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1、 Chicago, Illinois New Delhi, India ChangAn, China ConfidentialConfidentialMarch30,2011March30,2011BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII11TableofContentsI. I.PrivateEquityOverviewPrivateEquityOverviewII.II.PfingstenPartners,L.L.CPfingstenPartners,L.L.CIII.III.HowDoesPrivateEquityWork?Ho
2、wDoesPrivateEquityWork?IV.IV.CaseStudiesCaseStudiesV.V.PreparingforaCareerinPrivateEquityPreparingforaCareerinPrivateEquityPrivateEquityOverviewBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII33PrivateEquityOverviewPublicEquities(Stocks)ReturnExpectations:9%PublicFixedIncome(Bonds)ReturnExpectatio
3、ns:6%AlternativesReturnExpectations:15%to20%WheredoesPrivateEquityfitinanassetallocationmodel?PrivateEquityHedgeFundsDistressedDebtGovernmentCorporateDomesticInternationalEmergingMarketsCommoditiesNaturalResourcesRealEstateBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII44PrivateEquityOverviewAsse
4、tAllocationModelB$60(9%)=$60(9%)=$5.45.4AlternativesStocksBondsAssetAllocationModelA30(6%)=30(6%)=1.81.810(20%)=10(20%)=2.02.0$50(9%)=$50(9%)=$4.54.520(6%)=20(6%)=1.21.230(20%)=30(20%)=6.06.0$100$9.2$100$9.2(9.2%)(9.2%)$100$11.7$100$11.7(11.7%)(11.7%)($inmillions)($inmillions)BUILDINGBETTERBUSINESSE
5、SBUILDINGBETTERBUSINESSESII55PrivateEquityOverview PrivateEquityispartofthealternativePrivateEquityispartofthealternativeassetclassassetclass PrivateEquityfirmsmakeandmanagePrivateEquityfirmsmakeandmanageinvestmentsinprivatecompaniesinvestmentsinprivatecompaniesWhatisPrivateEquity?BUILDINGBETTERBUSI
6、NESSESBUILDINGBETTERBUSINESSESII66PrivateEquityOverview IndustrysegmentsIndustrysegments TransactionsizeTransactionsize GeographyGeography InvestmentstageInvestmentstage TypeoftransactionTypeoftransaction LevelofeconomicorlegalcontrolLevelofeconomicorlegalcontrolThePrivateEquityindustryusesawidevari
7、etyofinvestmentstrategiesPrivateEquitytransactionshavecommoninvestmentcharacteristics PrivatelynegotiatedtransactionsPrivatelynegotiatedtransactions Long-term,illiquidinvestmentsLong-term,illiquidinvestments PartnershipwithmanagementPartnershipwithmanagement Activeboard-levelcontrolorActiveboard-lev
8、elcontrolorinfluenceinfluenceBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII77LiquidateLiquidateInvestmentInvestmentManageInvestmentManageInvestmentPortfolioPortfolioGenerateInvestmentGenerateInvestmentOpportunitiesOpportunitiesandandProcessTransactionsProcessTransactionsPrivateEquityOverviewWhat
9、isthePrivateEquityfundcycle?RaiseCapitalRaiseCapital1to2years10to13yearsFundFundClosingClosingInitiateInitiateFundraisiFundraisingngFinalFinalDistributiDistributiononBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII88PrivateEquityOverviewHowbigistheU.S.PrivateEquitymarket? Over$2.0trillionincapital
10、commitmentsOver$2.0trillionincapitalcommitments Over3,000firmsintheU.S.Over3,000firmsintheU.S.WhatarethemarketsegmentsinPrivateEquity?Sources:WorldFederationofExchangesandDow Jones Private Equity Analyst Galantes Venture Capital and Private Equity Directory BuyoutsandMezzanineBuyoutsandMezzanine70%7
11、0% VentureCapitalVentureCapital30%30%HowbigistheU.S.publicequitymarket? Over$16.7trillionmarketvalueasofOver$16.7trillionmarketvalueasofNovember30,2010November30,2010 Approximately5,000listeddomesticApproximately5,000listeddomesticcompaniescompaniesBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII9
12、9Source:Dow Jones Private Equity AnalystMarketSourceShare(est.)qPublicandPrivatePensionFunds40%qFinancialInstitutions20%qFundofFunds15%qHighNetWorthIndividualsandFamilies10%qEndowmentFundsandFoundations10%qOther(Governments,Corporations,GPsetc.)5%100%PrivateEquityOverviewWhoprovidesthecapitalforPriv
13、ateEquity?BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII1010PrivateEquityOverviewWhomakesPrivateEquityInvestments? FundManagementFirmsFundManagementFirms HighNetWorthIndividualsandFamiliesHighNetWorthIndividualsandFamilies CorporationsCorporations EndowmentsEndowments FoundationsFoundations Fund
14、ofFundsManagersFundofFundsManagers GovernmentEntitiesGovernmentEntities BanksBanks Non-bankFinancialInstitutionsNon-bankFinancialInstitutions InvestmentBanksInvestmentBanks InsuranceCompaniesInsuranceCompaniesInvestmentProfessionalsat:InvestmentProfessionalsat: BUILDINGBETTERBUSINESSESBUILDINGBETTER
15、BUSINESSESII1111PrivateEquityOverviewSource:Bain&CompanyGlobalPrivateEquityReport2010WhereisPrivateEquitycapitalinvested?GlobalPrivateEquityInvestmentsGlobalPrivateEquityInvestments(1998through2009)(1998through2009)BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII1212WhataretheNetReturnexpectations
16、?PrivateEquityOverview(1)NetReturns:pre-taxcompoundedreturns(compoundedmonthly)netofallfees,expensesandcarriedinterest(2)Source:LimitedPartnersofPfingstenPartners,L.L.C.(3)Source:ICMARetirementCorporation(4)Source:IbbotsonAssociatesqqBuyoutsBuyouts15%to15%to18%18%qqMezzanineMezzanine10%10%to15%to15%
17、qqVentureCapitalVentureCapital18%18%to22%to22%qqPublicEquityPublicEquity 9%9%qqAAACorporateBondsAAACorporateBonds6%6%(1)(2)(2)(2)(2)(2)(2)(3)(3)(4)(4)BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII1313PrivateEquityOverviewCurrentIssuesandTrends CapitalcommitmentoverhangCapitalcommitmentoverhang L
18、PfocusonvaluecreationdriversLPfocusonvaluecreationdrivers PrivateequityshakeoutPrivateequityshakeout Transparency(FASB157“FairValue”)Transparency(FASB157“FairValue”) NotasprivateasitusedtobeNotasprivateasitusedtobe-PresscoverageofmegabuyoutsPresscoverageofmegabuyouts-CongressionalhearingsCongression
19、alhearings-MandatorySECregistrationin2011MandatorySECregistrationin2011 TaxissuesTaxissues-CapitalgainsCapitalgains-CarriedinterestCarriedinterest IndustrynewslettersIndustrynewsletters-Private Equity Private Equity publishedbyDowJonespublishedbyDowJones-Buyout Buyout publishedbyThomsonFinancialpubl
20、ishedbyThomsonFinancialPfingstenPartners,L.L.CBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII1515CreateafirmcombiningoperatingandfinancialexpertiseCreateafirmcombiningoperatingandfinancialexpertiseInvestinmiddlemarketmanufacturing,distributionandbusinessInvestinmiddlemarketmanufacturing,distribut
