Get-together Meeting15th October 2015

CAVENDISH MANAGEMENT RESOURCES

AGENDA 1) Welcome & introductions

2) CMR Strategy Review & LET Scheme

3) Clients - handling

4) Investors – what they want to see

5) Project spin-off opportunities

6) Alternative funding sources & CMR SBG

7) Networking with wine & canapés

Current CMR Status

• Good proposition inflow

• International expansion – continuing

• Investor resources expanding (CMR, AIN, IZ, SBG, LET)

• Need better investor presentations

• Need to consider other routes forward for projects

• Need to be more entrepreneurial

CMR PERMANENT STRATEGY

• CMR core is senior management expertise

• Funding is the primary door-opener

• Funding not always best way forward or possible

• Other avenues must be considered & acted upon

• We must be innovative & entrepreneurial

• We must always be seen as professional & ethical

CMR STRATEGY Evolution

• CMR re-configured to near Not-for-Profit

• CMR margin reduced to minimal 7.5%

• CMR Executive margin increased to 75%

• CMR SBG margin to 92.5%

• Objectives:

• to make CMR more entrepreneurial & open

• to give virtually all profits to those making it happen

CMR LET SCHEME

LEGACY ENTREPRENEURIAL TRUST

Facilitating Legacies & Donations into

Entrepreneurial Small Companies & Innovations Globally

LEGACY ENTREPRENEURIAL TRUST

• Providing a new channel for bequests & donations

• Global for incoming bequests & donations

• Global for investments made (but selectable)

• Charity status = tax free in most countries

• Dedicated to promoting growth & innovation

• Commercial objective; to preserve & grow Trust

LEGACY ENTREPRENEURIAL TRUST• What’s in it for the benefactors:• Leaving some or all wealth to help future generations – forever

• Their bequest keeps-on giving hope and encouragement - forever

• A tax-free alternative to high admin cost charities or relatives

• All LET investees pledge at least 0.1% of sales to charities - forever

• Benefactors have a permanent memorial:

• Biographies, photos, etc., on permanent LET website – in

searchable format for future generations to benefit from their

experiences/advice

• Everlasting LET plaques/QR code - for memorials, houses, etc.

LEGACY ENTREPRENEURIAL TRUST

• LET’s Objectives:• To provide investment capital to help innovation and entrepreneurial

endeavour benefiting mankind generally

• Preservation of the Trust’s capital base to ensure future generations will

benefit from the Trust

• Benefactors are able to specify if their money is to be used:

• 1) Globally without limitation

• 2) Only in those countries the benefactor specifies

• 3) Only in developing nations

• 4) Only for non-commercial projects of great community value (noting

that this may not preserve the money into the future)

LEGACY ENTREPRENEURIAL TRUST

• The Trust’s Organisation:

• Registered charity status in most countries

• A main board of well-known and highly respected individuals

• An investment committee comprising professional experts

• An inner-circle of founding corporate members

• An outer-circle of professional firms acting as introducers and

facilitators

CMR IMPROVEMENTS

Project spin-off opportunities

Client handling

Investor handling

Alternative funding sources & CMR SBG

Project Spin-off Opportunities

• Funding – perhaps

• International licensing

• JV’s – Mergers – Acquisitions

• CMR Catalyst Group Formation

• Company Sale

• CMR Progressive Company Sale/ MBI

• CMR Self-funding Loan Scheme

• Corporate Recovery / turnaround

• Succession Planning

• Consultancy & Management Support

CLIENT HANDLING

The initial contact

Create good impression – also communications Do you exude confidence & gravitas? Operate as if you are the investor Do not start talking about fees

I am here to ask questions and review I am pre-vetting on behalf of our investors I will give you feedback before I leave

CLIENT HANDLING

The Investigation:

Like your proposition and want to explore furtherAsk questions (pre-prepared?) in a friendly wayForm your view on whether this a good projectForm your view on any issues or weaknesses likely to

affect investor attractionForm your view on alternative ways forward

CLIENT HANDLING

The Feedback/Discussion:

There are some issues that could adversely affect investor interest – they are …

Must address these before any presentation to investors – must not be half-baked

We can help to make the changes necessary and re-present to make more attractive to investors

CLIENT HANDLING

Closing & fee arrangements

As a principle we make our money primarily from achieving success. 5% … success fee

However, where we have to do work to bring a proposition to an investment-ready state, then a fee agreed depending on the work involved

For you, we will defer 50% of that fee (£$€) until a successful outcome is achieved

CLIENT HANDLING Closing & fee arrangements (2)

Raising money from investors can be difficult (quote Dragons Den/Shark Tank, etc.)

Need to also consider other routes forward both for other investment sources and alternative ways to develop your business. Do not want to be completely reliant on private investors

We can guide you ………………….

INVESTORS

General considerations

Most are not stupid None want to lose money but will take risks They are inundated with propositions They must get excited in first 60 seconds Will spend rest of time looking for reasons not to Will disregard forecasts; the concept is the thing Always interested in the entrepreneur

INVESTORS

The Presentation

It must stand-out with a WOW factor But without rhetoric It must explain the business concept It must address the issues for investors It must give confidence in the entrepreneur Support from PR/Media/Social Media important

Consider other investment sources

Alternative Funding Sources

• Private investors (CMR, AIN, Other networks)

• Institutional Investors (VCs, VCTs, PE)

• Trade Investors (JVs, Licensing, M&A, etc.)

• Crowdfunding (IZ)

• Government/EU sources

• CMR Corporate Funding SBG

Wine &

Canapés

Thanks for coming . . . .