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Service Overview. 2 Company Summary Our Mission Notch Partners serves the buyout community exclusively. We enhance investment returns by cultivating client.

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Presentation on theme: "Service Overview. 2 Company Summary Our Mission Notch Partners serves the buyout community exclusively. We enhance investment returns by cultivating client."— Presentation transcript:

1 Service Overview

2 2 Company Summary Our Mission Notch Partners serves the buyout community exclusively. We enhance investment returns by cultivating client relationships with CEO-level executives whose experience and contacts drive profitable deal activity. Value Proposition 1)Management talent for client deals in-process which lack appropriate leadership 2)Executive expertise for idea vetting, due diligence consulting, boards of directors/advisors, etc. 3)Talent pipeline for existing and future portfolio companies 4)Proprietary deal flow

3 3 Our Business Executive Driven Deals Client Driven Deals Client Driven Portfolio Search Executive Program Development Through seminars, workshops and proprietary worktools, Notch identifies and works with Backable CEOs to develop viable deal situations. Deals may be proprietary or part of auction processes. Typically within a weeks time, Notch identifies, screens and introduces potential CEOs, BOD members or consultants who provide valuable insights and angles to Clients on new deal situations. Leveraging our experience with over a hundred PE firms, Notch assists its clients to develop and execute formalized executive programs which are suited to each firms unique needs. Notch conducts executive searches for CEOs, CFOs and other members of top level management. Typically Notch searches are discreet and completed in far less time than those done by traditional recruiters.

4 4 Our Partners Andrew Thompson Andrew Thompson Managing Director, Primedia Ventures Managing Director, Primedia Ventures Consultant: McKinsey & Co. Consultant: McKinsey & Co. Executive/board of several private equity-backed companies Executive/board of several private equity-backed companies HBS, Dartmouth HBS, Dartmouth Mei-Mei Tuan Founding Partner, M 2 Associates, strategic consultancy for private equity firms and portfolio companies Founding Partner, M 2 Associates, strategic consultancy for private equity firms and portfolio companies Investment banker: Goldman Sachs, Bank of America Investment banker: Goldman Sachs, Bank of America COO/CFO of Sierra Club Foundation and S.F. Food Bank COO/CFO of Sierra Club Foundation and S.F. Food Bank HBS, Wellesley HBS, Wellesley

5 5 Bringing Sponsors and Targets Together Financial Sponsor Target Sponsors need... Industry knowledge Backable CEO & team Solid go-forward plan An edge in bidding process Notch Partners

6 6 How Notch Clients Benefit Ability to pursue deals which: Ability to pursue deals which: Are outside of clients industry comfort zone Are outside of clients industry comfort zone have weak incumbent management have weak incumbent management have planned management turnover have planned management turnover Increased due diligence manpower in the form of inexpensive / free input from operating experts Increased due diligence manpower in the form of inexpensive / free input from operating experts Reality-check for analysis and forward projections Reality-check for analysis and forward projections Proprietary deal flow and/or proprietary angles on auction deals Proprietary deal flow and/or proprietary angles on auction deals Resource for evaluating deal hypotheses before devoting resources to deal sourcing / evaluation Resource for evaluating deal hypotheses before devoting resources to deal sourcing / evaluation

7 7 Proprietary Deal Investment Thesis Auction Executive Qualities We Seek Client-initiated: Deal-capable CEO with perfect fit background Industry expert Willing to vet thesis Time/capacity to help source deals Potential CEO Capable of developing well-informed view of the deal after review of OM Available to discuss deal with investor Open-minded w/regard to mgt/board role or consulting Notch-initiated Deal-committed CEO with proprietary deal Appropriate operating background CEO not in job seeking mode Thesis is a good match to exec background Proven willingness to approach targets Same

8 8 Cultivating Executive Relationships Misdirected activity Poor follow through Misaligned expectations Inadequate understanding of PE firms Determine potential mutual interest areas Establish inv. thesis and identify possible targets Initial contact with private equity firm(s) Follow on meeting(s) usually with other partners Determine relationship parameters Pursue deal opportunities in partnership Meeting logisticsInitiate contact Help refine investment thesis Maintain feedback loop Intermediate in negotiations Assist on presentations Provide guidance on interaction Align expectations Common Pitfalls: Notch Involvement with Executives:

9 9 Notch Partners Core Competencies Rapid understanding of industries and deal situations Rapid understanding of industries and deal situations Very targeted searches Very targeted searches Identification of true Deal Executives Identification of true Deal Executives Development of Deal Executives and compelling deal targets Development of Deal Executives and compelling deal targets Cultivation of deep executive relationships Cultivation of deep executive relationships Execution within tight deal timeframes Execution within tight deal timeframes Bringing knowledge of private equity industry to the executive cultivation process Bringing knowledge of private equity industry to the executive cultivation process

10 10 Notch vs. Traditional Search Firms Search Firms Work with Job Seekers Several month process Focused on job openings Work on a transactional basis Large retainers Notch Partners Work with Deal Executives Initial exec meetings in ~1 week Focused on enabling deals Work on a relationship basis Success-fee orientation

11 11 Notch Executives Typical Profile 20-30 years experience in focus industry, with 5- 15 years in chief executive role 20-30 years experience in focus industry, with 5- 15 years in chief executive role Significant operational track record, large P&L Significant operational track record, large P&L M&A, post-merger integration, turnaround and/or PE experience M&A, post-merger integration, turnaround and/or PE experience Active in deal flow, with one or more current deals, sometimes proprietary Active in deal flow, with one or more current deals, sometimes proprietary Able to pull together key executives to lead a company post-deal if needed Able to pull together key executives to lead a company post-deal if needed

