BVInt.Exec.Presentation4

EXECUTIVE SUMMARY www.businessvaluationintl.com

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http://www.businessvaluationintl.com/

Valuation | Risk Assessment | Strategic Valuation

www.businessvaluationintl.com

BVInt provides Advanced Strategic Valuation Services worldwide for small to mid-size companies and start-ups.Founded in London by a team of Valuation experts coming from Private Equity, Investment Banking and/or Top TierConsultancy firms and with more than 20 years in the profession.

Today, BVInt has clients and partners in more than 30 countries and our international experience combined withour regional presence gives us a global view of the local industry.

HQ

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ABOUT US

Valuation | Risk Assessment | Strategic Valuation


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Macro Economy Analysis

Market and Sector Study

Strategic Analysis

Company Analysis

Technology, Operations, Costs

FinancialsSales, Marketing,

ManagementImpact

Risk Mapping and Assessment

Forecasts, FCF, Business plan

External Variables

Internal Variables

Assessment

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Value at Risk

Output

(1) Stochastic or random process is a probability model used to describe business phenomena that evolve over time. More specifically, in probability theory, a stochastic process is a time sequence representingthe evolution of business variables / drivers whose change is subject to a random variation (unpredictable and without a stable pattern or order). Most businesses and open economies are stochastic systemsbecause their internal environments are affected by random events in the external environment. Such situations need to be measured using probabilities, volatilities and standard deviations according to theprofile of each variable under assessment. On the contrary, traditional valuations are static (or non-stochastic) and therefore they are far from reflecting reality and not able to show the business flow.

BVInt’s Innovative Approach: Advanced Valuations with stochastic risk assessments based on macro economy, market, strategy,technology, operative and financial drivers (as shown in the figure below).

Our Process: Identify both external and internal risk-value drivers and assess them using advanced probabilistic analysis.

BVInt’s Stochastic Model⁽¹⁾: Risk-value variables are subject to volatility driven by both history and strategic studies.

Systematic and not Systematic Risk: Using Risk Palisade (Monte Carlo Simulations), we are not only able to measure unsystematic ordiversifiable risks (represented by WACC and beta) but also non-diversifiable risks (systematic risk) involved in the business. In this way,we are able to show the probable flow of the business detailing the impact of each driver

OUR PRODUCTS


• Investors: Our Valuation Service is for investors (private equity, strategic investors, private investors, family offices, M&Aagencies, etc.), looking for an independent valuation and advice in assessing future strategies and risks.

• Owners/Companies looking for Investors: Our valuation service and professional advice are the key elements to approach aprofessional investor and capture his attention.

• SMEs, CEOs, CFOs: The best-managed organisations increasingly recognise that information is the most valuable strategicasset. BVInt provides the information and value creation plan by identifying market and strategic opportunities.

• Turnarround / Insolvency: The process of recovery and investment in a turnaround is based on the assessment of thesituation in terms of markets, competitors, strategy, risk and value. As consequences of all this studies a value creation plan isdefined to rescue the company and present it to potential investors.

• Green Impact Projects: We have a strong focus on social and environmental impact investments. Our valuations provide theassessment of the impact.

THE PROFILE OF OUR CLIENTS

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1. Indentify and assess all value and risk drivers including business growth strategies,

2. Build a “Cause & Effect” risk-value map flow,

3. We use special programs (Palisade Risk 6 and Monte Carlo simulations) to simulate specific business phenomena:Probabilities, Volatilities, etc.

4. Our databases per region and industry sector, enable us to find the best comparable, study competitors and other forcespresent in the market, Our HQ in London uses databases including:

• Market and industry statistics and trends• Data and strategy of the main players per industry/region• M&A transactions and valuation data per industry/region• Macro economic risks and trend statistics

5. We use all valuation methodologies including our innovative DCF at Risk

HOW WE WORK

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• Private Equity

• Impact Investment

• Energy

• Biotechnology

• Healthcare

• Food and Beverage

• Pharmaceutical Industry

• Hospitality

• Mining

• Real Estate

• Industrial

• IT and Software

• High Technological Sectors

• Luxury Goods

• FMCG and Retail

OUR MAIN SECTORS

Climate change and unemployment have became one of our priorities. Our focuson this sector is increasing every day. In our valuations “Environmental and SocialImpact” is an additional dimension to the traditional ones, risk and return. Ourexperts have developed new and complementary valuation methodologies toapproach the tree dimensions of this sector according to investors appetite.

