Get documents about "The Lloyd Bancaire Capital Markets Executive Program.2
Document Sample
II.
Capital
Market
Careers
TABLE
OF
CONTENTS
I.
Executive
Summary
II.
Capital
Market
Careers
III.
Capital
Markets
Overview
IV.
How
to
Break
into
the
Industry
V.
The
Lloyd
Bancaire
Executive
Program
VI.
Appendices
-‐
Benefits
to
Capital
Market
Careers
-‐
Top
Job
Industry
-‐
Dynamic
Compensation
Schemes
-‐
Key
Jobs
in
Capital
Markets
Advisory
-‐
Aspects
of
Capital
Market
Jobs
Benefits
to
Capital
Market
Careers
EXPERIENCE
=
VALUE
-‐
Compete
and
work
with
the
most
talented,
ambitious
and
competitive
individuals
-‐
Interact
daily
with
experienced
fund
managers,
portfolio
managers,
analysts
etc.
-‐
Understand
various
business
models
in
multiple
sectors
/
industries
from
CEOs,
CFOs
etc.
-‐
Understand
foreign
business
culture
to
build
global
corporate
and
investor
relationships
VALUE
CREATES
OPPORUNITY
-‐
Vastly
enhance
one’s
chances
of
obtaining
an
MBA
at
top
universities
-‐
Fast
track
oneself
into
a
role
as
CEO
or
CFO
of
a
corporate
entity
-‐
Launch
oneself
into
an
international
career
-‐
Build
important
domestic
business
relationships
-‐
Apply
knowledge
and
experience
in
investments
to
raise
funds
for:
-‐
Establishing
an
investment
fund
-‐
Starting
a
venture
business
-‐
Helping
companies
expand,
grow
and
become
regionally/globally
competitive
Top
Job
Industry
Competitive
Job
Industry
Globally…
-‐
“Bulge-‐bracket”
I-‐banks,
leading
hedge
funds,
Private
Equity
Groups
are
extremely
selective
and
competitive
-‐
Graduates
from
top
schools
(i.e.:
Harvard,MIT,
Stanford,
Berkeley,
Wharton,
Columbia
etc.)
-‐
Highest
academic
achievements
(i.e.
honors,
awards
,
dean’s
list
etc.)
-‐
Overachievers
and
leaders
(i.e.
presidents
of
business
/
finance
clubs
,
associations
etc.)
-‐
Possess
comprehensive
financial
knowledge
prior
to
graduation
to
prepare
for
interviews
-‐
Able
to
navigate
challenging
interviews
(i.e.:
How
many
ping-‐pong
balls
can
fit
into
a
Boeing
747
Jet?)
-‐
Confident,
outspoken
and
articulate;
No
indications
of
weakness
Commodity
Job
Locally…
-‐
Retail
client
focused,
lack
institutional
experience
-‐
“Stamp
factory”
job
–
expect
to
be
processing
not
creating
-‐
Propensity
to
Job-‐hop
–
little
continuity
of
experience
or
direction
-‐
Little
English
language
requirements
–
reflective
of
standards
-‐
Don’t
expect
to
provide
much
valuable
input
–
Most
retail
investors
in
VN
would
rather
trade
themselves
-‐
Most
companies
in
VN
would
rather
raise
capital
themselves
rather
than
rely
on
a
local
securities
company
-‐
Illegal
activities
the
norm
–
such
unprofessional
ethics
would
get
you
fired
in
a
global
firm
-‐
Expect
limited
global
exposure
or
internationally
transferable
experience
Dynamic
Compensation
Schemes
One
of
the
Most
Lucrative
Careers…
-‐
Highest
paid
professional
career
for
undergraduate
degrees
in
the
West
-‐
Best
way
to
get
rich
besides
being
an
illegal
con-‐artist,
inheriting
money
from
your
family,
being
a
famous
celebrity/musician/athlete
or
starting
your
own
business
-‐
Fresh
graduate
Analysts
at
global
Investment
Banks
start
at
$100K+
in
annual
comp
-‐
Managing
Directors
make
millions
of
dollars
from
annual
bonuses
Fortunately,
opportunities
in
Vietnam
do
exist…
-‐
Bonus
compensation
based
on
performance
while
salaries
highly
competitive
with
most
other
professional
industries
-‐
Given
its
low
base,
Vietnam’s
capital
markets
have
potential
for
high
growth
and
hence
higher
pay
whilst
already
offering
some
of
the
highest
compensation
packages
-‐
If
one
has
the
international
caliber
skill-‐sets,
professional
ethics
and
