telecom mergers and acquisition s the vc angle n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Telecom Mergers and Acquisition s: The VC angle PowerPoint Presentation
Download Presentation
Telecom Mergers and Acquisition s: The VC angle

Loading in 2 Seconds...

play fullscreen
1 / 10

Telecom Mergers and Acquisition s: The VC angle - PowerPoint PPT Presentation


  • 307 Views
  • Uploaded on

Telecom Mergers and Acquisition s: The VC angle. Oren Zeev Apax Partners January 18 th , 2001. Agenda. About Apax Partners Why M&A? What are buyers looking for? Prepare your business Strategic Investor as a step to an M&A During the transaction.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Telecom Mergers and Acquisition s: The VC angle' - lotus


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
telecom mergers and acquisition s the vc angle

Telecom Mergers and Acquisitions:The VCangle

Oren Zeev

Apax Partners

January 18th, 2001

agenda
Agenda
  • About Apax Partners
  • Why M&A?
  • What are buyers looking for?
  • Prepare your business
  • Strategic Investor as a step to an M&A
  • During the transaction
apax partners telecom activities 25 years 7b 150 investment professionals 3 continents
Apax Partners: Telecom Activities25 years, $7B, 150 investment professionals, 3 continents
  • Butterfly (TI) Ceragon Networks
  • Coreteck (Nortell) EZChip
  • tdSoft Jazztel
  • Esprit Telecom (GTS) IPG Photonics
  • Dialog Semiconductor Webraska
  • Fore Systems (Marconi) TelDaFax
why m a
Why M&A?
  • Buyer’s perspective:
      • Buying a business
      • Integral part of R&D strategy
      • Seller’s perspective:
      • Exit
      • Liquidity – easier to lock in value
      • Selling products to telecom operators is extremely challenging
      • Leverage marketing, distribution, financial power, manufacturing and reputation
what are the buyers looking for
What Are The Buyers Looking For
  • Technology lead
  • Management and technical team
  • Market opportunity
  • Competitive opportunity/threat
  • Fit with buyer’s business/channels
  • Customer validation/momentum
  • Strategic Partners – could be a plus, could be

a liability

prepare your business
Prepare Your Business
  • Build it and manage it like a sustainable business
  • Fit with potential buyers’ customers and channels
  • Avoid aggressive vesting accelerations
  • Avoid problematic commercial agreements
  • - use assignment/termination clauses
  • Capital structure – take into account taxation and accounting considerations
  • Chief scientist – limit/avoid
  • Play hard to get – but don’t overdo it
  • Timing is everything!
strategic investor as a step to m a
Strategic Investor As A Step To M&A
  • Try to get a supportive, but not too dominant strategic investor:
  • Let a VC lead the round
  • Be ware of valuation “kiss of death”
  • Be extra careful in the commercial deal
  • Preferably 5%-15%
  • Option/ROFR/ROFN/ROFO
  • Observer/Director
  • Get 2-3 if you can
during the transaction
During The Transaction
  • Manage your shareholders consensus
  • Take care of your employees
  • Manage the process – don’t let your lawyers/accountants manage it
  • Get interest/offers from more than one – create a sense of urgency and competition
  • Keep your alternatives even after you have a term sheet
  • Focus only on the important issues
  • In stock deals registration rights are very important
  • Leave your ego at home
slide10

Oren Zeev

Apax Partners

Oren.zeev@apax.co.il