Financial Opportunities in Consulting Indiana University Professional Opportunities

Financial Opportunities in Consulting Indiana University Professional Opportunities Orientation Program September 25, 2001 Presented by: Brian Oliver Laura Bissett Sarah Leinweber www. intecap. com

Introduction to Inte. Cap Ø Inte. Cap is the first consulting firm to launch an integrated practice dedicated to helping companies manage and extract value from their intellectual property Ø Thirteen offices with approximately 200 consultants with backgrounds in accounting, finance, and economics Ø Inte. Cap clients are leading corporations, law firms, high-tech start-ups, individual inventors, and providers of capital involved in “IP-rich” transactions. 1

Presenter Backgrounds Ø Brian Oliver, Managing Director ° ° ° Graduated with a B. S. in finance from Indiana University (1992) Started his career at Inte. Cap (formerly IPC Group) as an Analyst MBA from Northwestern’s Kellogg School of Management (1996) Worked in investment banking and private equity industries Rejoined Inte. Cap in 1999 Ø Laura Bissett, Analyst ° Graduated with a B. S. in finance and marketing from Miami University (2000) ° Joined Inte. Cap as an Analyst Ø Sarah Leinweber, Human Resources Manager ° Graduated with a B. B. A. in finance and marketing from University of Wisconsin-Madison (1997) ° Joined Inte. Cap as an Analyst ° After two years moved into the human resources department and is currently responsible for the firm’s national recruiting efforts 2

Introduction to Financial Consulting Ø Who are financial consultants? Ø What do financial consultants offer their clients? Ø In what types of projects are financial consultants engaged? Ø What are typical tasks performed during the course of an engagement? Ø Self-assessment Ø Financial consulting as a career platform 3

Who are Financial Consultants? Financial Services Litigation Support Investment Consulting Services Intellectual Asset Management 4

What do Financial Consultants Offer Their Clients? Ø Specialized expertise Ø Outsourcing/resources Ø Fresh perspective Ø Objective third party opinion Ø Quick turn-around Ø Focused attention Ø Structured solutions to unstructured problems Ø The “why” behind the numbers 5

In What Types of Projects are Financial Consultants Engaged? Litigation What the value should have been Valuation What the value is Strategy What the value could be 6

What are the Results/Deliverables of These Projects? Litigation Expert report, analysis, and testimony Written report, analysis, and Valuation presentation Written assessment, recommendation Strategy and implementation 7

Litigation Case Study As the Saying Goes… “Make a better mousetrap and the world will beat a path to your door. ” Ben Franklin 8

Litigation Case Study Patent Infringement Damages The Infringers The Patent Infringer 1 A Better = Mousetrap! Infringer 2 Infringer 3 What is the economic injury to the patent owner? Lost Sales Depressed Prices Opportunity Cost 9

Litigation Case Study The Role of an Analyst Ø Participate in team meetings to discuss overall approach to assignment Ø Review client documents Ø Perform industry research Ø Research and compare established royalty rates Ø Build financial models Ø Perform quality control Ø Create trial exhibits 10

Valuation Case Study Trademark Valuation for Tax Purposes Ø Retained by a global manufacturer of household appliances to perform a trademark portfolio valuation Total Enterprise Value 100% 56% Total Value of Intangibles 56% Other Intangibles Value 32% Fair Market Value 24% 11

Valuation Case Study The Role of an Analyst Ø Participate in brainstorming discussions with team members Ø Research comparable companies in the industry Ø Forecast cash flows and prepare a cost of capital analysis Ø Prepare a valuation report/narrative Ø Create graphical presentations of financial analysis 12

Strategy Case Study IP Portfolio Evaluation Client dilemma Consultant hired to evaluate strategic options License to others How can we extract value from our non-strategic technology? Sell outright Spin-out as new company Donate to a university 13

Strategy Case Study The Role of an Analyst Ø Conduct a search of all patents assigned to client using internal and external resources Ø Perform patent mapping analysis Ø Assess potential market opportunities to better understand the effects of commercialization Ø Perform a competitive technology assessment Ø Develop a licensing strategy, including a valuation analysis 14

Self-Assessment Would you Enjoy Being a Financial Consultant? Do you prefer. . . Ø Structured environment? Ø Unstructured environment? Ø Finance only? Ø Ø Concentrate in a single industry? Ø Finance, marketing, economics, accounting? Variety of industries? Ø Compartmentalized work? Ø Team work? Ø Functional work? Ø Project work? Ø Corporate culture? Ø Consulting culture? Other financial career Financial consultant 15

Consulting as a Career Platform Ø Various skills acquired as a financial consultant Ø CPA, CFA, MBA opportunities Ø Client contact and industry exposure Ø Foundation for many other careers 16

Consulting as a Career Platform Examples of Inte. Cap Careers Consulting: Managing Director, Inte. Cap Investment Banking: Managing Director, Bear Stearns Marketing: Brand Manager, Procter & Gamble Sales: Account Executive, Warner Lambert Graduate School: MBA - Kellogg, Chicago, UCLA, etc. Law - Michigan, UVA, Wisconsin, etc. 17

In Summary. . . Financial consultants provide: Clients with… Ø expertise and objectivity Ø creative solutions Ø clarity and structure Consultants with… Ø use and development of a wide range of skills Ø broad career platform 18