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