21、ionandbusinessservicecompaniesservicecompaniesBuildvaluelargelythroughoperationalimprovements,Buildvaluelargelythroughoperationalimprovements,professionalmanagementpractices,globalcapabilitiesandprofessionalmanagementpractices,globalcapabilitiesandprofitablebusinessgrowthversusfinancialengineeringpr
22、ofitablebusinessgrowthversusfinancialengineeringPfingstenPartners,L.L.C.Foundedin1989to:Chicago, IllinoisNew Delhi, IndiaChangAn, ChinaBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII1616PfingstenPartners,L.L.C.OperationalCapabilitiesOperationalCapabilitiesOperatingprofessionalsrepresentapproximat
23、elyhalfoftheOperatingprofessionalsrepresentapproximatelyhalfoftheprofessionalstaffprofessionalstaffContinuousimprovementtrainingprogramsContinuousimprovementtrainingprogramsBestpracticesforumsBestpracticesforumsOperatingExecutivesbenchOperatingExecutivesbenchGlobalCapabilitiesGlobalCapabilitiesOffic
24、esinChangAn,ChinaandNewDelhi,IndiaOfficesinChangAn,ChinaandNewDelhi,IndiaOver50directfactoryrelationshipsinAsiaOver50directfactoryrelationshipsinAsiaMarketentryservicesMarketentryservicesFunctionalsupportservicesFunctionalsupportservicesMultipleinternationaladd-onacquisitionsMultipleinternationaladd
25、-onacquisitionsConservativeCapitalStructuresConservativeCapitalStructuresMinimum50%equityinthecapitalstructureofeachplatformMinimum50%equityinthecapitalstructureofeachplatforminvestmentinvestmentBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII1717PfingstenPartners,L.L.C.ThomasS.BagleyFounder and S
26、enior Managing DirectorJohnH.UnderwoodSenior Managing DirectorAlexE.GregorVice PresidentMatthewP.SchloopVice PresidentMicahK.WickersheimAssociateAaronD.HabrigaAnalystCORPORATEFINANCEBUSINESSDEVELOPMENTADMINISTRATIONOPERATIONSPhilD.BronsteatterVice PresidentPatrickA.RileyAnalystRobertA.GladdenVice Pr
27、esidentScottA.FineganManaging DirectorJamesJ.NortonSenior Managing DirectorJonathanE.LeimanSr. Vice PresidentJeffreyA.CoteCFOAndrewW.PetriControllerLoriA.CunninghamVice PresidentDenioR.BolzanManaging DirectorJohnJ.StarcevichManaging DirectorLawrenceE.TaylorVice President HRBrendaLeeLallyVice Preside
28、nt HRDavidH.JohnstonVice PresidentJohnW.MattheiVice President HRBarbaraP.FuzesiOperational AnalystCraigJ.TompkinsVice PresidentJenniferS.ChristensenAssociateNickR.JohanssonAnalystTinaM.TromiczakVice President NormaL.CanalesOffice ManagerBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII1818Pfingsten
29、Partners,L.L.C.PortfolioCompanyFacilitiesPortfolioCompanyFacilitiesCurrent:Netherlands,Germany,England,Poland,Spain,China,CanadaCurrent:Netherlands,Germany,England,Poland,Spain,China,CanadaFormer:Taiwan,SouthAmericaFormer:Taiwan,SouthAmericaOfficesOfficesChangAn,China(22people)ChangAn,China(22people
30、)NewDelhi,India(3people)NewDelhi,India(3people)Zhuhai, ChinaNew Delhi, IndiaChangAn, ChinaGlobalFacilitiesBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII1919PfingstenPartners,L.L.C.ProductSourcingProductSourcingProductidentificationandspecificationProductidentificationandspecificationSupplieriden
31、tificationandqualificationSupplieridentificationandqualificationEngineeringsupportfornewproductdevelopmentEngineeringsupportfornewproductdevelopmentQualityassuranceandcontrolQualityassuranceandcontrolLogisticsandshippingLogisticsandshippingMarketEntryMarketEntryMarketresearchandcompetitiveanalysisMa
32、rketresearchandcompetitiveanalysisIncubationcapabilityforsales,marketing,engineering,Incubationcapabilityforsales,marketing,engineering,administration,administration,manufacturingand/ordistributionmanufacturingand/ordistributionFunctionalSupportFunctionalSupportEngineering,salesandmarketingEngineeri
33、ng,salesandmarketingAdd-onacquisitionsAdd-onacquisitionsGlobalServicesBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII2020PfingstenPartners,L.L.C.Minimum50%equityinthecapitalMinimum50%equityinthecapitalstructureofeachplatformcompanystructureofeachplatformcompanyMaximizesoperationalflexibilityMaxim
34、izesoperationalflexibilityProvidescapacitytoweatherProvidescapacitytoweathereconomicdownturnsandeconomicdownturnsandcompetitivethreatscompetitivethreatsIncreasesourabilitytocloseIncreasesourabilitytoclosetransactionstransactionsPfingstenhasneverfailedtoclosePfingstenhasneverfailedtocloseatransaction
35、duetofinancingatransactionduetofinancingPlatformCompaniesCapitalStructureEquity%HappControls55%RxLabel51%PremiereGlobalSports100%AllPoints55%TSE59%Powervar55%Closets100%Tropitone58%SpeeCo52%Technibus58%Garretson63%AP&M70%Hy-Bon57%Marlen56%FireKing65%CurtManufacturing65%OnServices100%TPCWire&Cable65%
36、Superior50%BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII2121PfingstenPartners,L.L.C.$525.0million$525.0million($millions)($millions)($millions)($millions)CompositionofFundIVInvestorsBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII2222FUNDIVFUNDIIIFUNDIIPfingstenPartners,L.L.C.FUNDI1991-199919
37、97-20062004-Present$26.3Million$100.0Million$285.0Million6Platforms9Add-ons4Platforms20Add-ons12Platforms17Add-onsAllportfoliocompaniesexitedActivelyseekingadd-oninvestmentsFundSizeInvestmentActivityStatusAllportfoliocompaniesexited2009-Present$525.0Million7PlatformsActivelyseekingplatforminvestment
38、sInvestmentHistoryBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII2323PfingstenPartners,L.L.C.DeliveraNetIRRequaltoorgreaterthan20%andaNetCashDeliveraNetIRRequaltoorgreaterthan20%andaNetCashMultipleequaltoorgreaterthan2.0timestolimitedpartnersMultipleequaltoorgreaterthan2.0timestolimitedpartnersCo
39、mpleteallinitialplatformcompanyinvestmentswithintheFundsfiveCompleteallinitialplatformcompanyinvestmentswithintheFundsfiveandonehalfyearinvestmentperiodandonehalfyearinvestmentperiodBuildvalueprimarilythroughoperationalimprovements,professionalBuildvalueprimarilythroughoperationalimprovements,profes
40、sionalmanagementpractices,globalcapabilitiesandprofitablebusinessmanagementpractices,globalcapabilitiesandprofitablebusinessgrowthgrowthAchieveliquidityforeachplatformcompanyinvestment,onaverage,Achieveliquidityforeachplatformcompanyinvestment,onaverage,withinfourtosevenyearswithinfourtosevenyearsOn
