!)• Explanation of growthdrivers in topline/bottom line and EBITDA• In case of capital injection use of funds description• What will be done once invested, what actions to be taken• What is the story aimed at for successul exit after what time spanInvestmentValue and Transaction Transaction• Description of proposed transaction• Proposed valuation backed by a DCF-model• Multiples research (transaction and publicly listed multiples)BEN/NY/19.07.2012/E-Tohum-v.3 13
  • 14. ReturnAssumptionsReturn Assumptions• Key assumptions for exit• Different scenarios based on different growth rates and EBITDA targets – Negative scenario – Realistic scenario – Positive scenario – Sensitivity Analysis• Potential trade buyers to which the financial investor would exit• Down side protectionBEN/NY/19.07.2012/E-Tohum-v.3 14
  • 15. Required Returns - Professional Investors Ingoing Estimated Type of Annual Minimum Financing Returns - July 2012 Bank Debt €,$ (solvable company with equity) 7-8% Bank Debt TL (solvable company with equity) 16-18% Infrastructure Investment Fund €,$ 15-20% Mezannine (Convertible Loan) €, $ 20% Private Equity (company w/ track record) €,$ 25-35% Venture Capital €,$ 50% If you can do it alone, why take an investor in?Note: returns are indicatiive, averages, per investor these numbers may be differentBEN/NY/19.07.2012/E-Tohum-v.3 15
  • 16. Relevant Topics other than Valuation Grow faster, accomplish critical mass first Business specific added value of the Investors - Other invested companies - Expertise - Experience - Network Access to further forms of financing -Financial investor brings standing for bank credit Chemistry / Trust with the investment team Corporate governance improvement Defensive moveBEN/NY/19.07.2012/E-Tohum-v.3 16
  • 17. THANK YOU 17

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