OUR GREEN DIVISION

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The 3 Dimensions of Impact Investment Projects

Return Risk Impact

DCF / CAPM Financial Value / Risk-Return Trade-off

Economic Value / The New Efficient FrontierRisk-Return-Impact Trade-off


By your side, every step of the way“we will not simply offer our valuation services in a report and expect you to enact them. We will be at your side, offering expert guidance to be able to implement your strategic plan to boost the value of your company. We don’t want to be only your consultants but also your partners with the same goals”

We provide different types of Webinars and Demos:

• Valuation and Risk Webinars

• Demos showing how we work including cases

• Demo showing our systems and tools

WEBINARS AND DEMOS

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ADVANCED STANDARD VALUATION

For Investors looking for an independent valuation including the future potential of the company. It is also for businessescommitted to protect and create value:

I. We identify and assess value-risk drivers affecting the company / project,

II. We prepare a risk-value map and help you to define the best communication approach for potential investors,

III. As an output of the previous steps we elaborate a realistic and detailed forecast.

IV. Risk-return trade-off assessment: (Is the company underperforming? Why?)

V. We work on a value creation plan and presentation,

VI. We assess the fair value of the company but at same time we make sure that the full potential of the company is welldemonstrated in the presentation,

VII. We deliver a complete Valuation Report with our remarks and recommendations.

VIII. Meetings are held by video conference with HQ and/or with the Regional Partner.

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Income Approach

Our DCF at Risk Methodology allows

to Include:

Risk Models simulating market

forces and business phenomena showing their probable flow;

Volatility and deviation of main risk-value drivers;

factors driving the value detailed by

level of importance.

Allows to explicitly model return and

operating assumptions

Market Approach

With the use of our Databases we can always find good comparables in

terms of sector, size and region

However, this methods present

some problems and we only use it as reasonableness

check for Income approach results

Asset Approach

Adjust Book Value

Liquidation Value

Also used to value GP or Holding entities in

the investment company structure

that are not allocated fee income such as (carried interests)

Option Pricing Models

It assesses the best time to undertake certain business

initiatives, such as deferring,

abandoning, expanding, staging, or contracting a capital investment project.

This technique is very common when one

value driver has a high level of volatility

through time.


THE MORE YOU SEE THE MORE YOU EARN

ADVANCED STRATEGIC VALUATION

For Investors and Companies needing to identify opportunities and have a deeper analysis of the future potential of thecompany. We will tell you where you are and why and where you could be and how:

I. Analysis: Macroeconomic Factors, Market, Industry, Financials, Strategy , Competitors, Internal Operations, Technology, etc,

II. Product and industry trends,

III. Performance benchmarking using our Industry databases,

IV. Identify and assess all specific risk-value drivers,

V. Risk-return trade-off assessment: (Is the company underperforming? Why?),

VI. Elaboration of risk-value mapping with value creation plan,

VII. Forecasts and value assessment showing present value, restructuring opportunity value, financial opportunity value, strategicopportunity value and synergic value,

VIII. Recommendations for future strategy,

IX. We work together side by side in defining a business plan,

X. As a consequence, we deliver a 360° strategic valuation report covering all business internal and external variables.

XI. Intense interaction with the client. Meetings are held via video conference with HQ and/or Regional Partners, or our HQ specialist might travel to the location.

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IMPACT INVESTMENT

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We assess “Environmental and Social Impact” as an extra dimension to the traditional ones, risk and return: We assess the value and the risk ofthe Impact by identifying and measuring all the drivers involved like reductions in the CO₂ missions, Labour increase and many others. We arecommitted to measure and report the social and environmental performance, ensuring transparency and accountability while informing thepractice of impact investing and building the field. Our valuations includes some of the following components of impact measurement:

- Establishing and stating social and environmental objectives to relevant stakeholders,- Setting performance metrics and targets related to these objectives, using standardized metrics wherever possible,- Monitoring and managing the performance of investees against these targets ,- Reporting on social and environmental performance to relevant stakeholders,

Impact and Value are not separated entities and we also assess impact as a mean to identify business opportunities and increase financialreturns. Since social and environmental performance is often linked to other aspects of business performance, measuring such performance canbe quite useful for identifying areas in which to strengthen investee business strategy and operations.

Farm

Valuation Keys:

The potential impact and financial return of a property are evaluated alongside information about water rights, land improvements targeted, and existing environmental hazards.

