A peek at the set of parameters that influence the investment decisions of most PE players
If you are a promoter of a firm, what do you
really need to showcase to prove Private Equity (PE), which is currently booming in India? How do you become a Gokuldas Exports or Allcargo, both of which have successfully wooed one of the world’s largest PE players, the US-based Blackstone? The trick, it seems is to convince investors that you offer an almost perfect and appropriate investment opportunity and that, over the years, the valuation of your firm will grow substantially by domestic wealth standards, which may or may not be so based on global standards. However, to achieve this objective, all promoters, who wish to attract private equity, should ask the one basic question: what do private equity firms look for in a start-up or a mid-stage venture?
Deepak Dayal (Vice President, First Tier Capital) avers, “While one cannot pinpoint a single determinant of success, yet the focus for PE firms is on two core areas, the capabilities of the management team, and the prospects for sustaining and defending the company’s revenues and profit formula.” This sounds quite logical; in fact, investors pay a lot of attention on the quality of top management than to any other factor when they decide to invest in any firm. Some experts argue that of the 10 parameters that are taken into account before investing in a firm, eight are directly or indirectly linked to the management team in place.
If you are a promoter of a firm, what do you
really need to showcase to prove Private Equity (PE), which is currently booming in India? How do you become a Gokuldas Exports or Allcargo, both of which have successfully wooed one of the world’s largest PE players, the US-based Blackstone? The trick, it seems is to convince investors that you offer an almost perfect and appropriate investment opportunity and that, over the years, the valuation of your firm will grow substantially by domestic wealth standards, which may or may not be so based on global standards. However, to achieve this objective, all promoters, who wish to attract private equity, should ask the one basic question: what do private equity firms look for in a start-up or a mid-stage venture?Deepak Dayal (Vice President, First Tier Capital) avers, “While one cannot pinpoint a single determinant of success, yet the focus for PE firms is on two core areas, the capabilities of the management team, and the prospects for sustaining and defending the company’s revenues and profit formula.” This sounds quite logical; in fact, investors pay a lot of attention on the quality of top management than to any other factor when they decide to invest in any firm. Some experts argue that of the 10 parameters that are taken into account before investing in a firm, eight are directly or indirectly linked to the management team in place.
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Toshiba may appear the same, there are key differences in this pugilistic battle. Sony smartly leveraged its position in a number of key products and content-distribution outlets. It seeded the market with Blu-ray-ready PS3 machines. The machines sold poorly in their first year, but it doesn’t take a rocket scientist to guess that more people bought PS3s than HD-DVD-ready players.
assessing a company on the basis of its past performance, AIM values it on future potential. Moreover, the advantages of AIM are that it offers flexibility and has no minimum requirement; secondary issues are very clear and thus fund raising is much easier. “No doubt designed primarily for emerging or smaller companies, AIM is considerably the best, with balanced regulation and not loosely held, what many critics feel. Besides, it’s not cheap,” defends the ‘specialist’ when it comes to AIM listing’. There have been other successful growth markets KOSDAQ (Korea), SASDAQ (Singapore), TXSV (Toronto), GEM (Germany), but no one is close AIM. In 2007, as many as nine India centric companies were listed on AIM, raising a total of $846 million, as per a fact sheet by the London Stock Exchange. Some of these companies include UTV Motion Pictures, Dev Property Development, Evolvence India, Promethean India and Indian Film Company.
communication maverick of Indian origin (whose AMNESTY campaign re-defined public service advertising like nothing else before or after) once stated that advertising is hardly a new phenomenon. It has existed for centuries. Then, tongue firmly in cheek, let fly a zinger. “Actually, it’s the second oldest profession & arose directly from the needs of the first!”
