Transcript Pitchbook US template

September 2010
S T R I C T LY
P R I VAT E
AN D
C O N FI D EN TI AL
Private EquIty
Contact:
Ryan J. Shih (施君徽)
Partner
One Equity Partners
20F Chater House
8 Connaught Road Central
Hong Kong
Private Equity Deals
 What is a private equity deal?
 Anatomy of a deal
 Sourcing
 Relationship building
 Due diligence
 Negotiations
 Closing
 Now the real fun begins…managing portfolio companies
 Exit
Sourcing
Phone Call or 12-months
Portfolio Management/Exit
12-months to X-years
DD, Negotiations, Closing
3 to 6-months
OEP
1
Private Equity Deals
 Sourcing and Relationship building
Sourcing
Phone Call or 12-months
 Active
 Ideas and cold calls
o Macro trends, micro execution
o Takes longer, balance urgency to deploy capital and management fees
o Good ideas, bad ideas, stolen ideas
 Reactive
 Sit in your office and wait
 Intermediaries and the roles of sellside, deal brokers, and others, plus what they charge…
 Benefits: quicker and pre-packaged (scrubbed, presentable), and expanded network
 Shopped around and paying full value in auctions
 Relationship building
 Not all about money…
OEP
1
Private Equity Deals
 Doing the deal

DD

Negotiations

Closing
DD, Negotiations, Closing
3 to 6-months
 DD – business, financial, legal
 Use of advisors and fees
 Negotiations
 Value add and leverage
 War of attrition
 Closing
 Documentation, approvals, fund flows
OEP
1
Private Equity Deals
 Now the real fun begins…managing portfolio companies
 Exits
Portfolio Management/Exit
12-months to X-years
 Strategy setting
 Actually the fun part…
 Monitoring and board meetings, plus what relationship building means
 Fire-fighting
 Personnel changes, business changes, reacting to special situations
 Internal portfolio management
 Reports, reports, and more reports
 Exits
 Strategic trade sale (best of both – valuation and timeliness)
 Sponsors (also good, but less value)
 Public markets (IPO or secondary) – (can take time to fully exit)
 When all else fails…recap (leakages and more)
OEP
1