Indiana University Professional Opportunities Orientation Program September 25, 2001 Presented by: Brian Oliver Laura Bissett Sarah Leinweber Financial Opportunities in Consulting

1 Introduction to InteCap  InteCap is the first consulting firm to launch an integrated practice dedicated to helping companies manage and extract value from their intellectual property  Thirteen offices with approximately 200 consultants with backgrounds in accounting, finance, and economics  InteCap clients are leading corporations, law firms, high-tech start-ups, individual inventors, and providers of capital involved in “IP-rich” transactions.

2 Presenter Backgrounds  Brian Oliver, Managing Director °Graduated with a B.S. in finance from Indiana University (1992) °Started his career at InteCap (formerly IPC Group) as an Analyst °MBA from Northwestern’s Kellogg School of Management (1996) °Worked in investment banking and private equity industries °Rejoined InteCap in 1999  Laura Bissett, Analyst °Graduated with a B.S. in finance and marketing from Miami University (2000) °Joined InteCap as an Analyst  Sarah Leinweber, Human Resources Manager °Graduated with a B.B.A. in finance and marketing from University of Wisconsin-Madison (1997) °Joined InteCap as an Analyst °After two years moved into the human resources department and is currently responsible for the firm’s national recruiting efforts

3 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 are typical tasks performed during the course of an engagement?  Self-assessment  Financial consulting as a career platform

4 Financial Services Litigation Support Investment Consulting Services Intellectual Asset Management Who are Financial Consultants?

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 Litigation 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 Litigation Written report, analysis, and presentation Expert report, analysis, and testimony Written assessment, recommendation and implementation What are the Results/Deliverables of These Projects?

8 Litigation Case Study As the Saying Goes… “Make a better mousetrap and the world will beat a path to your door.” Ben Franklin

9 What is the economic injury to the patent owner? Depressed Prices Lost Sales Opportunity Cost The Infringers Infringer 1 Infringer 2 Infringer 3 The Patent A Better Mousetrap! = Litigation Case Study Patent Infringement Damages

10 Litigation Case Study The Role of an Analyst  Participate in team meetings to discuss overall approach to assignment  Review client documents  Perform industry research  Research and compare established royalty rates  Build financial models  Perform quality control  Create trial exhibits

11 Valuation Case Study Trademark Valuation for Tax Purposes  Retained by a global manufacturer of household appliances to perform a trademark portfolio valuation Total Enterprise Value 100% Total Value of Intangibles 56% Other Intangibles Value 32% Fair Market Value 24% 56%

12 Valuation Case Study The Role of an Analyst  Participate in brainstorming discussions with team members  Research comparable companies in the industry  Forecast cash flows and prepare a cost of capital analysis  Prepare a valuation report/narrative  Create graphical presentations of financial analysis

13 Consultant hired to evaluate strategic options Client dilemma 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 Case Study IP Portfolio Evaluation

14 Strategy Case Study The Role of an Analyst  Conduct a search of all patents assigned to client using internal and external resources  Perform patent mapping analysis  Assess potential market opportunities to better understand the effects of commercialization  Perform a competitive technology assessment  Develop a licensing strategy, including a valuation analysis

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...