robert ackerman 2010 ibf opening remarks

34
COMPETITIVE ADVANTAGE T H R O U G H A C T I V E CORPORATE PARTNERING TM I Woke Up and it Wasn I Woke Up and it Wasn t t A Nightmare After All A Nightmare After All www.allegiscapital.com Copyright 2010 © Allegis Capital 12 th Annual Corporate Venturing & Innovation Partnering Conference February 23, 2010 Conference Chairman Conference Chairman Robert R. Ackerman, Jr. Robert R. Ackerman, Jr. Managing Director Managing Director - - Allegis Capital Allegis Capital Opening Remarks Opening Remarks

Upload: adicksa

Post on 12-Jan-2015

493 views

Category:

Business


3 download

DESCRIPTION

Opening remarks at the 12th Annual Corporate Venturing & Innovation Partnering Conference. Presentation gives an overview of the 2009 and what 2010 has in store for Venture Capital Firms.

TRANSCRIPT

Page 1: Robert Ackerman 2010 Ibf Opening Remarks

C O M P E T I T I V E A D V A N T A G E T H R O U G H A C T I V E C O R P O R A T E P A R T N E R I N G T M

““I Woke Up and it WasnI Woke Up and it Wasn’’t t A Nightmare After AllA Nightmare After All””

www.allegiscapital.com Copyright 2010 © Allegis Capital

12th Annual Corporate Venturing & Innovation Partnering Conference

February 23, 2010

Conference ChairmanConference ChairmanRobert R. Ackerman, Jr.Robert R. Ackerman, Jr.Managing Director Managing Director -- Allegis CapitalAllegis Capital

Opening RemarksOpening Remarks

Page 2: Robert Ackerman 2010 Ibf Opening Remarks

2

2009 – It Started Bad…

The Capital Well Dried Up for Start-Ups$17.7 billion invested in 2,795 deals (1997 Level)$28.1B in 08’ and $30.5B in 07’When Capital did Flow – It Was Very Very Expensive

And the River was Damned for Venture Firms$15.2 billion committed to Venture Partnership

120 Funds Raised – 80% of them Established Players$28.5B in 08’ and $36.1B in 07’

Venture Reactions:Preserve Capital at All Costs (Life and Death)

Reserves for Existing Portfolio CompaniesTriage to free up Capital

Source: Dow Jones VentureOne/Ernst &Young

Copyright 2010 © Allegis Capital

Page 3: Robert Ackerman 2010 Ibf Opening Remarks

3

… And It Did Not Get Much Better

Thirteen (13) Venture-backed IPOs in 09’(6) in 08’ -- (86) in 07’ (Average Offering: $150M in 09’)1990-2000: 1776 IPOs: 56% of Exits2001-2009: 405 IPOs: 13% of Exits

M & A Barely Keeps Industry on Life Support262 Venture-backed exits in 09’ (348 in 2008)Median M & A Proceeds: $30MAverage M & A Deal Size: $144M

10 Year Venture Returns –The News Finally Hits

1999 “Peak Returns” about to drop from the 10-year avg.IRR 17.2% (3/31/08) IRR 19.3% (6/30/07)IRR 8.4% (9/30/09)

Venture Still Out Performed Most Investment IndexesSource: Dow Jones VentureOne/Ernst &Young

Copyright 2010 © Allegis Capital

Page 4: Robert Ackerman 2010 Ibf Opening Remarks

C O M P E T I T I V E A D V A N T A G E T H R O U G H A C T I V E C O R P O R A T E P A R T N E R I N G T M

4

Capital Capital Investments DropInvestments Drop

StartStart--Ups Just Got a Lot HarderUps Just Got a Lot Harder

Page 5: Robert Ackerman 2010 Ibf Opening Remarks

5PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters Copyright 2010 © Allegis Capital

