Mastermind

1
Mastermind
Venture Portfolio Company Advisory
2
The Prevailing TrendHands-on

• Kohlberg Kravis Roberts Co (KKR)
• focus on operational expertise . . . the best
  returns will be achieved by firms with a more
  hands-on approach to the companies they own
• KPS
• installed new management . . . and negotiated
  dozens of new contracts for the company
• Barington
• Private equity firms acquire companies, they
  bring in a chief executive, they put together a
  board, and they manage the business to the best
  of their ability for the owners of the company

3
Way of Hands-on

• DIY vs Hired Gun

4
Basic Requirementof Hired Gun

• VC needs amorphous coach for portfolio companies

Amorphous means no fixed format By Mr. Tang
Chung-yen, Tom, JP Managing Director of Meadville
Technologies Group Limited Chairman of Hong Kong
Exporters' Association
5
What is amorphous?
Right Brain RD Product Offering Product Mix
Advertising Promotion Sales Pitch Service
Design
Left Brain Logistic Supply Chain Costing
Procurement Operation
6

• However
• Over 90 of Advisors are outcast

7

• Still amorphous is not enough for now
• Therefore usage of Advisory service is still low
  in VC community

8
Why not Hire?

• When VC meets traditional advisory firms
• Advisor need to familiar with VC culture and have
  wide spectrum of industry knowledge
• Advisor normally retained for relative long
  period of work
• Large scale advisory team is bureaucratic end up
  expensive bill

9

• VCs formula is time beating,
• advisory should dance with them

10
Brand New Advisory for VC

• For VC portfolio company advisory should be
• Simple, Short, Speed
• Speed Spot Where Is
• The Improvement Room
• Speed Inspire
• And Co-op With The Management
• Speed Complete Execution

11
Mastermind Daily BasedAdvisory Service for VC/PE

• Features
• Short Term Advisory Service
• Cross Function Help

12
Mastermind ServiceModel Evolution
Legacy
New Economy
Uncharged them gtgtgt Succession Scaling
13
Our Experiences (TMT)
Computer System
TV/ Radio

• Magnetic Products

Computer Manufacturing
PR
Cellular Network
Battery
LCD Display
Video-conferencing
Exit 4 Billions
Electronic Toy
Consumer Electronic Applicants
Electronic Components
Internet
Film/Movie Studio
Computer Software
Printed Circuit Board
ASP
IDD Telecom
VOIP
Market Research
Home Entertainment (Hardware Content Provider)
14
Our Experiences(Health Care to Legacies)

• Fashion

Office Equipment
Personal Care
Food
Health Food
FMCG
Building Material
Chemicals
Optical Wear
Children Wear
Traditional Chinese Medicine
15
Experience In Top Management

• Change Governance System to meet the global stock
  regulation and rolling out of board committees
• Change the autocratic/centralized management mode
  to autonomy/ decentralized mode
• Change the central from Hong Kong executive led
  to Chinese executive led
• Change of BOD from family control to professional
  management

16
Experience In Front Line

• Add brand building arm in China market for export
  base manufacturer
• Turn the engineering dept. from resistance mode
  to proactive mode, end up design leds sales and
  supply chain coupling business model
• Setup a Government relationship building system
  with balance score card

17
Experience In Back Yard Bottom

• Since early 90s, we have already achieved a
  numerous cases in production cost reduction and
  productivity increasing by spotting out the major
  problem in the production line to reduce the
  defection rate
• Most of the production and supporting problems
  are just standard issues for Mastermind

18
Todays Mastermind
Other than ongoing client, in family or
individual exit amount to 2 billions pre 2000,
to 3 billions post 2000
19
From now on, We simply Offer

• Scaling

20
Masterminds Scaling Recipe

• Business Concept Sex Scalability
• Investment market attractiveness
• Ease of accomplishment
• Talents Veteran Start-up Team
• Team up experienced start-up executives
• Coach and steer the Team through the start-up
  process

21
Masterminds Scaling Recipe

• Value Steering Formula , -, x,
• () Add concepts / business lines
• (-) Drop obsolete business line(s)
• (x) Multiply capacity and scale-up business
  volume
• () Consolidate under-performed operations

22
Masterminds Scaling Recipe

• Operational Efficiency 4-Point Convergence
• To align the people, systems, politics etc among
  the 4 functional areas, namely
• Frontline Sales, Marketing
• Back Yard Production, RD
• Base HR, IT
• Top BOD, Top Management

23
Masterminds Scaling Recipe

• Corporate Value OptiMax
• A flexible approach to management the
  injection of capital and the selling of shares
• One-off vs Multiple Phases
• Continuous assessment of the value of the
  company
• Highly responsive to the capital market
  sentiment

24
Suggested 1st Day Schedule
25
First Day of FAQ Area

• Technology application commercialization room
• Biz / profit model
• New biz opportunity viability
• People challenges(board, CEO, sales marketing
  and various functional heads)

26
Follow up Area

• Build/buy analysis
• Recruitment, Teaming possibility
• Strategic partnership possibility
• Workshop facilitation (master plan, SWOT
  analysis, marketing positioning)
• Wargaming (competitor simulation game)
• Further training
• Meeting orchestration (supplier, manufacturer,
  tech partner, remarketer, government, related
  VIP)
• Tech people inspiration session
• You name it

27
Price

• Hong Kong
• 1st day US500
• 2nd day onward US5000/day
• Outside Hong Kong
• 1st 2nd US500/day (Transportation time
  included)
• 3rd US5000/day
• Out of pocket is not included

28

• What else for VC?

29
Advisory For VC, PE Only

• Keep it live or let it died
• From people politics to people change
• Aggregate two or more portfolios into one
• Next scaling direction and hurdles
• To marry with legacy operator?

30
Operator Networking

• Marriage as Growth?
• Yes! Sometimes marry the business to established
  parties with compatible technology or business
  with strong distribution network can achieve
  immediate growth.
• Mastermind has
• A network of listed companies
• CEO Exchange Platform
• CUHK EMBA Alumni Network

31

• Let us
• Dive into Water
• together