41、lycloseinvestmentsthatmeettheFundsstatedinvestmentcriteriaOnlycloseinvestmentsthatmeettheFundsstatedinvestmentcriteriaCommunicateactivelywithlimitedpartnersCommunicateactivelywithlimitedpartnersPerformanceStandardsBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII2424GlobalGlobalmanufacturermanufact
42、urerofofvaporvaporrecoveryrecoveryunitsunitsandandreplacementreplacementpartspartsandandproviderproviderofofrelatedrelatedfieldfieldandandemissionsemissionstestingtestingservicesservicesforforthetheoiloilproduction,production,biogas,biogas,andandindustrialmarkets.AcquiredJune2009.industrialmarkets.A
43、cquiredJune2009.www.hy-www.hy-PfingstenPartners,L.L.C.GlobalGlobalmanufacturermanufacturerofofcommercialcommercialandandindustrialindustrialfoodfoodprocessingprocessingequipmentequipmentandandpartspartsforforthethemeat,meat,poultry,poultry,fish,fish,vegetable,vegetable,fruit,fruit,bakery,bakery,conf
44、ectionery,confectionery,snack,snack,andanddairymarkets.AcquiredDecember2009.dairymarkets.AcquiredDLeadingmanufactureranddistributoroflighttowingproducts,includingtrailerhitches,Leadingmanufactureranddistributoroflighttowingproducts,includingtrailerhitches,ballmounts,ballmounts,electricalproducts,and
45、otheraccessories.AcquiredDecember2010.electricalproducts,andotheraccessories.AcquiredDNationalindependentserviceandequipmentproviderformissioncriticalpowerNationalindependentserviceandequipmentproviderformissioncriticalpowerequipmentofferingafullrangeofpreventative,remedialandemergencyequipmentoffer
46、ingafullrangeofpreventative,remedialandemergencymaintenanceservicesforuninterruptiblepowersupplies.AcquiredJanuary2011.maintenanceservicesforuninterruptiblepowersupplies.AcquiredJLeadingsupplierofhigh-performancewire,cableandconnectorsusedinharshLeadingsupplierofhigh-performancewire,cableandconnecto
47、rsusedinharshindustrialenvironments.AcquiredJanuary2011.industrialenvironments.AcquiredJGlobalmanufacturerandnationalserviceproviderofsecurity,safetyandassetGlobalmanufacturerandnationalserviceproviderofsecurity,safetyandassetprotectionproducts.protectionproducts.AcquiredSeptember2010.AcquiredSGloba
48、ldesigner,manufactureranddistributorofplaygroundandrecreationalGlobaldesigner,manufactureranddistributorofplaygroundandrecreationalproductsandsiteamenitysolutionsforavarietyofendmarkets.AcquiredMarchproductsandsiteamenitysolutionsforavarietyofendmarkets.AcquiredMFundIVPlatformInvestmentsBUILDINGBETT
49、ERBUSINESSESBUILDINGBETTERBUSINESSESII2525GlobalGlobalmanufacturermanufacturerandanddistributordistributorofofpartspartsandandaccessoriesaccessoriesforforthethegaming,gaming,amusement,amusement,vendingvendingandindustrialmarkets.AcquiredJune2004.andindustrialmarkets.AcquiredJDistributorDistributorof
50、ofreplacementreplacementpartspartsandandrelatedrelatedsuppliessuppliesforforthethefoodservicefoodserviceequipmentequipmentmarket.market.AcquiredAcquiredApril2006.DivestedNovember2010.April2006.DivestedNovember2010.PfingstenPartners,L.L.C.Fullservicemarketingfirmprovidingcustomizedsportsandentertainm
51、entprograms,sportstravelFullservicemarketingfirmprovidingcustomizedsportsandentertainmentprograms,sportstravelpackagesandeventticketstocorporateandretailclients.AcquiredJanuary2006.packagesandeventticketstocorporateandretailclients.AcquiredJGlobalGlobalmanufacturermanufacturerofofcustomcustomenginee
52、redengineeredinterconnectinterconnectsolutionssolutionsforforthethemedicalmedicaldevice,device,testtestandandinstrumentation,andaerospacemarkets.AcquiredJune2006.DivestedJune2010.instrumentation,andaerospacemarkets.AcquiredJune2006.DivestedJune2010.Manufacturerofpressuresensitiveprescriptionlabelsfo
53、rtheU.S.retailpharmacymarket.AcquiredManufacturerofpressuresensitiveprescriptionlabelsfortheU.S.retailpharmacymarket.AcquiredJune2004.June2004.DivestedJuly2006.DivestedJuly2006.GlobalGlobalmanufacturermanufacturerandanddistributordistributorofofelectricalelectricalpowerpowerconditioningconditioninge
54、quipmentequipmentforforthethemedical,medical,retailretailpoint-of-sale,industrial,andothermarkets.AcquiredSeptember2006.point-of-sale,industrial,andothermarkets.AcquiredSManufacturerManufacturerofofclosetclosetandandhomehomeorganizationorganizationsolutionssolutionsforforthetheresidentialresidential
55、constructionconstructionandandremodelingremodelingmarketsAcquiredMarch2007.marketsAcquiredMDesignerandmanufacturerofupscalecasualoutdoorfurnitureforthespecialtyretailandcommercialDesignerandmanufacturerofupscalecasualoutdoorfurnitureforthespecialtyretailandcommercialmarkets.markets.AcquiredOctober20
56、07.AcquiredOGlobalmanufacturerofagriculturalimplementsandtractorreplacementpartsforfarm,ranch,andGlobalmanufacturerofagriculturalimplementsandtractorreplacementpartsforfarm,ranch,andrelatedmarkets.AcquiredJune2008.DivestedAugust2010.relatedmarkets.AcquiredJune2008.DivestedAugust2010.Manufacturerofcu
57、stom-engineered,metalenclosedbusductsolutionsforthepowergeneration,Manufacturerofcustom-engineered,metalenclosedbusductsolutionsforthepowergeneration,petrochemical,commercialandindustrialmarkets.AcquiredSeptember2008.petrochemical,commercialandindustrialmarkets.AcquiredSNationaldistributorofpartsand
58、componentsandproviderofrelatedrepairservicesforaeroderivativegasNationaldistributorofpartsandcomponentsandproviderofrelatedrepairservicesforaeroderivativegasturbineenginesusedinthepowergeneration,industrial,marinepropulsion,andoilandgasmarkets.turbineenginesusedinthepowergeneration,industrial,marine
59、propulsion,andoilandgasmarkets.AcquiredDecember2008.AcquiredDFullserviceproviderofparty-neutral,outsourcedsettlementadministrationservicesforthehealthcareFullserviceproviderofparty-neutral,outsourcedsettlementadministrationservicesforthehealthcaremarket.AcquiredDecember2008.market.AcquiredDFundIIIPl
60、atformInvestmentsBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII2626PfingstenPartners,L.L.C.Business-to-businessBusiness-to-businessmediamediacompanycompanyservingservingthethefinancialfinancialservices,services,art,art,andandindustrialindustrialmarkets.markets.AcquiredApril1998.DivestedNovember2
61、006.AcquiredApril1998.DivestedNovember2006.ManufacturerManufacturerofofkitchenkitchenandandbathroombathroomcabinetrycabinetryforforthethenewnewconstructionconstructionandandremodelingremodelingmarkets.markets.AcquiredJune1998.DivestedOctober2003.AcquiredJune1998.DivestedOctober2003.DistributorDistri