MoneyTree Total Investments: 1980 – 2009

0.5 1.1 1.5 2.8 2.8 2.6 2.9 3.2 3.2 3.2 2.6 2.1 3.4 3.5 3.97.4

10.614.2

19.8

51.3

100.5

38.6

21 19.122 23

26.330.5

28

17.7

$0

$20

$40

$60

$80

$100

$120Annual Venture Capital Investments 1980 to 2009$ in Billions

Page 6: Robert Ackerman 2010 Ibf Opening Remarks

6

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1284 1221 1009 990 845 856 696 728 708 743 724 792 731 865 699 853 737 839 802 830 881 980 920 965 875 1063 1011 1078 1016 1064 995 910 632 680 689 794

Number of Deals by Quarter

MoneyTree Total Investments: Q1 2001 – Q4 2009$1

2.3

$6.5

$4.1

$5.2

$5.0

$6.3

$7.4 $7.7

$3.4

$10.7

$5.9

$4.8

$6.1

$6.3 $7

.1

$7.3

$7.4

$4.2

$7.9

$4.4 $4.7

$4.8

$5.9 $6

.6

$7.7

$7.1

$5.1

$7.7

$4.3

$5.5 $5.8

$5.8 $6.3

$8.0

$5.9

$5.0

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

2001 2002 2003 2004 2005 2006 2007 2008 2009

Q1 Q2 Q3 Q4$ in Billions

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

Copyright 2010 © Allegis Capital

Page 7: Robert Ackerman 2010 Ibf Opening Remarks

C O M P E T I T I V E A D V A N T A G E T H R O U G H A C T I V E C O R P O R A T E P A R T N E R I N G T M

7

Capital Inflows Capital Inflows Under StressUnder Stress

What Have You Done for What Have You Done for Me Lately?Me Lately?

Page 8: Robert Ackerman 2010 Ibf Opening Remarks

8

Venture Capital Fundraising

Year First Time Funds Follow-On Funds Total Number of Funds VC Raised ($M)

2004 63 155 218 19,154.4

2005 67 175 242 28,962.7

2006 56 186 242 31,964.9

2007 61 189 250 36,131.4

2008 49 174 223 28,571.3

2009 22 98 120 15,220.2

Data current as of January 11, 2010 Source: Thomson Reuters & National Venture Capital Association

Q1’ 08 12 12 12 12

Q2’ 08 22 22 22 22

Q3’ 08 14 14 14 14

Q4’ 08 11 11 11 11

Q1’ 09 4 4 4 4

Q2’ 09 8 8 8 8

Q3’ 09 7 7 7 7

Q4’ 09 7 7 7 7

Page 9: Robert Ackerman 2010 Ibf Opening Remarks

9

Other indices at September 30, 2009

DJIA 15.8 -7.4 -3.3 1.8 1.6 8.7 9.2

NASDAQ Composite 15.7 1.5 -2.0 2.3 -2.5 7.0 7.8

S&P 500 15.6 -6.9 -5.4 1.0 -0.2 7.6 8.0

US Venture Capital Index

For the Period Ending Qtr. 1

Year3

Years5

Years10

Years15

Years20

Years

September 30, 2009 2.3 -12.4 1.3 4.9 8.4 36.6 23.1

June 30, 2009 0.2 -17.1 1.3 5.7 14.3 36.3 22.7

September 30, 2008 -2.9 -0.9 10.2 10.7 40.2 33.3 22.2

(Investment Horizon Performance through 09/30/2009)

Source: Cambridge Associates LLCNote: Because the US Venture Capital index is cap weighted, the largest vintage years mainly drive the index’s performance.