determined
attitude,
Investment
banks
and
funds
in
the
region
will
poach
and
handsomely
pay
talent
to
enhance
their
Vietnam
coverage
Key
Jobs
in
Capital
Markets
Advisory
Roles
Description
Skill-‐sets,
Personalities
&
Traits
Advisory
/
• Work
directly
with
companies
• Structure
transactions
• Diligent
and
focused
• Willing
to
work
long
hours
Corporate
• Originate
investments
• Business
model
oriented
• Analyze
valuations
• Opportunistic
Finance
• Focus
on
primary
markets
• Manage
relationships
with
investment
funds
• Sociable
Institutional
• Initiate
investment
ideas
and
strategies
with
• Early
birds
investors
• Sales
oriented
Sales
• Focus
on
secondary
markets
• Articulate
• Opportunistic
• Manage
principle
positions’
risk
• Create
liquidity
–
Market
makers
• Quick
thinking
• Quantitative
prowess
Trading
• Focus
on
secondary
markets
• Calm
and
decisive
• Disciplined
behavior
• Early
birds
• Focus
on
secondary
markets
• Analytical
expertise
• Recommend
investments
• Theoretical
aptitude
Research
• Create
visibility
of
companies
• Superb
verbal
dexterity
• Provide
impartial
advice
• Opinionated
• Analyze
valuations
Aspects
of
Capital
Market
Jobs
III.
Capital
Markets
Overview
TABLE
OF
CONTENTS
I.
Executive
Summary
II.
Capital
Market
Careers
III.
Capital
Markets
Overview
IV.
How
to
Break
into
the
Industry
V.
The
Lloyd
Bancaire
Executive
Program
VI.
Appendices
-‐
What
are
the
Capital
Markets?
-‐
What
is
Investment
Advisory?
-‐
Organizing
the
Clutter
in
Capital
Markets
-‐
Venture
Capital
&
Private
Equity
Investments
-‐
More
on
Venture
Capital:
Incubation
-‐
Mergers
&
Acquisitions
(M&A)
-‐
Sell-‐Side
Advisory:
Managing
the
Capital
Raising
Process
-‐
Buy-‐Side
Advisory:
Capital
Deployment
Strategy
&
Execution
-‐
Restructurings
&
Divestments:
Shedding
Fat
for
Leaner
Growth
-‐
Our
Partnership
Lasts
Throughout
the
Entire
Company
Lifecycle
What
are
the
Capital
Markets?
We
advice
on
transactions
across
nearly
all
asset
classes…
The
capital
markets…
- Facilitate
efficient
avenues
for
raising
and
deploying
capital
- Allow
investors
and
companies
to
realize
the
value
of
their
assets
- Create
mechanisms
for
transparency
in
market
price
- Offer
a
diverse
array
of
financial
structures
suitable
to
investors
and
companies
- Provide
access
to
international
financing
channels
and
investment
opportunities
What
is
Investment
Advisory?
Creating
access
to
capital
and
investment
opportunities…
-‐
Act
as
intermediaries
in
raising
and
deploying
capital
for
companies
and
investors
-‐
Enhance
companies’
credibility
to
investors
in
accessing
international
capital
markets
-‐
Market
(“Pitch”)
investment
opportunities
to
companies
and
investors
-‐
Map,
source,
and
analyze
investment
opportunities
across
all
industries
and
sectors
-‐
Structure
investment
transactions
(“deals”)
to
the
needs
of
counterparties
Organizing
the
Clutter
in
Capital
Markets…
Myriad
of
Services…
Manage,
Structure
&
Package…
D2C
=
LLOYD
BANCAIRE
IA
Venture
Capital
&
Private
Equity
Investments
From
VC
to
PE,
we
help
accelerate
the
growth
path
th
-‐
PURPOSE:
Raising
growth
capital:
-‐
At
the
earliest
stages
of
the
life-‐cycle
-‐
Forging
synergistic
relationships
between
STARTUP
-‐>
GROWTH
COMPANY
-‐>
CASH
FLOW
POSTIVE
companies
-‐
Structure
financial
investment
partnerships
to
prepare
a
company
for
IPO
exit
-‐
LLOYD
BANCAIRE
ROLE:
We
act
as
both
advisors
to
buyers
and
sellers,
management
in
our
principle
investments
and
consultants
in
post-‐deal
monitoring
services
-‐
COUNTERPARTIES:
We
advise
companies
in
raising
capital
or
advise
private
equity
investors
in
their
deployment
strategy.