62、butorofofautomotive,automotive,electronic,electronic,entertainmententertainmentandandgeneralgeneralmerchandisemerchandiseproductsproductstototraveltravelcenters,centers,carcarwashes,washes,massmassmerchants,merchants,convenienceconveniencestores,stores,andandotherotherrelatedrelatedchannels.channels
63、.AcquiredAcquiredMay1999.DivestedMay2004.May1999.DivestedMay2004.CatalogCatalogandandinternetinternetdistributordistributorofofautomotiveautomotiveaftermarketaftermarketproductsproductsforforspecialtyspecialtyvehiclesvehiclesincludingincludingJeep,Porsche,Mercedes,andToyotatruck.AcquiredApril2000.Di
64、vestedFebruary2006.Jeep,Porsche,Mercedes,andToyotatruck.AcquiredApril2000.DivestedFebruary2006.Publisherofrecreationalvehicleparkandcampgrounddirectories.AcquiredJanuary1991.DivestedMay1994.Distributorofeducationalsupplies,teachingaids,furnitureandequipmenttoprimaryandsecondaryschoolsandearlylearnin
65、gcenters.AcquiredMarch1993.DivestedDecember1997.Manufacturerofthermochromicliquidcrystalproductsandirreversiblecolorchangeindicatorsforthemedical,industrial,andconsumerproductsmarkets.AcquiredNovember1992.DivestedDecember1997.Business-to-business magazine publishing company serving the manufacturing
66、 and processindustries.AcquiredJune1993.DivestedJanuary1997.Manufactureroffoodandbeverageproductsservingfoodservice,in-storebakeries,contractpackingandprivatelabelretailmarkets.AcquiredMay1991.DivestedJuly1998.FundIandIIPlatformInvestmentsHowdoesPrivateEquitywork?BUILDINGBETTERBUSINESSESBUILDINGBETT
67、ERBUSINESSESII2828PfingstenPartners,L.L.C.FundCyclesNA8.8years9.3years11.0yearsprojectedFundI1.3yrs$26MFundII2.0yrs$100MFundIII2.1yrs$285MFundIV1.0yr $525MLiquidateLiquidateInvestmentInvestmentManageManageInvestmentInvestmentPortfolioPortfolioGenerateInvestmentGenerateInvestmentOpportunitiesOpportun
68、itiesandandProcessTransactionsProcessTransactionsRaiseCapitalRaiseCapitalBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII2929Total2009Transactions:350Total2009Transactions:3501%Closed1%Closed2Platformsand2Add-ons2Platformsand2Add-onsStepI:GenerateInvestmentOpportunitiesIndirectMarketingProgramDire
69、ctMarketingProgramHowdowebuycompanies?Total2010Transactions:427Total2010Transactions:4271%Closed1%Closed2Platformsand2Add-ons2Platformsand2Add-onsGenerateInvestmentOpportunitiesGenerateInvestmentOpportunitiesandandProcessTransactionsProcessTransactionsBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSES
70、II3030StepII:ScreenInvestmentOpportunitiesInvestmentCriteriaInvestmentCharacteristicsHowdowebuycompanies?GenerateInvestmentOpportunitiesGenerateInvestmentOpportunitiesandandProcessTransactionsProcessTransactionsBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII3131Nogeographicpreferenceforadd-onacqu
71、isitionsManufacturing,distributionandbusinessservicecompaniesBetween$15and$100millionAllplatformcompaniesmustbeheadquarteredintheUnitedStatesEstablishedandprofitablePrivatecompaniesundergoinganownershiptransition,recapitalizationorrequiringgrowthcapital;Required(aloneorwithacompatibleco-investor)We
72、have not made, nor do we intend to make, direct investments in real estate; natural resource companies; highly regulated businesses such as We have not made, nor do we intend to make, direct investments in real estate; natural resource companies; highly regulated businesses such as banks, insurance
73、companies and utilities; retail businesses; restaurant chains or technology, telecommunications or Internet companies. banks, insurance companies and utilities; retail businesses; restaurant chains or technology, telecommunications or Internet companies. corporatedivestitures;strategicadd-onacquisit
74、ions;selectfinancialrestructuringsorturnaroundsEBITDATransactionTypesRevenueGeographicPreferenceControlInvestmentStageIndustrySegmentsTransactionValueBetween$20and$150millionBetween$3and$12millionWhatisthePfingstenPartnersinvestmentcriteria?GenerateInvestmentOpportunitiesGenerateInvestmentOpportunit
75、iesandandProcessTransactionsProcessTransactionsBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII3232StableanddiversecustomerbaseandproductlinesDefensiblemarketpositionCompanyculturecompatiblewith:change,opencommunicationandteam-basedmanagementapproachOpportunitytoatleastdoublenetrevenuesoftheplatfo
76、rmcompanyduringownershipGrossmarginsreflectingvalue-addedproductsorservicesOpportunitiestoreducecostorimproveproductivityRevenueStabilityandConcentrationMarketPositionCultureGrowthGrossMarginsCostImprovementAssetManagementExitOptionsOpportunitiestoimproveworkingcapitalorfixedassetmanagementPotential
77、formultiplestrategicorfinancialbuyersuponexitMarketPositionGenerateInvestmentOpportunitiesGenerateInvestmentOpportunitiesandandProcessTransactionsProcessTransactionsWhatdowelookforinaninvestment?BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII3333GenerateInvestmentOpportunitiesGenerateInvestmentOp
78、portunitiesandandProcessTransactionsProcessTransactionsStepIII:ProcessTransactionsIndicationofInterestLetterofIntentDueDiligenceFinancingDocumentationCloseHowdowebuycompanies?BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII3434ThreeValueCreationModelsinPrivateEquityBuyLowSellHighFinancialEngineeri
79、ngBuildaBetterBusinessHowdowecreatevalue?ManageInvestmentPortfolioManageInvestmentPortfolioBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII3535BUILD Strategic ValueOperationalImprovementsProfessionalManagementPracticesGlobalCapabilitiesProfitableBusinessGrowthSELL for Cash toStrategicorFinancialBu
80、yerAt point of acquisition, businesses often lack:CapitalOperatingandfinancialmanagementdepthInfrastructureGlobalvisionandcapabilitiesProfessionalmanagementpracticesStrategic,tacticalandfinancialplanningprocessesAt point of divestiture, businesses are:LargerMoreprofitableMorecompetitiveStrategically
81、significantasaplatform(financialbuyer)oradd-onacquisition(strategicbuyer)TheDifferenceFour to Seven YearsSix to Twelve MonthsBUY Middle Market BusinessesManufacturingDistributionBusinessServicesSix to Twelve MonthsWhatisourinvestmentstrategy?ManageInvestmentPortfolioManageInvestmentPortfolioBUILDING
