Presentation on theme: "ECONOMICS VALUATION STRATEGY www.intecap.com Financial Opportunities in Consulting Indiana University Professional Opportunities Orientation Program."— Presentation transcript:
ECONOMICS VALUATION STRATEGY www.intecap.com Financial Opportunities in Consulting Indiana University Professional Opportunities Orientation Program September 19, 2000
2 Introduction to financial consulting Who are financial consultants? What do financial consultants offer their clients? In what types of projects are financial consultants engaged? What is a typical day in the life of a financial consultant? Self-Assessment Financial consulting as a career platform
3 Financial Services Litigation Support Investment Consulting Services Intellectual Asset Management Who are financial consultants?
4 Introduction to InteCap Provide economics, valuation, and strategy consulting services Ten offices with approximately 200 professionals with backgrounds in accounting, finance, and economics First consulting firm in the United States to launch an integrated practice dedicated to helping companies manage and extract value from their intellectual property
5 What do financial consultants offer their clients? Specialized expertise Outsourcing/Resources Fresh perspective Objective third party opinion Quick turn-around Focused attention Structured solutions to unstructured problems The “Why” behind the numbers
6 Valuation Strategy Strategy Economics What the value is What the value should have been What the value could be In what types of projects are financial consultants engaged?
7 Valuation Strategy Strategy Economics Written Report, Analysis, and Presentation Expert Report, Analysis, and Testimony Written Assessment, Recommendation and Implementation What are the results/deliverables of these projects?
8 Fact-Finding INTERVIEWS FINANCIALSTATEMENTS MARKET RESEARCH INTERNET Question: Why did our profit margins drop on our premium product?
9 Answer: New competitor caused prices to drop, meanwhile production costs have increased $0 $20 $40 $60 $80 $100 $120 $140 199419951996199719981999 Prices Costs Prices Costs New Competitor Enters the Market
10 Patent Infringement Litigation The Patent What is the economic injury to the patent owner? Depressed Prices Lost Sales Opportunity Cost The Infringers Infringer 1 Infringer 2 Infringer 3 A Better Mousetrap! = Economics Example by InteCap
11 Trademark Valuation Valuation Example by InteCap Retained by a global manufacturer of household appliances to perform a trademark portfolio valuation Total Enterprise Value 100% Total Value of Intangibles 56% 56% Other Intangibles Value 32% Fair Market Value 34%
12 Intellectual Property Quality Management (IPQM ) Client Dilemma Consultant Hired to Evaluate Strategic Option How can we extract value from our non-strategic technology? - License to Others - Sell outright - Spin-out as new company - Donate to a university Strategy Example by InteCap
13 THERE IS NO TYPICAL DAY!!! What is the “typical”day in the life of a financial consultant?
14 How about a “typical” week in the life of a financial consultant? Monday - Create graphical presentations of financial analysis Tuesday - Travel to NYC for client meeting regarding trademark valuation Wednesday - Conduct market/industry research and review financial and business records Thursday - Forecast cash flows and prepare a cost of capital analysis Friday - Participate in brainstorming discussions, begin quality-control process on analyses, and celebrate Friday with firm at happy hour!
15 Self-Assessment Would you enjoy being a financial consultant? Unstructured environment? Do you prefer... Other financial career Financial consultant Finance only? Concentrate in a single industry? Compartmentalized work? Corporate culture? Finance, marketing, economics, accounting? Variety of industries? Team work? Project work? Functional work? Consulting culture? Structured environment?
16 Consulting as a career platform Various skills acquired as a financial consultant CPA, CFA, MBA opportunities Client contact and industry exposure Foundation for many other careers
17 Consulting: Managing Director, InteCap Investment Banking: Managing Director, Bear Stearns Marketing: Brand Manager, Procter & Gamble Sales: Account Executive, Warner Lambert Graduate School: MBA - Kellogg, Chicago, UCLA, etc. Law - Michigan, UVA, Wisconsin,etc. Consulting as a career platform Examples of InteCap Careers
18 Financial consultants provide Clients with expertise and objectivity creative solutions clarity and structure Consultants with use and development of a wide range of skills broad career platform In Summary...