Boulevard, Pudong New Area, Shanghai if you want to witness how Reliance Industries is taking the Chinese world by storm. Or simply look up No. 3140, Jinmao Tower, No. 88 Shi Ji Avenue, Pudon Xinqu, Shanghai if you doubted Satyam Computers’ Chinese foray. And if you thought that these were the only two locations where you could spot some Indian tigers, think again and think afresh. On the 20th Floor of the West Tower Yang Cheng International Commercial Centre in Guangzhou, you stand a good chance of bumping into Malvinder Singh of Ranbaxy; or park your cab outside the Kerry Everbright City in Shanghai and you see hordes of NIITians rushing in to get their QWERTs correct; or simply take a short cut – a direct chopper landing atop IBM Tower, Pacific Century Centre Place in the Chinese capital will perhaps find you being told off by Kris Gopalakrishnan. Truth is that China invading India is a tale too old to narrate. Instead, India Inc. is returning the favour, and in ishtyle!
unique as it’s targeting the youth. Besides, since the focus is on the retail market, HDFC’s sturdy brand name helps. The bank has segmented its services according to the customers, where I think it has a competitive advantage over others. Though, the pace of deposits at HDFC have slowed down in the recent past, yet I think it will improve in the future. The bank’s current strategy is thus prudent enough.
haven’t seen any film promotion on such a huge scale. It was superb because you just need to make people aware and it helped a lot. But in this, there is nothing which I will call as a cheap publicity because whatever SRK did for promotion helped the film immensely as OSO was on the cards. His plugging efforts helped! 
ever since ’04, when Yahoo launched its very own algorithmic search engine. But that game, since inception, has always had a winner – Google. Always leading with a market share almost twice that of its closest rival – Yahoo, Google made search synonymous with its trade name that can today be found in the world’s leading dictionaries. But as they say, to play ‘his highness’ forever, one has to constantly weed out smaller men or competition, which Google was seen doing very well. Until the current quarter (on October, 2) when the gap shortened considerably in terms of experience, when using Yahoo’s all new search engine.
Consultancy Services (turnover of $4.81 billion during FY’07), Wipro ($3.89 billion), Infosys ($3.53 billion), Satyam Computers ($1.65 billion) & HCL Technologies ($1.44 billion) bob up, springing no surprises. And the rationale behind the truth being the sheer scale and stability of these bigwigs, which have showcased India’s IT prowess & have delivered on their respective promises, time and again. So with this much-touted sector reporting a combined turnover of $39.6 billion during FY2007 (a y-o-y growth of 30.7%; Nasscom report) and with forecast for FY’08 of $50 billion, India’s software productivity quotient remains a force to reckon with. However, while classical economics recurrently falters at what we call the ‘fallacy of composition’, we herein wish to make a conscious effort to understand more than what many would believe the Indian IT success story as merely ‘the whole (overall productivity) being a sum of (individual employee productivity) parts’. In other words, while most would assume that it’s the big multi-billion dollar canons where the average employee is the most productive (since the aggregate productivity is also the highest), we wish to interrupt; and in a fashion, most profound!
‘marketing guru addict’ for almost 37 whopping years! And if you thought even for a ghost of a moment that this trend was restricted to a handful of global CEOs who perhaps could ‘afford’ such marketing gurus for their companies (and marriage counsellors for their divorces), allow us to bring you face to face with the thundering reality: It’s a massively growing movement out there, and not just restricted to corporate America but spreading electrifyingly across all continents!
classy representation retainer fees. When Planman Media caught up with the top of the top marketing strategy gurus, the figures hit us hard. Eat this. If you wished to have just one speech or workshop session with the captain of the marketing battalion, C.K. Prahalad, he’ll charge you a straight up $60,000, apart from other expenses (1st class airfares, five star suites and all that jazz). Our favourite Ram Charan would set you off by a classy $30,000; Guy Kawasaki – $30,000; Jack Trout – $25,000 and so on.
companies have seen significant activity in the recent past. The total number of Private Equity deals announced during November 2007 stands at 38 deals with an announced value of $2.3 billion, as against 43 deals amounting to $1.81 billion in October 2007. The total number of PE deals during the first 11 months of 2007 stands at phenomenal 374, with an announced value of $15.92 billion. With buoyant capital markets, strong performance by Indian corporates in sectors ranging from metals, infrastructure, auto, telecom, among others and strong possibilities to integrate globally, this momentum is only expected to increase.
