investing in distressed businesses. ben shapiro oxford university: ppe strategy consultancy, pe...

INVESTING IN DISTRESSED BUSINESSES

Ben Shapiro

Oxford University: PPE

Strategy Consultancy, PE Commercial Due Diligence

NTL Inc: Strategic projects, portfolio management & post Chpt 11 restructuring

Hilco UK – Investment Director - Distressed acquisition and restructuring:

Founding partner of b7 Ventures

PERSONAL INTRODUCTION

b7 Ventures targets investments within the FMCG supply chain, from manufacturing and wholesale to retail and ecommerce.

Specialist corporate, financial and operational experience of its founding partners.

Combined with resources, infrastructure and expertise offered through our partnership with 151 Products Limited.

b7 VENTURES

Distressed and turnaround transactions

Buy-out opportunities

Venture deals where existing investors are seeking a partner for the commercialisation of innovative consumer products.

DEAL TYPES

THE INVESTMENT DECISION

Not for love

Act fast

Approach with caution

Secure a back-up plan

VALUING THE ASSETS/OPPORTUNITY

Added value – strategic or asset based?

B7’s strategic value for FMCG deals• Channels to market

• Marketing and design

• Compliance and regulation

• Logistics

• Sourcing with confidence

Other perspectives

SECURING THIS VALUE

Timing

Fixed vs Floating

Priority• Security• Control

HYPOTHESIS BASED DECISIONS

Set your hypothesis

Set the rules of engagement

Test the hypothesis

Be scientific, detached and cautious…until you fall in love !

DOFF CASE STUDY

4 weeks DD

Hypothesis re: CVA & Brand value

Secure Brand

Test hypothesis post acquisition:• Brand value• Management• Creditor appetite• Bank support

Falling in love – expensive but worth it!

THAMES CASE STUDY

5 days DD

Hypothesis re: Vertical integration

Secure Assets

Test hypothesis:• Management• Market

Falling out of love, but a happy ending!