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MELANIE STUBBING DR NICOLA MURPHY Future proofing a VC backed organisation.

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Presentation on theme: "MELANIE STUBBING DR NICOLA MURPHY Future proofing a VC backed organisation."— Presentation transcript:

1 MELANIE STUBBING DR NICOLA MURPHY Future proofing a VC backed organisation

2 Future proofing Clarity of vision and future direction Ability to model [re-model] to emerging [consumer] trends Ability to accelerate growth Competitive strength …whilst leveraging value

3 Pros Strategic investment vs short term external pressure Ability to drive to future time frames Selectivity ; talent, management capability, prioritising investments vs business cases Diversity of input Focus

4 Potential Cons Internalism Choice of partner/ business fit Limited frame of reference on key decisions Board capability & diversity Ability to raise funds

5 How it works… (when it works) Investor and company alignment Complementary capabilities Strong relationships Commitment to business Instincts for sector/ brand/business model Mutual clarity on expectations

6 River case study Set up in 1994 Re-financed in 1999 to remove 2 of original 4 shareholders Needed to raise £2m – mixture of debt and equity (14%) Beauty parade – 7 offers Barclays Ventures chosen

7 River 3 year payback plan Stiff but achievable numbers 9/11 Lost 2 major travel clients – inc Virgin Atlantic Failed to hit all thresholds Relationship degenerated

8 River BV put a non-exec on River Board Micro-managed River Directors Barclays Bank though – very supportive We gave the non-exec equity to negotiate our exit from BV Non-exec became River Chairman

9 Weight Watchers Case Study Sold by Heinz in 1999 to Artal Managed by Invus Now 52:48 PE & Publicly Listed hybrid Long term investment proposition Cash generative and very successful payback

10 Weight Watchers Investment team bring strong consulting capabilities (ex BCG) Support management growth aspirations with analytical and objective input Dual board construct between Invus; [management board] and independents [governance]

11 Weight Watchers Synergy between consumer proposition and owner model works Focus on long term growth + high margin, variable cost model Able to withstand cyclical trends whilst not reacting to short term pressures Ownership enabling; significant model shift into healthcare Generates wealth and optimised as a PE business 3x revenues 10x earnings Not always valued/ understood by external market

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