82、BETTERBUSINESSESBUILDINGBETTERBUSINESSESII3636BeginsduringduediligenceCrossFunctionalTeamBasedStrategicPlanObjectivesGrowthCustomersatisfactionEmployeesatisfactionCostmanagementFinancialmanagementVisualmetricsStakeholderalignmentContinuousProcessPlan-Do-Check-ActAssessBusinessMeasureResultsRe-evalua
83、teObjectivesManagementAlignmentExecuteStrategic andTactical PlansDevelopStrategic andTacticalPlansCulturalEconomicWhatisouroperatingmodel?ManageInvestmentPortfolioManageInvestmentPortfolioBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII3737Howdidwecreatevalue?ManageInvestmentPortfolioManageInvestm
84、entPortfolioRepresentsAllRealizedRepresentsAllRealizedTransactionsTransactionsBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII3838Howdoourreturnscomparetoalternativeinvestments?LiquidateLiquidateFundIVintage1991AsofDecember31,2006FundIIVintage1997AsofDecember31,200636.2%36.2%22.3%22.3%NetIRRGrossI
85、RRNetIRRGrossIRRS&P500andRussell2000returndatarepresentshypotheticalIRRsassumingFundinvestorshadinvestedintheS&P500andRussell2000indices(withS&P500andRussell2000returndatarepresentshypotheticalIRRsassumingFundinvestorshadinvestedintheS&P500andRussell2000indices(withdividendsreinvested)ratherthanFund
86、.PurchasesoftheindicesareassumedtobemadeinthesameamountandoccuratthesametimeasFunddividendsreinvested)ratherthanFund.PurchasesoftheindicesareassumedtobemadeinthesameamountandoccuratthesametimeasFundinvestments(includingmanagementfeesandexpenses)andsalesoftheindexareassumedtobemadeatthesametimeasindi
87、vidualFundportfolioinvestments(includingmanagementfeesandexpenses)andsalesoftheindexareassumedtobemadeatthesametimeasindividualFundportfoliocompanyexits(inproportiontotheamountinvested).companyexits(inproportiontotheamountinvested).Topquartile,medianandlowerquartileprivateequityrepresentNetIRRsfromt
88、he2007InvestmentBenchmarksReport:BuyoutsandOtherPrivateTopquartile,medianandlowerquartileprivateequityrepresentNetIRRsfromthe2007InvestmentBenchmarksReport:BuyoutsandOtherPrivateEquitybyThomsonFinancialasofDecember31,2006forfundswithlessthan$250millionincommittedcapitalformedduring1997.EquitybyThoms
89、onFinancialasofDecember31,2006forfundswithlessthan$250millionincommittedcapitalformedduring1997.BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII3939PfingstenPartners,L.L.C.OverviewCaseStudiesBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII4141CaseStudy:RxLabelTechnologyCorp.Investment Considerat
90、ion:Investment Consideration:MarketMarketleaderleaderforforthetheU.S.U.S.retailretailpharmacypharmacyprescriptionprescriptionlabellabelmarketmarketGrowingGrowingindustryindustrydrivendrivenbybyananagingagingpopulation,population,stringentstringenthealthcarehealthcareregulationsregulationsandandincre
91、asedincreaseddemanddemandforforlifestylelifestyledrugsdrugssuchasthosetotreathairloss,impotencyandobesitysuchasthosetotreathairloss,impotencyandobesityAttractiveAttractivepurchasepurchasepricepricemultiplemultipleofof4.04.0timestimesadjustedadjustedEBITDAEBITDAforthefiscalyearendedMarch31,2004forthe
92、fiscalyearendedMarch31,2004HighmarginnichemarketHighmarginnichemarketGrowthGrowthopportunitiesopportunities(mail(mailorder,order,hospitalshospitalsandandnewnewretailretailpharmacies,pharmacies,includingincludingtwotwoofofthethetoptopthreethreepharmacies,pharmacies,WalgreenWalgreenCo.andRiteAidCorp.)
93、Co.andRiteAidCorp.)RecognizedasthemarketinnovatorwithabroadproductofferingRecognizedasthemarketinnovatorwithabroadproductofferingPatentedPatentedandandpatentpatentpendingpendingtechnologiestechnologiestotoproduceproduceallallthreethreeprimaryprimaryprescriptionprescriptionlabellabeltechnologiestechn
94、ologies(simplex,(simplex,duplexduplexandandthermal)thermal)Well-managedWell-managedfacilityfacilitywithwithaastrongstrongplantplantmanagermanagerandandtalentedtalentedworkforceworkforceBusiness:Business:RxRxLabelLabelTechnologyTechnologyCorp.Corp.(“Rx(“RxLabel”)Label”)producesproducespressurepressur
95、esensitivesensitiveprescriptionprescriptionlabelslabelsforformassmassmerchandisersmerchandisers(29%),(29%),grocerygrocerystoresstores(28%),(28%),drugstoresdrugstores(28%),(28%),independentindependentpharmaciespharmaciesandandhospitals,andhospitals,andothercustomers(8%)othercustomers(8%)RxRxLabelLabe
96、lwaswasformedformedbybyPfingstenPfingstenandandHilcoHilcoEquityEquityPartners,Partners,L.P.L.P.(“Hilco”)(“Hilco”)totoacquireacquirethethepharmaceuticalpharmaceuticallabelinglabelingassetsassetsofofConvergentConvergentLabelLabelTechnology,Technology,Inc.Inc.RxRxLabelLabelwaswasthethefirstfirstLexmark
97、Lexmarkqualifiedqualifiedmanufacturermanufacturerofofprescriptionprescriptionlabelslabelsandandoneoneofoffewfewconvertersconverterswithwiththethecapabilitycapabilitytotoproduceproduceallallthreethreeprimaryprimaryprescriptionprescriptionlabels:labels:simplex,duplexandthermalrollsimplex,duplexandther
98、malrollQuick Facts:Quick Facts:Headquarters:Headquarters:Joplin,MOJoplin,MOAcquisitionDate:AcquisitionDate:JuneJune25,200425,2004DivestitureDate:DivestitureDate:July12,2006July12,2006Employees:Employees:110110BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII4242CaseStudy:RxLabelTechnologyCorp.Sourc
99、e of TransactionSource of TransactionPfingstenPfingstenwaswasintroducedintroducedtotothethecompanycompanyononaadirectdirectbasisbasisbybyHilco.Hilco.HilcoHilcoconcludedconcludedititrequiredrequiredananinvestmentinvestmentpartnerpartnerwithwithaafullfullcomplementcomplementofofoperationaloperationalc
100、apabilitiescapabilitiestotomanagemanagethetheoperationaloperationalchallengeschallengesofofcarvingcarvingoutoutthetheRxRxLabelLabelbusinessfromitsdistressedparentbusinessfromitsdistressedparentAdd-on Acquisitions:Add-on Acquisitions:NoneNoneValue CreationValue CreationFollowingFollowingthetheacquisi
101、tion,acquisition,PfingstenPfingstenbuiltbuiltRxRxLabelLabelintointoaastandalonebusinesswithinsixmonthsby:standalonebusinesswithinsixmonthsby:qqDoublingthesizeoftheJoplin,MOfacilityDoublingthesizeoftheJoplin,MOfacilityqqConsolidatingConsolidatingthetheTampa,Tampa,FLFLproductionproductionlineslinesint