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

Copyright 2010 © Allegis Capital

Page 10: Robert Ackerman 2010 Ibf Opening Remarks

C O M P E T I T I V E A D V A N T A G E T H R O U G H A C T I V E C O R P O R A T E P A R T N E R I N G T M

10

Where Are The $’s Going

Page 11: Robert Ackerman 2010 Ibf Opening Remarks

11

Investments by Industry: Full Year 2009

$36.1

$102.4

$172.2

$253.3

$300.5

$341.6

$362.0

$364.8

$558.8

$716.0

$771.6

$1,076.9

$1,177.0

$2,304.8

$2,502.3

$3,096.4

$3,543.3

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500

Other

Healthcare Services

Retailing/Distribution

Business Products and Services

Electronics/Instrumentation

Computers and Peripherals

Consumer Products and Services

Financial Services

Telecommunications

Networking and Equipment

Semiconductors

IT Services

Media and Entertainment

Industrial/Energy

Medical Devices and Equipment

Software

Biotechnology

Visit www.pwcmoneytree.com for Industry definitions

$ in Millions

Industry# of

Deals% Change $from 2008

Biotechnology 406 -18.57%Software 619 -39.83%Medical Devices and Equipment 309 -26.58%Industrial/Energy 232 -49.69%Media and Entertainment 251 -31.65%IT Services 203 -40.80%Semiconductors 118 -53.10%Networking and Equipment 93 -5.27%Telecommunications 140 -66.56%Financial Services 52 -27.16%Consumer Products and Services 81 -16.87%Computers and Peripherals 59 -25.37%Electronics/Instrumentation 60 -47.66%Business Products and Services 81 -47.63%Retailing/Distribution 31 -27.45%Healthcare Services 33 -43.94%Other 27 84.52%

2009 Total: $17,680.2 million in

2,795 deals

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

Visit www.pwcmoneytree.com for Industry definitions Copyright 2010 © Allegis Capital

Page 12: Robert Ackerman 2010 Ibf Opening Remarks

12

Investments by Industry –Quarterly Percent of Total U.S. Investments

18.6

9%

17.8

7%

10.7

9%

15.9

5%

7.16

%

19.0

4%

19.8

3%

14.3

4%

10.0

3%

6.50

%

23.1

7%

16.2

3%

15.7

8%

10.9

7%

3.06

%

18.0

2%

15.4

5%

12.5

2%

18.3

8%

7.65

%

20.1

8%

19.1

1%

14.3

4%

11.3

5%

8.75

%

0%

5%

10%

15%

20%

25%

30%

Biotechnology Software Medical Devices and Equipment

Industrial/Energy Media and Entertainment

(% of Total Dollars)

Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09

Top 5 Industries – Q4 ‘08 to Q4 ‘09

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

Copyright 2010 © Allegis Capital

Page 13: Robert Ackerman 2010 Ibf Opening Remarks

13

Investments by Stage of Development: FY 2009

$1,650.3

$4,626.8

$5,484.3

$5,918.9

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000

Startup/Seed

Early Stage

Expansion

Later Stage

Stage of Development

# of Deals

% Change in $ Amount from 2008

Later Stage 799 -44.45%Expansion Stage 801 -47.23%

Early Stage 883 -13.02%Startup/Seed 312 1.62%

Total 2,795 -36.84%

$ in Millions 2009 Total: $17,680.2 million in 2,795 deals

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

Copyright 2010 © Allegis Capital

Page 14: Robert Ackerman 2010 Ibf Opening Remarks

14

Investments by Sequence of Financing: FY 2009

$2,331.9

$2,594.2

$2,728.8

$3,350.3

$6,675.0

$0 $2,000 $4,000 $6,000 $8,000 $10,000

Fourth

Third

Second

First

5th and Beyond

2009 Total: $17,680.2 million in 2,795 deals$ in Millions

Financing# of

Deals

% Change in$ Amount from

Q3 20095th and Beyond 807 -26.77%

First 725 -44.64%Second 539 -47.37%

Third 414 -40.74%Fourth 310 -28.52%Total 2,795 --36.84%

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

Copyright 2010 © Allegis Capital

Page 15: Robert Ackerman 2010 Ibf Opening Remarks

15

First Sequence Financing – Number of Deals 38

4

224

176 19

6

237

275

264

333

159

327

236

183

252

253

334

372

333

168

273

183

184

224

262

321 330

289

168

235

188 21

7

259 28

3 299

365

262

230

0

100

200

300

400

500

2001 2002 2003 2004 2005 2006 2007 2008 2009

Q1 Q2 Q3 Q4

First Sequence Deals$ in Billions

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

Copyright 2010 © Allegis Capital

Page 16: Robert Ackerman 2010 Ibf Opening Remarks

16

First Sequence Financing – Investment Amount $2

.7

$1.2

$0.7 $1

.0

$1.4

$1.4 $1

.6 $1.8

$0.7

$1.9

$1.2

$1.0 $1

.3 $1.5 $1

.7

$1.7

$1.6

$0.8

$1.2

$1.0

$1.0 $1

.2 $1.5 $1

.6 $1.9

$1.5

$0.7

$1.2

$0.8 $1

.1 $1.2 $1

.4 $1.5

$2.1

$1.2

$1.1

$0

$1

$2

$3

$4

2001 2002 2003 2004 2005 2006 2007 2008 2009

Q1 Q2 Q3 Q4

First Sequence Investments$ in Billions

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

Copyright 2010 © Allegis Capital

Page 17: Robert Ackerman 2010 Ibf Opening Remarks

17

Stage of Development –Quarterly Percent of Total First Sequence Dollars

19.7

7%

42.7

5%

21.6

3%

15.8

6%19.1

0%

42.6

0%

18.9

5%

19.3

5%

48.7

6%

26.8

8%

19.2

9%

5.07

%

21.8

4%

36.5

0%

19.9

5%

21.7

0%

19.5

7%

45.2

0%

21.3

5%

13.8

7%

0%

10%

20%

30%

40%

50%

60%

Startup/Seed Early Stage Expansion Later Stage

Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09

(% of first sequence dollars)

Stage Development – Q4 2008 to Q4 2009

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

Copyright 2010 © Allegis Capital

Page 18: Robert Ackerman 2010 Ibf Opening Remarks

18

Stage of Development –Quarterly Percent of Total First Sequence Deals

27.1

0%

44.6

6%

16.4

1%

11.8

3%

26.4

2%

45.2

8%

14.4

7%

13.8

4%

30.9

5%

43.4

5%

17.8

6%

7.74

%

24.4

0%

45.8

3%

19.6

4%

10.1

2%

23.9

1%

51.3

0%

17.3

9%

7.39

%

0%

10%

20%

30%

40%

50%

60%

Startup/Seed Early Stage Expansion Later Stage

Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09

Stage Development – Q4 2008 to Q4 2009(% of first sequence deals)

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

Copyright 2010 © Allegis Capital

Page 19: Robert Ackerman 2010 Ibf Opening Remarks

C O M P E T I T I V E A D V A N T A G E T H R O U G H A C T I V E C O R P O R A T E P A R T N E R I N G T M

19

Where’s The Action

Silicon Valley Dominates, but…

Page 20: Robert Ackerman 2010 Ibf Opening Remarks

20

HAWAII

MAUI

KAHOOLAWE

LANAI

MOLOKAI

OAHU

KAUAI

NIIHAU

Investments by Region: Full Year 2009

Texas$644.6 M111 Deals

4% of US total

Silicon Valley$6,983.9 M863 Deals

40% of US total

New England$2,113.4 M348 Deals

12% of US total

Midwest$721.1 M219 Deals

4% of US total

South Central$23.8 M37 Deals

0% of US total

Northwest$704.8 M132Deals

4% of US totalSacramento/N. CA$17.0 M8 Deals

0% of US total

San Diego$903.2 M107 Deals

5% of US total

Southeast$985.9 M137 Deals

6% of US total

Southwest$313.8 M68 Deals

2% of US total

LA/Orange County$953.7 M159 Deals

5% of US total

DC/Metroplex$539.6 M117 Deals

3% of US total

NY Metro$1,415.9 M247 Deals

8% of US total

Philadelphia Metro$423.8 M89 Deals

2% of US total

North Central$368.9M58 Deals

2% of US total

2009 Total Investments - $17,680.2 million in 2,795 deals

Colorado$528.8 M71 Deals

3% of US total

AK/HI/PR$7.1 M2 Deals

0% of US total

Upstate NY$18.0 M13 Deals

0% of US total

Unknown region totals not included PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

