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The Lloyd Bancaire Capital Markets Executive Program.2

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					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	
  
	
  
	
  

				
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