102、ointotheJoplin,MOfacilitytheJoplin,MOfacilityqqCreatinganewstand-aloneMISsystemCreatinganewstand-aloneMISsystemqqHiringaseniormanagementteamHiringaseniormanagementteamFosteredFosteredaacontinuouscontinuousimprovementimprovementcultureculturebybytrainingtraining66TeamTeamLeaders:Leaders:dailydailycom
103、municationcommunicationbetweenbetweenmanagementmanagementandandworkforce;workforce;safetysafetyinitiatives;initiatives;rewardsrewardsandandmeritmeritbasebasecompensationprogramscompensationprogramsDuringDuringourourtwotwoyearyearownership,ownership,thethecompanycompanygeneratedgeneratedrevenueandEBI
104、TDAgrowthof37%and57%,respectivelyrevenueandEBITDAgrowthof37%and57%,respectivelyDivestitureDivestitureRxRxLabelLabelwaswassoldsoldtotoCenveo,Cenveo,Inc.Inc.(NYSE:CVO),(NYSE:CVO),aastrategicbuyer,onJuly12,2006strategicbuyer,onJuly12,2006Investment Investment Return Return Summary Summary ($ ($ in in t
105、housands)thousands)BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII4343CaseStudy:TSECompanies,L.L.C.Investment Consideration:Investment Consideration:Attractivenichepositioninahigh-growthmedicalmarketAttractivenichepositioninahigh-growthmedicalmarketEntrenchedEntrenchedrelationshipsrelationshipswi
106、thwithblue-chip,blue-chip,medicalmedicalcustomerscustomers(e.g.(e.g.Medtronic,St.JudeMedicalandGEHealthcare)Medtronic,St.JudeMedicalandGEHealthcare)BroadBroadproductproductofferingofferingwithwithmediummediumtotohighendhighendcustomcustomengineeredapplicationsrequiringtechnicalexpertiseengineeredapp
107、licationsrequiringtechnicalexpertiseConsistentConsistentgrossgrossmarginsmarginsandandEBITDAEBITDAmarginsmarginsaveragingaveragingapproximatelyapproximately30%30%andand10%,10%,respectively,respectively,withwithsignificantsignificantroomroomforimprovementforimprovementHighlyHighlyscalablescalablebusi
108、nessbusinessmodelmodelwithwithpotentialpotentialtotoexpandexpandbybyaddingaddingsalessalesandandmarketingmarketingresourcesresourcesininnewnewgeographies;geographies;addingaddingengineeringengineeringresourcesresourcestotoimproveimprovefront-endfront-endproductproductdesigndesignandandprototypingpro
109、totypingcapabilities,capabilities,improvingimprovingdistributiondistributionmarginsmarginsthroughthroughPfingstensPfingstensdirectdirectsourcingsourcingrelationshipsrelationshipsoverseas;overseas;andandimprovingimprovingdatadatagathering,gathering,measurementmeasurementandandwarehousingwarehousingpr
110、ocessesprocessesTargetedadd-onacquisitionopportunitiesTargetedadd-onacquisitionopportunitiesBusiness:Business:TSETSECompanies,Companies,L.L.C.L.L.C.(“TSE”)(“TSE”)manufacturesmanufacturesandanddistributesdistributescustomcustomengineeredengineeredinterconnectinterconnectproductsproductsforforaavariet
111、yvarietyofofmissionmissioncriticalcriticalapplications,applications,specializingspecializinginincustomcustommoldedmoldedwirewireandandcablecableproductsproductsforforpatientcriticalpatientcriticalmedicalmedicaldevicesdevicesandandmeasurementmeasurementinstrumentation.instrumentation.TSETSEsellssells
112、itsitsproductsproductstotocustomerscustomersthroughthroughaavarietyvarietyofofendendmarkets,markets,including:including:medicalmedical(71%),(71%),testtestandandinstrumentation(14%)andaerospaceandother(15%)instrumentation(14%)andaerospaceandother(15%)TSETSEcompetescompeteswithinwithinthethebroaderbro
113、aderinterconnectinterconnectcomponentscomponentsindustry,industry,ahighlyfragmentedmarketwithover1,500competingfirmsahighlyfragmentedmarketwithover1,500competingfirmsQuick Facts:Quick Facts:Headquarters:Headquarters:Arlington,MNArlington,MNAcquisitionDate:AcquisitionDate:June28,2006June28,2006Divest
114、itureDate:DivestitureDate:June1,2010June1,2010Employees:Employees:344344BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII4444CaseStudy:TSECompanies,L.L.C.Source of TransactionSource of TransactionPfingstenPfingstenwaswasintroducedintroducedtotothethecompanycompanyononananindirectindirectbasisbasisb
115、ybyFranklinFranklinCapitalCapitalPartners,Partners,aaMinneapolis-basedMinneapolis-basedmiddle-middle-marketinvestmentbankmarketinvestmentbankAdd-on Acquisitions:Add-on Acquisitions:InnovativeInterconnectTechnologies,Inc.InnovativeInterconnectTechnologies,Inc.Beaverton,ORBeaverton,ORd/b/aConnect-Tech
116、d/b/aConnect-TechValue CreationValue CreationFocusedFocusedTSETSEonontherapeutictherapeutic(i.e.,(i.e.,non-discretionary)non-discretionary)segmentssegmentsofofthethemedicalmedicaldevicedeviceindustry,industry,includingincludingneurostimulationandcardiovascularmarketsneurostimulationandcardiovascular
117、marketsCreatedCreatedcustomercustomerfocusfocusteamsteamswithwithcrosscrossfunctionalfunctionaldisciplines,disciplines,responsibleresponsibleforformanagingmanagingcustomerscustomersrequirementsrequirementsfromdevelopmentthroughfullscaleproductionfromdevelopmentthroughfullscaleproductionFormalizedFor
118、malizedcontinuouscontinuousimprovementimprovementprocessprocessthroughthroughopeningopeningaa“learning“learningcenter”,center”,aafacilityfacilityusedusedbybythetheContinuousContinuousImprovementTrainingandDevelopmentteamsImprovementTrainingandDevelopmentteamsTSETSEaddedaddedmanufacturingmanufacturin
119、gatatitsitsTaiwanTaiwanfacilityfacilityandandcreatedcreatedaadetailedplantoestablishaChinesefacilitydetailedplantoestablishaChinesefacilityAcquiredAcquiredConnect-TechConnect-Techtotoexpandexpandfinefinewirewiremanufacturingmanufacturingcapabilities,capabilities,servingservingaa$350$350millionmillio
120、nmarketmarketforformedicalmedicalultrasoundcablesultrasoundcablesDivestitureDivestitureTSETSEwaswassoldsoldtotoAMETEK,AMETEK,Inc.Inc.(NYSE:(NYSE:AME),AME),aaleadingleadingglobalglobalmanufacturermanufacturerofofelectronicelectronicinstrumentsinstrumentsandandelectro-mechanicalelectro-mechanicaldevic
121、esdeviceswithwith20092009revenuerevenueofof$2.1$2.1billionbillionInvestment Investment Return Return Summary Summary ($ ($ in in thousands)thousands)BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII4545CaseStudy:SpeeCoCompanies,L.L.C.Investment Consideration:Investment Consideration:Attractiveniche
