Page 2 of Summary
of Events
At
the “2 Days Extensive Workshop on Private Equity ".
1st
and 2nd August 2008, Hotel J
W Marriot
, Mumbai
| Mumbai Page 2(this one) | Mumbai Page 3 | Mumbai Page 4 | Mumbai Page5 |
Some snaps from the event
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Mr Sangeet Kr Gupta, on the Dias |
Mr B R Bhatia, Chairman, Maharani Paints India Pvt Ltd, and Mr V K Bountra, GM(Finance), MPIPL in the Front Rows at the seminar |
Some more snaps from the event
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Speakers
on the podium |
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The
Front of the J W Marriot Hotel |
The
Shivaji Statue at the |
Session 2 : Birds Eye View on the Contemporary Indian
Scenario
Mr Namit & Mr Utpal, CEO, Rare Enterprises.
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4M
– that the Private Equity Players sees? |
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k
Management |
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k
Market |
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k
Merchandise |
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k
Model |
First M = Management
Core about Taking a bet on the management. And this is the
main focus.
The Private Limited companies are in nature, illiquid assets,
non-continuing, So, there is a big “illiquidity risk”.
Key aspects that a PE / VC sees = “What is the vision of
Promoter ? “
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Is there a dream to make a larger company
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Today, the Rs 100 cr co,, PE owns 30% = 30 cr
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Do the mgmt have a vision to become 1000 cr, so that PE’s share gets Rs. 300Cr.
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Does he have the flexibility ?
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Are they building company for just their children / grandchildren only ?
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Or are they open to the larger picture ?
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Alignment of interest
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value for all , or
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Just benefits for himself ?
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Corporate governance – Does he "manage tax", manage overheads, and
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Is it “True and Fair “
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By its purpose, PE wants a IPO soon. So, wants a healthy disscussion on all things on the BOD level
Second M = Market
The PE sees, the market .
Is there a great market ?
Pain killers sell, vitamins don’t , even if vitamins is a
good thing.
is it a luxury ? Or mass consumption ??
Can it be a big market
?
What is the SAM ? =
Size of Addressable Market
What is the SHAM ? =
Share of Addressable Market
Third M =
Merchandise
The PE sees, the product itself,
Does it make sense ?
You get Premium if you are better that the competitive
products.
Fourth M = Model
The PE sees, the Business Model.
The model and plan of generating the profit.
Does it make sense ?
What is the model to earn revenue ?
Compare
with the 2000 dotcom era, and we had fancy models with, no money.
is it fully funded plan ?
must have fully funded for next 18 months
Should not have to worry for capital for 18 months
Can the promoter say
?
“Let me hire a CEO, who will work better than me. and I
continue being 80% holder.”
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