Data Used:

• Acres converting from non-organic to organic

• Acres sustainably managed

• Acres of wetlands and ponds restored

• Acres and properties put under permanent protection

Metrics:

• Land Directly Controlled: Sustainably Managed (OI6912)

• Length of Streams Restored (PI6885)

• Protected Land Area: Permanent (PI3924)

• Gas Reduction due to Products Sold (PI5376)

Energy

Valuation Keys:

We primarily targets seed-stage investments for which impact projections are difficult to accurately develop. However, as investees mature, We work with them to think through their impact objectives and appropriate targets

Data Used:

• Jobs created

• Lives impacted

• Carbon reductions

• Net metric tons of CO₂ emissions stored

Metrics:

• Gas Reduction due to Products Sold (PI5376)

• Permanent Employees: Total (OI8869)

• Temporary Employees (OI9028)

• People moved off unemployment

Financial Services

Valuation Keys:

We set social performance goals with each borrower. During the due diligence phase, we review the business strategy and operations to evaluate capacity to deliver according to goals and social mission.

Data Used:

• Clients by product

• Segmented client data

• Jobs created

• Smart Campaign certification

• Adoption of conflict of interest policy

• Renewable energy use

Metrics:

• Clients: Total (PI4060)

• Clients Poor (PI3193)

• Jobs Created: Total (PI3687)

• Operational Certifications (OI1120)

• Conflict of Interest Policy (OI2596)

Biotech and Healthcare

Valuation Keys:

We focus on investments directed at improving the quality of life of both the patient and the doctor. Our key value is the respect of the human nature.

Data Used:

• Client satisfaction

• Patient quality of life

• Tons of waste diverted from landfills

• Students enrolled

• Ethics Courses

Metrics:

• Client Feedback System (OI5049)

• Waste Reduced (OI7920)

• School Enrolment: Total (PI2389)

• Client Individuals: Total (PI4060)

Samples per Sector


I. We help you to identify the right investor/partner and we support you in the whole process of approaching and presentation.

II. Customized Valuation Courses and Coaching

I. Contact with Strategic Investors or Financial Investor (more than 5,000 investors).

II. Company Internationalization: Go Beyond your Borders!.

III. Interim Management.

IV. Many other financial services: Debt (short term, long term, bonds, etc) MBO, LBO, IPO and BIMBO operations. Generation Change, Turnarround, Growth Capital Management, Private Equity Experts, Family Offices, etc.

V. International tax advisors

OUR JV PARTNERS COMPLEMENT OUR WORK WITH THE FOLLOWING SERVICES

I. We follow up and monitor the value creation plan.

FOLLOW UP SERVICE

ADDITIONAL SERVICES

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Independence

Information: Unique Market, Industry and Financial Database.

Experience: Specialists with more than 20 years in the profession and more than 500 valuations

Global with Local Presence

Convenient Fees & Best Value: Our plain structure aims to be flexible according to size & region

The most experienced and equipped provider of strategic valuations and advisory services

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Focus: We are all committed professionals fully dedicated to this discipline

360° Service: Through our JV partners we can help you to reach potential investors

Innovative Advanced Approach: We add more value than traditional valuations

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WHY US?

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Energy (Latam)

Fertilizers (Latam)

Healthcare (UK)

Healthcare (Italy)

Energy (UK)

Wine & Beverages (Italy)

Biotech (Italy)

Pharmaceuticals (Latam)

Boutique Hotel (Italy)

Clean Energy (India)

Food (Italy)

Private Equity (EU) -Portfolio Companies

Private Equity Consulting (UK)

Biotech (USA)

Clean Energy (Italy)– Start up

Private Equity (EU) -Portfolio Companies

SOME OF OUR CLIENTS

Luxury Five Star Hotel (Latam)

Agro Tech (Africa)

Space Tech: France, USA

Software (USA)

Real Estate (Latam)

Biotech / Biopesticide (China)

Distillery (Latam)

Lithium Mine (Latam)

Clean Energy (USA)

Investment Bank(Bahamas)

Mining GroupSwitzerland

Asset ManagementSwitzerland

Mining GroupChina

Digital Marketing (UK)

Satellite BroadbandMVNO (Latam)

Oil (Russia)

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SOME RECENT TESTIMONIALS

Kirsty Barany – GibsonOwner at RxGenesys StemCell Technologies & Xpand Consulting Group“As an entrepreneur one of the toughest things to do is finding truly capable people that thrive on excellence. I can’t take credit for finding Mr Scarpati, he was hired by a group to evaluate our company for a significant investment. Through my career I’ve hired professionals to generate Valuations for my businesses, but I have NEVER seen a job so professional, detail oriented and especially unbiased, which in a serious valuation is PARAMOUNT. I rarely recommend people, but I would definitely recommend Mr Scarpati and his company BVInt”