-‐
PROCESS:
We
in
assist
in
designing
business
plans,
writing
information
memorandums,
building
financial
models
and
drafting
term
sheets.
More
on
Venture
Capital:
Incubation
Leveraging
Vietnam’s
Entrepreneurial
Spirit
Aiming
to
be
the
leading
business
partner
-‐
PURPOSE:
Create
and
start
new
ventures
-‐
LB
ROLE:
Apply
creative
intelligence,
vast
network
and
market
knowledge
to
starting,
funding
and
managing
new
ventures
□
COUNTERPARTIES:
Foreign
/
domestic
investment
funds,
domestic
/
foreign
companies,
local
/
expat
professional
experts
/
management
□
PROCESS:
Develop
the
business
plan,
build
financial
forecasts,
research
the
target
market,
hire
management
team,
establish
local
and
foreign
partnerships,
obtain
licensing,
connect
customers
and
raise
venture
capital.
Mergers
&
Acquisitions
(M&A)
□
PURPOSE:
Assist
global
/
domestic
companies
structure
partnerships
via:
•
Direct
purchase
of
ownership
Issuance
of
new
shares
for
growth
•
capital
Setup
of
new
Joint
Ventures
•
□
LB
ROLE:
We
act
as
advisors
to
either
the
buyer
seeking
acquisition
targets
or
sellers
requiring
strategic
partners
□
COUNTERPARTIES:
Transactions
involve
global
and
/
or
domestic
companies
acting
as
either
buyers
/
sellers
□
PROCESS:
The
scope
of
work
requires
extensive
preparation
of
investor
documentation,
regulatory
filings,
financial
due
diligence,
marketing
materials
and
road-‐shows
spanning
many
months
and
even
beyond
a
year
To
partake
in
Vietnam’s
across-‐the-‐board
growth
cur
MERGERS
are
the
combination
of
two
companies
into
one
larger
entity
Sell-‐Side
Advisory:
Managing
the
Capital
Raising
Process
Buy-‐Side
Advisory:
Capital
Deployment
Strategy
&
Execution
INDUSTRY
/
SECTOR
ANALYSIS:
• Determine
industry
/
sector
trends
•
Segment
value-‐chains
• Identify
growth
drivers
TARGET
MAPPING:
• Categorize
key
players
• Matrix
SWOT
and
comparable
metrics
• Short-‐list
preferred
targets
COMPANY
MEETINGS
/
PROFILES:
• Gather
key
operating
metrics
• Business
model
descriptions
• Trends
and
developments
INVESTMENT
DUE
DILIGENCE:
• Stress
test
forecast
assumptions
•
Comprehensive
valuation
models
•
Coordinate
legal
due
diligence
NEGOTIATIONS
&
STRUCTURING:
• Customize
deal
structure
• Buffer
hostility
through
intermediation
• Negotiate
buyer’s
terms
&
conditions
Restructurings
&
Divestments:
Shedding
Fat
for
Leaner
Growth
Sometimes
more
is
less;
Allocate
capital
where
it
grows
best
Need
capital
to
fund
growth
but
don’t
want
to
sell
equity
or
raise
debt?
Not
enough
management
resources
to
scale
higher
growth
core
business?
-‐
Restructurings
allow
companies
to
unlock
capital
trapped
in
underperforming
assets
-‐
Divestments
in
businesses
where
management
is
inexperienced
to
focus
on
core
growth
-‐
Immediate
value
creation
that
can
be
realized
by
the
capital
markets
(i.e.
stock
price)
Our
Partnership
Lasts
Through-‐out
the
Entire
Company
Lifecycle
IV.
How
to
Break
into
the
Industry?
TABLE
OF
CONTENTS
I.
Executive
Summary
II.
Capital
Market
Careers
III.
Capital
Markets
Overview
IV.
How
to
Break
into
the
Industry
V.
The
Lloyd
Bancaire
Executive
Program
VI.