Copyright 2010 © Allegis Capital

Page 21: Robert Ackerman 2010 Ibf Opening Remarks

21

Investments by Region: Full Year 2009

Unknown region totals not included

Region# of

Deals% Change $ from 2008

Silicon Valley 863 -34.90%New England 348 -36.09%

NY Metro 247 -28.32%Southeast 137 -19.13%

LA/Orange County 159 -52.54%San Diego 107 -24.21%Midwest 219 -43.60%

Northwest 132 -34.52%Texas 111 -49.94%

DC/Metroplex 117 -45.20%Colorado 71 -36.84%

Philadelphia Metro 89 -43.78%North Central 58 -40.30%

SouthWest 68 -32.71%South Central 37 -69.76%

Upstate NY 13 -80.07%Sacramento/N. Cal 8 -75.33%

AK/HI/PR 2 -66.22%Total 2,795 -36.84%

2009 Total: $17,680.2 million in

2,795 deals

$ in Millions

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

Copyright 2010 © Allegis Capital

Page 22: Robert Ackerman 2010 Ibf Opening Remarks

22

Investments by Region –Quarterly Percent of Total U.S. Investments

34.7

2%

13.6

3%

7.92

%

3.37

%

5.31

%

38.5

3%

12.9

4%

12.2

2%

2.71

% 6.87

%

33.7

1%

11.7

1%

6.62

%

6.05

%

4.43

%

46.0

4%

10.8

1%

5.08

%

5.08

%

4.86

%

38.3

1%

12.6

5%

9.29

%

5.98

%

5.74

%

0%

10%

20%

30%

40%

50%

Silicon Valley New England NY Metro San Diego LA/Orange County

Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09

Top U.S. Regions Q4 ‘08– Q4 ‘09

PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters

Copyright 2010 © Allegis Capital

Page 23: Robert Ackerman 2010 Ibf Opening Remarks

C O M P E T I T I V E A D V A N T A G E T H R O U G H A C T I V E C O R P O R A T E P A R T N E R I N G T M

23

Heading For The Heading For The ““ExitsExits””

No way OutNo way Out

Page 24: Robert Ackerman 2010 Ibf Opening Remarks

24

Venture Capital Fundraising

Date Number of IPOs*

Total Venture-Backed Offering

Amount ($M)

Average Venture-Backed Offering

Amount ($M)

Total Number of Venture-backed

M&A DealsAverage M&A

Deal Size ($M)**

2005 57 4,485.0 78.7 350 105.7

2006 57 5,117.1 89.8 375 116.0

2007 86 10,326.3 120.1 378 175.5

2008 Q1 5 282.7 56.6 108 116.3

2008 Q2 0 0.0 0.0 87 123.0

2008 Q3 1 187.5 187.5 89 96.3

2008 Q4 0 0.0 0.0 64 132.8

2008 6 470.2 78.4 348 114.9

2009 Q1 0 0.0 0.0 63 46.9

2009 Q2 5 720.7 144.1 64 197.7

2009 Q3 3 572.1 190.7 68 57.4

2009 Q4 5 649.3 129.9 67 215.9

2009 13 1,942.1 149.4 262 144.2

* Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile**Only accounts for deals with disclosed valuesSource: Thomson Reuters and National Venture Capital Association Copyright 2010 © Allegis Capital

Page 25: Robert Ackerman 2010 Ibf Opening Remarks

C O M P E T I T I V E A D V A N T A G E T H R O U G H A C T I V E C O R P O R A T E P A R T N E R I N G T M

25

So, What’s It All Mean…

Page 26: Robert Ackerman 2010 Ibf Opening Remarks

26

Summary

Significant Reduction in the Availability of Venture CapitalStart-Ups (Series A) will need to be “perfect”Valuation based upon the Net Present Value of an Identified Exit PathSmaller Funds become COOL again (tied to M & A exits)Partnering is back in vogue

Start-Ups Need to Rethink their Capitalization PlansCapital Efficiency is the Watch WordCost of Failure is TerminalNeed to Rethink Distribution, Manufacturing, Go To Market PlansLeverage Leverage Leverage

Venture Industry Emergence of New Industry Leaders in tune with timesIt remains tough until the returns are back

Corporation Investors are well Positioned to “Bridge the Gap”

Page 27: Robert Ackerman 2010 Ibf Opening Remarks

C O M P E T I T I V E A D V A N T A G E T H R O U G H A C T I V E C O R P O R A T E P A R T N E R I N G T M

27

Looking Forward….