122、positioninahighlyfragmented,growingmarketAttractivenichepositioninahighlyfragmented,growingmarketHighlyHighlyscalablescalablebusinessbusinessmodelmodelwithwithpotentialpotentialtotoexpandexpandthroughthroughnewproductintroductionsandexpansionofdistributionchannelsnewproductintroductionsandexpansiono
123、fdistributionchannelsLongstandingLongstandingcustomercustomerrelationshipsrelationshipsincludingincluding50+50+yearsyearswithwithTractorSupplyCompanyTractorSupplyCompanyHigh-caliberHigh-calibermanagementmanagementteamteamandandestablishedestablishedbusinessbusinessinfrastructureinfrastructureAsianso
124、urcingcapabilitiesAsiansourcingcapabilities15yearsofuninterruptedrevenueandEBITDAgrowth15yearsofuninterruptedrevenueandEBITDAgrowthTargetedadd-onacquisitionopportunitiesTargetedadd-onacquisitionopportunitiesBusiness:Business:SpeeCoSpeeCoCompanies,Companies,L.L.C.L.L.C.(“SpeeCo”)(“SpeeCo”)isisaaleadi
125、ngleadingglobalglobalmanufacturermanufacturerandandsuppliersupplierofofbrandedbrandedandandprivateprivatelabellabelagriculturalagriculturalimplementsimplementsandandtractortractorreplacementreplacementpartspartsforforthethefarm,farm,ranchranchandandrelatedrelatedmarkets.markets.SpeeCosSpeeCosproduct
126、sproductsincludeincludeloglogsplitterssplitters(51%),(51%),accessories(35%),diggers(7%),andOEMparts(7%)accessories(35%),diggers(7%),andOEMparts(7%)TheThecompanycompanyisisaapartpartofofaalarge,large,growinggrowingandandhighlyhighlyfragmentedfragmentedagriculturalagriculturalmachinerymachineryandandp
127、artspartsmarket,market,withwithproductproductdemanddemandprimarilyprimarilydrivendrivenbybyruralruralpopulationpopulationgrowth,growth,energyenergypricespricesandandbybythetheinstalledbaseandageoftractorsandimplementsinstalledbaseandageoftractorsandimplementsQuick Facts:Quick Facts:Headquarters:Head
128、quarters:Golden,COGolden,COAcquisitionDate:AcquisitionDate:June30,2008June30,2008DivestitureDate:DivestitureDate:August10,2010August10,2010Employees:Employees:134134BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII4646CaseStudy:SpeeCoCompanies,L.L.C.Source of TransactionSource of TransactionPfingst
129、enPfingstenwaswasintroducedintroducedtotothethecompanycompanyononananindirectindirectbasisbasisbybySt.St.CharlesCharlesCapital,Capital,L.L.C.,L.L.C.,aaDenver-basedDenver-basedmiddlemiddlemarketmarketinvestmentbankinvestmentbankAdd-on Acquisitions:Add-on Acquisitions:NoneNoneValue CreationValue Creat
130、ionFollowingFollowingthetheacquisition,acquisition,SpeeCoSpeeCoincreasedincreasedAsianAsiansourcing,sourcing,hiredhiredananOEMOEMSalesSalesRepresentativeRepresentativeandandexpandedexpandedproductproductofferingthroughnewproductdevelopmentofferingthroughnewproductdevelopmentSpeeCoSpeeCowaswasnamedna
131、medSeasonalSeasonalSupplierSupplierofofthetheYearYearbybyTractorTractorSupplyandCategorySupplieroftheYearbyDo-It-BestSupplyandCategorySupplieroftheYearbyDo-It-BestHiredHirednewnewCFOCFOtotoupgradeupgradefinancialfinancialreportingreportingandandsystemssystemsincludingnewwarehouseinventorymanagements
132、ystemincludingnewwarehouseinventorymanagementsystemEstablishedEstablishednineninecontinuouscontinuousimprovementimprovementteams,teams,providedprovidedtrainingtrainingtotonearlynearly10%10%ofofthetheworkforceworkforcethroughthroughPfingstenPfingstentrainingprogramstrainingprogramsDivestitureDivestit
133、ureSpeeCoSpeeCowaswassoldsoldtotoBlountBlountInternational,International,Inc.Inc.(NYSE:(NYSE:BLT),BLT),aaleadingleadingmanufacturer,manufacturer,marketermarketerandanddistributordistributorofofreplacementreplacementparts,parts,equipmentequipmentandandaccessoriesaccessoriesforforthetheglobalglobalfor
134、estry,forestry,lawnlawnandandgarden,garden,andandconstructionconstructionindustrieswith2009revenueof$500millionindustrieswith2009revenueof$500millionInvestment Investment Return Return Summary Summary ($ ($ in in thousands)thousands)BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII4747CaseStudy:All
135、PointsFoodserviceParts&SuppliesInvestment Consideration:Investment Consideration:Broadproductofferingwithover9,000stockandnon-stockitemsBroadproductofferingwithover9,000stockandnon-stockitemsAttractivenichepositioninahighlyfragmented,growingmarketAttractivenichepositioninahighlyfragmented,growingmar
136、ketConsistentgrossmarginsaveraging35%Consistentgrossmarginsaveraging35%HighlyHighlyscalablescalablebusinessbusinessmodelmodelwithwithpotentialpotentialtotoexpandexpandbybyaddingaddingsalessalesandandmarketingmarketingresources,resources,improvingimprovingdistributiondistributionoperationsoperationsa
137、ndandaddingaddingmanagementmanagementresourcesresourcesacrossacrossfunctionalfunctionalareasareasOpportunityOpportunitytotobroadenbroadenproductproductofferingofferingviaviaincreasedincreasedfocusfocusononrefrigerationandplumbingcategoriesrefrigerationandplumbingcategoriesStrongStrongreputationreput
138、ationamongamongtoptopcustomerscustomerswithwithaalowlowcustomercustomerconcentrationconcentrationRecession-resistantRecession-resistantmodelmodeldueduetoto100%100%replacementreplacementpartspartsnaturenatureofbusinessesofbusinessesTargetedadd-onacquisitionopportunitiesTargetedadd-onacquisitionopport
139、unitiesBusiness:Business:ConsolidatedConsolidatedCommercialCommercialControls,Controls,L.L.C.L.L.C.d/b/ad/b/aAllPointsAllPointsFoodserviceFoodservicePartsPartsandandSuppliesSupplies(“AllPoints”)(“AllPoints”)isisaaleadingleadingdistributordistributorofoffoodservicefoodserviceequipmentequipmentreplace
140、mentreplacementpartspartsandandrelatedrelatedsupplies,supplies,primarilyprimarilyforforcookingcookingandandwarmingwarmingequipmentequipmentasaswellwellasasplumbing,plumbing,refrigerationandware-washingequipmentrefrigerationandware-washingequipmentQuick Facts:Quick Facts:Headquarters:Headquarters:Mou
141、ntProspect,MountProspect,ILILAcquisitionDate:AcquisitionDate:April28,2006April28,2006DivestitureDate:DivestitureDate:November30,2010November30,2010Employees:Employees:204204BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII4848CaseStudy:AllPointsFoodserviceParts&SuppliesSource of TransactionSource o
142、f TransactionPfingstenPfingstenwaswasintroducedintroducedtotothethecompanycompanyononaadirectdirectbasisbasisbybyitsitsretainedretainedbusinessbusinessbroker,broker,DinanDinan&CompanyCompanyananinvestmentinvestmentbankingserviceprovidertotheM&AindustrybankingserviceprovidertotheM&AindustryValue Crea