Appendices
-‐
Preparation
is
Vital
-‐
Sample
Résumé
Preparation
is
Vital
ESTABLISH
FUNDAMENTAL
KNOWLEDGE
q
Extensive
research
into
careers
in
investment
banking
–
Read
vault
career
guides,
wet
feet
q
Be
up
to
date
on
the
local
and
global
news
(i.e.
wallstreet
journal,
barons,
bloomberg,
vietstock
etc.)
q
Read
research
reports
and
macro
analysis
(i.e.
Investors
Insight,
Morningstar,
PIMCO
etc.)
q
Understand
technical
financial
theory
(i.e.
Investopedia,
“the
intelligent
investor”,
CFA
etc.)
One
does
not
necessarily
have
to
have
a
finance
degree;
Applicable
finance
is
self-‐taught
or
trained
on
the-‐job;
in
fact,
many
finance
professionals
have
non-‐finance
backgrounds
(i.e.
engineering,
pharmacy)
ACCUMULATE
INDUSTRY
RELEVANT
EXPERIENCE
&
SKILLS
q
Build
technical
skills
on
valuation
modeling
in
excel
(i.e.:
Training
The
Street,
Wall
Street
Prep
etc.)
q
INTERNSHIPS!!!
Gain
experience
with
asset
managers,
investment
banks,
securities
companies
q
Network
by
attending
industry
conferences,
seminars;
utilize
linked-‐in,
doostang,
CFA
societies
q
Invest
yourself
–
Putting
a
little
money
to
work
is
a
fast
way
to
learning
hard-‐earned
lessons
Ultimately,
be
prepared
to
begin
high-‐level
value-‐added
work
upon
hire;
Distinguishing
oneself
by
having
the
experience
and
skills
at
the
beginning
is
a
sure
way
to
improving
your
chances
of
being
hired.
Having
a
polished
resume
is
key
to
being
an
outlier
in
the
application
process.
Sample
Résumé
John Smith <> 9999 Cherry Boulevard <> Cambridge, MA XXXXX <> USA<> (001) (555) 555-5555 <> John.Smith52@gmail.com EDUCATION: Top
University – B.A. Economics [Cambridge, MA 9/2005 -6/2009]
Cumulative GPA: 3.9 Major GPA: 4.0
Top University of Singapore, Education Abroad Program [Singapore 8/2006 -12/2006] CFA Level I Candidate PROFESSIONAL EXPERIENCE: Analyst (Intern), ABC
Private Equity Group, LLC [Cambridge, MA 02/2008 – 6/2009] ABC Private Equity Group, LLC located in Cambridge, CT, is a global private equity fund of funds advisory
group servicing institutional investors in private equity
□ Analyze private equity fund manager performance using proprietary analysis model.
□ Apply thematic investment assumptions to calibrate outperforming private equity funds and allocation strategies for superior risk-adjusted returns.
□ Update and maintain database of proprietary private equity data and information to conduct trend analysis.
Summer Analyst (Intern), 123 Partners – Mergers & Acquisitions [Manhattan, NY 7/2008 -9/2008] 123 is a global Investment Bank specializing in M&A
Advisory, underwriting, research and institutional brokerage services.
Worked intimately with Managing Directors to source two potential deals currently in the process of entering the firm’s deal pipeline.
□ Met with executive management (i.e.: CEO, CFO, COO etc.) at over 30 companies to understand key operations for potential growth and upcoming projects
□ Supported analysts on building pitch books and conducting research.
□ Wrote an internal thematic project on M&A investment strategies for the Managing Directors.
M&A Research Analyst (Intern), Acme Partners, Inc. [Boston, MA 6/2007 -6/2008] Acme Partners is a specialized mergers and acquisitions firm serving the
middle market. GPI leads in executing strategic acquisitions.
□ Researched industries/companies for growth opportunities in: Aviation, Waste, Food and Beverage, Manufacturing, Contract Packaging, Logistics, Pharmaceuticals
□ Called company CEO’s, CFO’s as well as utilized internet resources and online databases to determine scale, scope and details of operations
□ Updated and added information of over 1,000 internal company reports to the proprietary database to source deals for firm principles.
INTERESTS: Chancellor and Member, the Professional Fraternity of Alpha Alpha Alpha [Cambridge, MA 6/2007 -9/2008] Alpha Alpha Alpha is a professional fraternity
organized to foster the study of business in universities. The fraternity has over 300 chapters and over 500,000 members
□ Arbitrated risk management and interpreted bylaw compliance measures to ensure best practices and operations.