Page 28: Robert Ackerman 2010 Ibf Opening Remarks

28

The VC Environment…The VC Industry

In for a Period of Significant Recalibration & Restructuring (3-4 Years)Successful firms will focus on “old fashioned VC” or become Asset ManagersMaterial reduction in the number of venture firms (30-50%?)When all is Said and Done – A Healthier Environment

For Start-Up CompaniesInnovation is Alive and Well but the Bar for Funding is a Lot HigherPartnerships become Increasing ImperativeBetter Ideas, Stronger Teams, Greater Discipline will get Funded

IronPort was started in 2001 and Funded by Allegis 2002: Cisco purchased in 2007 for $830M

Indicators are for a Period of Greater Return and SuccessCorporate Venture Investors

Competition continues to AccelerateStart-Up Companies are More Likely than Ever to Seek Corporate PartnershipsSplit Personality – Past Failures versus Future ImperativesTime to Re-Visit PARTNERING with the Experienced Venture Firms (LEVERAGE)

The Window is Wide Open for Corporate Investors

Page 29: Robert Ackerman 2010 Ibf Opening Remarks

29

Planning for Success

Looking to Exits – Assume there are NO IPOsYou have no visibility into the next IPO market

You have even less control or influenceM & A remains a viable path to Liquidity – IF YOU ARE CREATING VALUE

Corporate M & AEmergence of the Private Equity Buyer

Control the Fundamentals for Profitable ExitsSolve “Real” ProblemsWatch Your Cost BasisCapital Efficiency is Critical

Syndicates are EssentialGreat Companies don’t Fail – they run out of CASHPreemptively Recapitalize When Necessary or the Opportunity Presents ItselfStrong Syndicates are CRITICAL – Not all Co-Investors are Equal

Page 30: Robert Ackerman 2010 Ibf Opening Remarks

C O M P E T I T I V E A D V A N T A G E T H R O U G H A C T I V E C O R P O R A T E P A R T N E R I N G T M

30

Profiting from Turmoil…

Page 31: Robert Ackerman 2010 Ibf Opening Remarks

31

The Allegis Playbook…

Exploit the Market Downturn with Established Companies

Take Advantage of Financing Difficulties for Quality CompaniesProvide Capital when others Can’tNearer term exits

Actively Maintain Seed & Early-Stage Investment Focus Create “Value” from “Ideas”Control the Fundamentals for Profitable M & A exitsGreatest leverage to generate returnsSyndicate

Leverage Corporate PartnershipsLower “GO TO MARKET” risks/costsInfrastructure to Accelerate Growth as Economies Stabilize

Page 32: Robert Ackerman 2010 Ibf Opening Remarks

32

The Allegis Playbook…

Get Ahead of the Financing Crisis“Time is not your Friend”Pro-actively re-capitalize companies to strengthen syndicates“Interim” Valuations are just that - INTERIM

Anticipate the Market Recovery –Don’t Wait for It

What sectors remain strong (Security)Where can we improve efficiency in an existing market (Supply Chain)Where can we create value in a Down Economy“Is Now the Time to Start this Company”?

Pick Your Partners very CarefullyFirms and Partners are going to Disappear

Page 33: Robert Ackerman 2010 Ibf Opening Remarks

C O M P E T I T I V E A D V A N T A G E T H R O U G H A C T I V E C O R P O R A T E P A R T N E R I N G T M

35

It’s a Great Time to Build a Portfolio!

Page 34: Robert Ackerman 2010 Ibf Opening Remarks

C O M P E T I T I V E A D V A N T A G E T H R O U G H A C T I V E C O R P O R A T E P A R T N E R I N G T M

Have a Great Conference

Conference ChairmanConference ChairmanRobert R. Ackerman, Jr.Robert R. Ackerman, Jr.Managing Director Managing Director -- Allegis CapitalAllegis Capital

www.allegiscapital.com