12 12 What We Look for in a Client A mix of opportunism and hypothesis- based deal-sourcing A mix of opportunism and hypothesis- based deal-sourcing An interest in management/board enhancement as a possible differentiating capability vis-à-vis other investors An interest in management/board enhancement as a possible differentiating capability vis-à-vis other investors Willingness to collaborate with a committed Deal Executive to refine concepts and explore targets Willingness to collaborate with a committed Deal Executive to refine concepts and explore targets

13 13 Starting a Productive Relationship with Notch Determine initial set of 2-4 hypotheses or industry areas upon which to collaborate, plus opportunistic deal situations as they ariseDetermine initial set of 2-4 hypotheses or industry areas upon which to collaborate, plus opportunistic deal situations as they arise Incorporate Notch into updates on incoming client deal flowIncorporate Notch into updates on incoming client deal flow Designate a senior team member as primary interfaceDesignate a senior team member as primary interface Set aside 30+ minutes for weekly update meeting/call with NotchSet aside 30+ minutes for weekly update meeting/call with Notch Deal flow updates – from Notch and from ClientDeal flow updates – from Notch and from Client Status update on any executive relationships in progressStatus update on any executive relationships in progress Any evolution in industry focus, investment hypothesesAny evolution in industry focus, investment hypotheses

14 14 Building the Notch Network Speaking engagements to executive groups Ad placements in magazines and trade publications Industry databases, and directories Networking events Word of mouth referrals from Notch Network and other executives Referrals from our clients Reaching out on a one-to-one basis

15 15 Deal Executive Defined Visionary CEO-level leader Visionary CEO-level leader Seeking to complete an acquisition and lead the resulting company Seeking to complete an acquisition and lead the resulting company Desires partnership with a financial sponsor Desires partnership with a financial sponsor Has a clear sense of how to create value in the sector he or she is targeting Has a clear sense of how to create value in the sector he or she is targeting Deep experience in industry of target company(ies) Deep experience in industry of target company(ies) Proactively seeking to identify deal opportunities which he/she can bring to the financial sponsor Proactively seeking to identify deal opportunities which he/she can bring to the financial sponsor

16 16 Client Feedback Working closely with Notch Partners has added a new dimension to our business. We depend on Notch to get an early leg up in deal situations and introduce us to executives who can add value during the pre-and post-acquisition phase. Their executives have helped us get smart on industries, companies, and specific situations, and as a result, we have become more efficient and effective on a wider variety of transactions. - AEA Investors Notch provides a competitive differentiator that few firms have … their timeliness and flexibility are outstanding. Working with Notch has fundamentally changed our approach to the deal business. - Reliant Equity Investors

17 17 More Client Feedback Notch consistently introduces us to quality, deal-savvy executives to pursue new deal opportunities or to assist in diligencing new industries. They have a feel for which executives are backable and provide real value to us in screening qualified individuals. - Cortec Group Their partners unique backgrounds equip them to quickly identify and evaluate entrepreneurial executives who can lead a deal to closing. - Harvest Partners

18 18 Executive Perspectives Notch uses their unique insight to harmonize the objectives of private equity with those of executives pursuing and investment thesis, to the benefit of all the parties. I am not aware of another firm that has had the vision to take on this important role. Notch uses their unique insight to harmonize the objectives of private equity with those of executives pursuing and investment thesis, to the benefit of all the parties. I am not aware of another firm that has had the vision to take on this important role. - Robert Isen, CEO Allied Extruders, Inc. CEO Allied Extruders, Inc. I have not experienced anything like working with Notch Partners in I have not experienced anything like working with Notch Partners in my entire career. They have a remarkable talent for putting together personality, chemistry, skills, interests, and opportunity to make an extraordinary match; they are not just filling a position. I go out of my way to introduce people to Notch Partners. my way to introduce people to Notch Partners. - Adam Klein Executive Vice President Executive Vice President EMI Music EMI Music

19 19 Executive Perspectives From conceptualizing an investment thesis and developing value creation strategies to identifying investors raising financing, Notch works closely with executives every step of the way. In today s tough environment, partnering with Notch significantly increases the probability for an executive to get a deal done with private equity. From conceptualizing an investment thesis and developing value creation strategies to identifying investors raising financing, Notch works closely with executives every step of the way. In today s tough environment, partnering with Notch significantly increases the probability for an executive to get a deal done with private equity. - Doug Atkin - Doug Atkin President and CEO, Majestic Research President and CEO, Majestic Research Notch offers distinctive value in 3 ways: Notch offers distinctive value in 3 ways: - An unmatched understanding of entrepreneurial operating executives - Exceptional insight and competence to define and structure a complex career move - A dazzling array of contacts across sectors. They know who to call and who you should call. - A dazzling array of contacts across sectors. They know who to call and who you should call. - C.J. Kettler - C.J. Kettler CEO Lime Media CEO Lime Media

20 20 Active Industry Sectors Consumer Products Consumer Products Business Services / Outsourcing Business Services / Outsourcing Media Media Industrial Manufacturing Industrial Manufacturing Financial Services Financial Services Health Care Health Care Retail Retail Specialty Chemical Specialty Chemical... and others... and others


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