□ Organized, directed and facilitated efficient general body meetings and procedures while cutting time by over 50%.
□ Restructured corporate configuration to formulate business strategy and improve effective operations in corporate sponsorship.
Portfolio Manager and Member, Top University Student Foundation Investment Committee [Cambridge, MA 4/2006 – 6/2009] The Student Foundation
Investments Committee is responsible for the management of the Student Foundation's $10m endowment.
□ Managed weekly equity market discussions and decisions in managing entire endowment portfolio.
□ Built comps, DCF and LBO valuation models on companies considered for investments.
□ Maintained quantitative asset allocation and risk management model for endowment portfolio.
The
Lloyd
Bancaire
Executive
Internship
TABLE
OF
CONTENTS
I.
Executive
Summary
II.
Capital
Market
Careers
III.
Capital
Markets
Overview
IV.
How
to
Break
into
the
Industry
V.
The
Lloyd
Bancaire
Executive
Program
VI.
Appendices
-‐
Introducing
the
Internship
-‐
Internship
Purpose
-‐
Internship
Description
-‐
In-‐Class
Training
Schedule
-‐
On-‐the-‐Job
Soft-‐Stills
Training
-‐
Work
Environment
at
D2C
-‐
Candidate
Requirements
-‐
Not
an
Office
Assistant
Position
-‐
Application
Procedure
Introducing
the
Internship
□
D2C
seeks
dynamic
and
energetic
team
members
to
help
us
grow
whilst
-‐
Lloyd
Bancaire
seeks
dynamic
and
energetic
team
members
to
help
us
grow
whilst
providing
impeccable
service
to
our
clients.
-‐
Our
entrepreneurial
environment
is
founded
on
our
groups’
enthusiasm
and
diversity
to
synergize
and
leverage
all
participants’
contributing
strengths.
-‐
We
seek
ambitious
individuals
driven
to
outperform
and
execute
across
all
areas
of
businesses
to
provide
the
insightful
strategic
advice
for
our
clients’
capital
allocation
decisions.
-‐
These
are
high
level
capital
markets
programs
involving
candidates
in
the
entire
transaction
process:
analysis,
target
selection,
valuation,
structuring
and
post-‐deal
monitoring.
Internship
Purpose
- The
internship
is
meant
to
provide
interns
with
a
foundation
of
applied
experience
in
capital
markets
advisory:
M&A,
private
equity,
venture
capital
etc.
-‐
The
pragmatic
approach
of
the
internship
is
meant
to
provide
interns
with
advanced
skills
transferrable
to
any
firm,
whether
financially
focused
or
not.
-‐
Exemplary
performance
may
lead
to
full-‐time
job
placements
with
Lloyd
Bancaire
as
we
seek
the
most
talented
individuals
to
join
our
team.
Internship
Description
RESEARCH
FOUNDATION
-‐
Analyze
Industry
/
Sector
trends,
growth
drivers
and
investment
opportunities
-‐
Map
major
players,
matrix
competitive
quantitative
and
qualitative
metrics
-‐
Prepare
and
attend
management
meetings,
agendas
and
questions
-‐
Evaluate
M&A
targets
and
market
entry
considerations
for
new
ventures
-‐
Conduct
macroeconomic
updates
for
analytics
and
presentation
purposes
TRANSACTION
FOCUS
-‐
Assist
team
with
drafting
pitch
book
presentations
-‐
Aid
in
writing
industry
due
diligence
reports
-‐
Build
public
/
acquisition
valuation
comps
models
in
excel
-‐
Build
forecast
assumptions
and
models
for
new
ventures
and
start-‐up
companies
-‐
Support
D2C
team
in
any
and
all
aspects
of
the
transaction
process
from
pitch
to
close
In-‐Class
Training
Schedule:
SUBJECT
SESSION
APPLIED
RESEARCH
INTRO
TO
VIETNAM
MACRO
BUILDING
PITCH
BOOKS
INTRO
TO
INCOME
STATEMENT
INTRO
TO
BALANCE
SHEET
INTRO
TO
CASHFLOW
STATEMENT
FINANCIAL
STATEMENT
ANALYSIS
INTRO
TO
EXCEL
PUBLIC
COMPS
ANALYSIS
ACQUISTION
COMPS
ANALYSIS
M&A
TRAINING:
BUSINESS
OF
M&A
M&A
TRAINING:
SELL-‐SIDE
MACROECONOMIC
INDICATORS
EMERGING
MARKET
MACROECONOMIC
ANALYSIS
-‐38.6%
YoY
-‐62.8%
YoY
-‐50.7
YoY
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
China
SE
Asia
Vietnam
USD
millions
Transaction
Value
(1H
2009)
Transaction
Value
(1H
200
On-‐the-‐Job
Soft
Skills
Training
D2C
=
LLOYD
BANCAIRE
IA
Work
Environment
at
Lloyd
Bancaire
Candidate
Requirements
- Resourcefulness;
ability
to
find
information;
keen
intellectual
curiosity
- Proficiency
in
Microsoft
Applications
(i.e.
