Slide 1

BEEF AUSTRALIA 2015 Farmings Next Frontier: The Quest to Invest DAVID KRAUSE May 2015 Page 1 BEEF Australia 2015

Slide 2

OVERVIEW OF THE PRESENTATION Introduction Whats working Whats not working How it can be done better Page 2 BEEF Australia 2015 What is Investment Ready?

Slide 3

INTRODUCTION David Krause Partner Corporate Finance, Food and Agribusiness National Leader Professional services firm audit, tax and advisory services Australia 9 offices, 160 Partners, over 1,200 employees International over 1,200 offices, 144 countries, 56,000 employees Page 3 BEEF Australia 2015 About BDO

Slide 4

WHAT IS AN INVESTMENT READY PROPOSITION Professionalism Engage respected advisors corporate, accounting & legal have a structured process Market is well understood Strategy aligns to this Page 4 BEEF Australia 2015 Common Attributes

Slide 5

WHAT IS AN INVESTMENT READY PROPOSITION (CONT) Understand the right type of investor to approach Documentation to back up the strategy / business plan Have the right experience Reporting and governance Page 5 Title Common Attributes

Slide 6

WHATS NOT INVESTMENT READY Private family businesses not prepared for investment Strategy not making sense Documentation not professional What's in it for the investor? No real understanding of the target investor Limited management experience Page 6 BEEF Australia 2015 Common examples

Slide 7

WHATS NOT INVESTMENT READY (CONT) Complex web of structures No financial governance or reporting Limited detailed business plan / strategy Often run the business to minimise tax rather than showing a profit Often large amount of debt limiting growth Page 7 BEEF Australia 2015 Common Problems Private businesses

Slide 8

HOW IT CAN BE DONE BETTER Engage with clients early Set a strategy Ensure market is understood and pool of investors identified Put in place governance and reporting Page 8 BEEF Australia 2015 What we are seeing

Slide 9

HOW IT CAN BE DONE BETTER (CONT) Market test the opportunity first to get feedback which you can then use to refine the product Make it clear and simple to understand - complex proposals make it difficult to sell Work within the village and share deals Page 9 Title What we are seeing

Slide 10

QUESTIONS. Page 10 BEEF Australia 2015 Thank you May 2015