143、tionValue CreationFollowingFollowingthetheacquisition,acquisition,PfingstenPfingstenhiredhiredseniorseniormanagementmanagementpersonnel,personnel,includingincludingaanewnewCEO,CEO,CFO,CFO,VPVPofofSales,Sales,PurchasingManager,andITManagerPurchasingManager,andITManagerInstalledInstallednewnewmanageme
144、ntmanagementinformationinformationsystems,systems,telephonetelephonesystemandwebsitesystemandwebsiteModernizedModernizedheadquartersheadquartersthroughthroughaarelocationrelocationandandexpandedexpandedwestcoastdistributionfacilitywestcoastdistributionfacilityDoubledDoubledthethepartspartsproductpro
145、ductoffering,offering,launchedlaunchedaarefrigerationrefrigerationpartscatalog,andestablishedanoutboundsalescallcenterpartscatalog,andestablishedanoutboundsalescallcenterAcquiredAcquireddirectdirectcompetitor,competitor,InternationalInternationalCommercialCommercialSupplySupply(“ICS”),(“ICS”),moremo
146、rethanthandoublingdoublingsalessalesandandcreatingcreatingaanationalnationaldistributiondistributionplatform.platform.IntegrationIntegrationofofICSICSacquisitionacquisitionresultedresultedininover$3.2millionofintegrationcostsavingsover$3.2millionofintegrationcostsavingsAcquisitionAcquisitionofofTund
147、raTundraSpecialtiesSpecialtiesprovidedprovidedAllPointsAllPointswithwithimmediateimmediateaccessaccesstotoend-usersend-usersandandfoodservicefoodserviceoperators.operators.IntegrationIntegrationsavingssavingsofof$1.5$1.5millionmillionachievedachievedwithinwithinsixsixmonthsmonthsofacquisitionofacqui
148、sitionTrainedTrained1111continuouscontinuousimprovementimprovementTeamTeamLeadersLeadersthroughthroughPfingstentrainingprogramPfingstentrainingprogramDivestitureDivestitureAllPointsAllPointswaswassoldsoldtotoKRGKRGCapitalCapitalPartners,Partners,L.L.C.,L.L.C.,aaDenver-basedDenver-basedprivateprivate
149、equityequityinvestmentinvestmentfirmfirmwithwithnearlynearly$5billionofcapitalundermanagement$5billionofcapitalundermanagementAdd-on Acquisitions:Add-on Acquisitions:InternationalCommercialSupplyCorporation,L.L.C.InternationalCommercialSupplyCorporation,L.L.C.Winsted,CTWinsted,CTTundraSpecialties,In
150、c.TundraSpecialties,Inc.Boulder,COBoulder,COInvestment Investment Return Return Summary Summary ($ ($ in in thousands)thousands)PreparingforacareerinPrivateEquityBUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII5050PreparingforaCareerinPrivateEquityForeignExchangeForeignExchangeBusinessEthicsBusine
151、ssEthicsInvestmentTheoryInvestmentTheoryEconomicsEconomicsMacroeconomicsMacroeconomicsMicroeconomicsMicroeconomicsAccountingAccountingFinancialReportingFinancialReportingManagerialAccountingManagerialAccountingAlgebraAlgebraStatisticsStatisticsNecessaryCourseworkMarketingMarketingCorporateManagement
152、CorporateManagementOperationsManagementOperationsManagementTradeFinanceTradeFinanceSuggestedAdditionalCourseworkTheoryofinterest,presentTheoryofinterest,presentvaluesandfuturevaluesvaluesandfuturevaluesCorporateFinanceCorporateFinanceIntroductoryIntroductoryCasestudiesCasestudiesFinancialMarketsFina
153、ncialMarketsFinancialStatementFinancialStatementAnalysisAnalysisToolsMicrosoftOfficeSuite(Excel,PowerPoint,Word,Outlook)MicrosoftOfficeSuite(Excel,PowerPoint,Word,Outlook)ResearchDatabases(OneSource,Hoovers,ABI/INFORM)ResearchDatabases(OneSource,Hoovers,ABI/INFORM)BUILDINGBETTERBUSINESSESBUILDINGBET
154、TERBUSINESSESII5151PreparingforaCareerinPrivateEquityIndustryresearchIndustryresearchFinancialmodelingFinancialmodelingPortfoliomanagementsupportPortfoliomanagementsupportTransactiongenerationsupportTransactiongenerationsupportInvestorreportingsupportInvestorreportingsupportActivitiesConcentrationin
155、financewithextensiveaccountingcourseworkConcentrationinfinancewithextensiveaccountingcourseworkPriorworkexperienceininvestmentbanking,commercialPriorworkexperienceininvestmentbanking,commercialbankingoraccountingbankingoraccountingExceptionalworkethicExceptionalworkethicKeenanalyticalcapabilitiesKee
156、nanalyticalcapabilitiesIntellectualcuriosityIntellectualcuriosityStrongverbalandwrittencommunicationskillsStrongverbalandwrittencommunicationskillsQualificationsWhatdoesanentry-levelfinancialanalystdo?BUILDINGBETTERBUSINESSESBUILDINGBETTERBUSINESSESII5252PreparingforaCareerinPrivateEquityFourbookfic
157、tionalseriesbyStephenFrey:FourbookfictionalseriesbyStephenFrey:The ChairmanThe ChairmanThe Power BrokerThe Power BrokerThe ProtgThe ProtgThe SuccessorThe SuccessorKing of Capital King of Capital (CareyandMorris)(CareyandMorris)AnythingbyJohnC.MaxwellAnythingbyJohnC.MaxwellHow to Win Friends and Infl
158、uence PeopleHow to Win Friends and Influence People(DaleCarnegie)(DaleCarnegie)FunReadingLeadership,EthicsandPeopleSkillsIndustryPublicationsPrivate Equity AnalystPrivate Equity Analyst(newsletter)publishedbyDowJones(newsletter)publishedbyDowJonesGalantes Venture Capital and Private Equity Directory
159、 Galantes Venture Capital and Private Equity Directory publishedpublished byby DowJonesDowJonesBuyouts Buyouts (newsletter)publishedbyThompsonFinancial(newsletter)publishedbyThompsonFinancialVentureEconomicsresearchreportsandindustrystatisticsVentureEconomicsresearchreportsandindustrystatisticsTextB
160、ooksIntroduction to Private Equity Introduction to Private Equity (Demaria)(Demaria)Private Equity Private Equity (Cendrowski,Martin,PettroandWadecki)(Cendrowski,Martin,PettroandWadecki)Handbook of Alternative Assets Handbook of Alternative Assets (Anson)(Anson)Inside Private Equity Inside Private E
161、quity (Kocis,Bachman,LongandNickels)(Kocis,Bachman,LongandNickels)Private Equity as an Asset Class Private Equity as an Asset Class (FraserSampson)(FraserSampson)Principles of Private Firm ValuationsPrinciples of Private Firm Valuations(FeldmanFeldman)The Masters of Private Equity and Venture Capital The Masters of Private Equity and Venture Capital (Finkel)(Finkel)The Private Equity Edge The Private Equity Edge (Laffer,HassandPryor)(Laffer,HassandPryor)Pioneering Portfolio Management Pioneering Portfolio Management (Swensen)(Swensen)