Word,
Excel,
PowerPoint)
- Basic
understanding
of
Financial
Statements
- Ability
to
read,
write
and
speak
professional
business
English
- Creative,
innovative
and
imaginative
thought
process
- Diligent
work
schedule
- Accountability
&
Dependability
- Excellent
organizational
capacity
- Professional
/
urbane
manner
- Strategic,
structured
mindset
Not
an
Office
Assistant
Position…
-‐
Not
about
getting
coffee
-‐
Not
about
filing
papers
-‐
Not
about
ordering
supplies
-‐
Not
about
admin
work
We
are
looking
for
value-‐added
contributing
team
members
Application
Procedure
-‐ Please
send
(1)
resume
/
CV,
(2)
cover
letter
and
(3)
indication
of
academic
achievements
and
courses
obtained.
-‐ Direct
all
applications
by
email
to
Nikki
Singh,
Vice
President,
at
nikki@lloydbancaire.co.uk
-‐ -‐
Please
kindly
cite:
“CAPITAL
MARKETS
INTERNSHIP”
in
subject
line
VI.
Appendices
With
more
than
forty
years
of
combined,
international,
capital
market
experience,
Lloyd
Bancaire
is
defined
by
Capital:
- Creation
- Deployment
- Structuring
The
Scope
of
Our
Partnership
-‐
Mergers
&
Acquisitions
-‐
VC
and
PE
Investment
-‐
Business
Plan
Preparation
-‐
Capital
Structuring
-‐
Deal
Negotiation
-‐
Due
Diligence
-‐
Industry
Mapping
&
Competitive
Analysis
-‐
Post
Deal
Monitoring
-‐
Strategic
Advisory
CAP
MKT
UPDATE:
What
Has
Changed
The
Bad
News
- VN
remains
on
periphery
of
regional
investment
universe
- Risk
appetite
of
overseas
funds
for
high
risk,
emerging
assets
is
still
depressed
- The
quality
of
onshore
capital
market
advisors
lags
far
behind
that
of
lawyers
and
accountants
The
Good
News
- Strategic
investor
interest
is
rising
- Specialist
financial
investors
get
more
access
opportunity
- Funding
costs
are
low
- Less
noise
=
more
deals
can
be
done
but
…
- Preparation
and
structuring
is
critical
Dependent
on
Leverage
to
Grow
SOURCE:
Reuters,
Bloomberg,
GSO,
D2C
Research
Poor
Access
+
Uncertain
Legal
Framework
Vietnam
M&A
Slowdown…
Units
in
USD
1H
2009
%
Change
1H
2008
M&A
bn
M&A
World
914.04
1,573.33
-‐41.9%
USA
289.36
569.07
-‐49.2%
China
38.29
62.33
38.6%
SE
Asia
18.56
49.94
-‐62.8%
Vietnam
0.23
0.471
-‐50.7%
IPO
Trade
Sale
Secondary
Sal
MBO
Refinancing
Other
SE
Asia
18.56
49.94
Vietnam
-‐38.6%
YoY
0.23
0.471
-‐22.5%
YoY
-‐61.5%
YoY
-‐62.8%
YoY
-‐50.7%%
-‐76.3%
YoY
YoY
-‐38.6%
YoY
-‐62.8%
YoY
-‐50.7
YoY
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
China
SE
Asia
Vietnam
USD
millions
Transaction
Value
(1H
2009)
Transaction
Value
(1H
200
Rational
Behaviour,
Finally
Investors
into
VN
are
more
cautious,
and
getting
much
better
prepared,
than
at
anytime
in
the
past
.
-‐
Competitive
and
industry
analysis
-‐
Substantially
more
comprehensive
terms,
reps
and
warranties
-‐
Detailed
due
diligence
-‐
Post
Deal
monitoring
This
requires
that
sellers/founders/shareholders
step
up
to
the
challenge
and
meet
these
needs
if
they
want
the
capital.
Improving
Probability
of
Completion
PP
Preparation
is
Key
Seek
Professional
Help
□
Detailed
Business
Plan
□
Improve
credibility
•
Growth
strategy
□
Expedite
investment
process
•
Use
of
proceeds
□
Magnify
marketing
coverage
•
Clear
exit
options
□
Outsource
non-‐core
competencies
□
inancial
Forecast
Model
&
V
•
DFe-‐risked
model
assumptions
aluation
□
Enhance
position
in
negotiations
□
Expand
financing
options
•
Return
profile
sensitivities
□
Receive
expert
coaching
□
Structure
•
Equity,
Debt,
Hybrid
□
Obtain
protection
Transparency
Flexible
Pricing
-‐
Convey
rationality
-‐
Expect
post-‐deal
monitoring
by
-‐
Understand
/
Satisfy
your
partner
Partner
or
third-‐party
contractors
-‐
Bridge
the
gap
-‐
Solidify
trustworthy
relationship
-‐
Opportunity
cost
/
Time
value
-‐
Instill
culture
of
Corporate
Governance
-‐
Loosen
terms
&
conditions
-‐
Leverage
network
synergies
-‐
Engineer
alternative
financing
-‐
Minimize
misunderstandings
What
Investors
Look
for
in
Management
-‐
Vision
Does
the
entrepreneur
see
the
long-‐term
picture
and
all
the
steps
need
to
get
there?
-‐
Scale
Can
the
entrepreneur
attract
dedicated
talent?
Willing
to
share
rewards
of
success?
-‐
Innovation
Does
the
entrepreneur
understand
the
future
of
his
industry?
Leader
or
follower?
-‐
Courage
Understanding
failure
is
part
of
the
process
-‐
Persistence
Able
to
execute
framework
to
success
despite
obstacles
along
the
way
-‐
Principles
Does
the
entrepreneur
maintain
a
credible
relationship
with
customers
and
suppliers?
-‐
Succession
Is
the
entrepreneur
willing
to
groom
his/her
successor
for
the
sake
of
the
company?
Most
Common
Deal
Tripwires
Deals
tend
to
flounder
on
a
regular
series
of
factors,
many
of
which
may
be
international
practice
-‐
but
in
VN
it
is
all
innovation
…
-‐
Emotional
Seller
Premium
-‐
Contingent
Risks
–
especially
from
earlier
raise
-‐
Validity
of
Documents
–
are
licenses
even
real
?
-‐
Failure
to
Launch
–
understand
the
need
-‐
Veto
Rights
–
some
things
require
permission
-‐
Options
–
to
put
or
call
Avoid/fix
these
and
your
chances
just
improved
sharply
Case
Study
1:
Proactive
Preparation
Easing
Investor
pain
Strategic
sales
still
attractive
Background
IPO
CONTEXT:
Trade
Sale
Secondary
CONTEXT:
Sal
MBO
Strategic
Investors
in
Education,
Media,
Refinancing
Other
Alternative
Energy
and
Construction
Materials,
sought
/
seeking
potential
JV
and
/
or
M&A
targets
in
Vietnam.
PREPARATION:
-‐
Macro
Overview
-‐
Industry
Analysis
Key
Takeaway
-‐
Sub-‐sector
analysis
-‐
Competitive
Analysis
□
Lack
of
information
hindering
deals
-‐
Target
DD
-‐
Lack
of
information
hindering
deals
requiring
strategic
investors
to
pay
for
STRUCTURE:
professional
insight
and
intelligence.
-‐
Potential
JVs
-‐
M&A
-‐
Companies
providing
better
cooperation
EXECUTION:
calm
investor
concerns
-‐
Industry
/
Sector
mapping,
interviews
SOURCE:
Grant
Thornton
Private
Equity
Survey
2009,
LB
Research
-‐
Potential
JV
Partner
/
Target
Negotiations
-‐
Strategic
Investors
are
actively
preparing
for
potential
partnerships
and
so
should
interested
companies:
improve
your
ranking
on
investors’
list
of
priorities!
Contact
Information
WWW.LLOYDBANCAIRE.CO.UK
INFO@LLOYDBANCAIRE.CO.UK