Hans EnsingOwner and CEO at Villa Loggio Winery and Boutique Hotel“We hired Fernando Scarpati and his team not only for a valuation but also to review our strategy. Within weeks we had an updated value creation plan and financial / strategic compass to guide the company through heavy weather. Fernando is a great strategic thinker, hands-on, fast and sharp in his analysis but most of all a good company to work with”

Felix RaccaOwner at AuthenWare and Paladin Ventures Corp.Mr. Scarpati and his team is the guarantee of success of any project. If it was hard, call Fernando! He was also a great guy, easygoing, easy to get along with and at the same time, he pulled no punches!

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Fernando Scarpati

Founder and Managing Partner

Fernando holds a PhD in Valuation and Risk and has more

than 25 years in the Private Equity Sector with more than 200

valuations worldwide. He started his career in Andersen

Consulting continuing with an impressive experience as

Investment Director and Financial Service Director in

important groups and PEs. He also holds an MBA,, an

Industrial Engineer degree and Bachelor’s degree in

Economics and Business. He wrote many international

articles in top financial journals and he is part-time professor

at the Roehampton Business School and Politecnico of Milan

regularly interviewed by the Swiss Financial TV. He speaks

fluent English, German, Italian and Spanish.

OUR TEAM AND SR. PARTNERS

Walter Fonseca

Co-Founder and Senior Partner

Walter has more than 25 years of experience in Valuation,

Risk, Private Equity, M&A and Venture Capital. He founded

RecipRock Investments, an Investments boutique specialising

in fund-raising and strategic acquisitions for selected Family

Offices and conscious investors. He also founded Phimpact,

an Impact Investment Fund focused on emerging markets. He

led more than 20 successful acquisitions, 19 M&A deals, and

more than 10 Venture Capital investments, leading personally

more than 10 successful exits mainly to strategic buyers. Prior

to his entrepreneurial life, he developed his career at Merrill

Lynch, ABN AMRO and Citicorp. Walter speaks fluent English,

French and Spanish.

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OUR HQ SR. PARTNERS

Oliver Steiner

Senior Partner

Prior to becoming senior Partner at BVInt, Oliver developed

his career at the BNP Paribas. As Vice President (in

Switzerland and Latam), he was responsible of several M&A

transactions of various sizes and sectors, such as

Telecommunications, Industry, Financial Institutions, Mining,

Energy, Agribusiness, and Transportation. Conducted the

Audit Committee of a major state-controlled Brazilian bank

in the context of the potential acquisition of banking

agencies networks in 4 countries (US$ 500m+). Led and

coordinated the valuation team for many important

companies. He also holds an MBA from HEC Paris. He

speaks fluent English, French, Portuguese and Spanish.

Michael Rees

Senior Partner

Michael holds a PhD in Math modeling. He has more

that 25 years experience in Valuation and Risk and

focuses on providing quantitative support (consulting &

training) to mid- and senior-level management faced

with major decisions of strategic, economic or

investment nature. Author of 2 books and many

articles, he is considered an authority in Risk and

Valuation. Former Vice President at JP Morgan and

Principal at Mercer Management Consulting and

Oliver Wyman. He also holds an MBA from INSEAD

and a BA from Oxford. He speaks fluent English,

French and German.

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OUR HQ SR. PARTNERS

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Wilson Ng

Non Executive Partner & Member of the Board

Wilson holds a PhD and he is Professor in

Entrepreneurship and Innovation Studies at the University

of Roehampton, London. He explores innovation in

bioscience ventures in the EU and China. Wilson consults

for a Euronext-quoted private equity firm in the strategic

development of the firm’s investment portfolio. He teaches

courses in managing entrepreneurship and innovation.

Prior to his academic career he was a director in

investment banking in the UK and Southeast Asia. Wilson

is a member of the University Senate and sits on research

boards at university levels. Fluent English, Mandarin,

Cantonese, Malaysian, German, French and Italian.

Arie Slottje

Senior Partner

Arie holds a PhD in Qualitative Risk, Compliance and

Governance, He has more than 20 years as a

consultant in the financial service sector (funds, banks

and life-insurances). Arie is also a business strategy

specialist and advised hundreds of firms. He was also

engaged by the EU Commission as Responsible of

International IT projects focussed on data exchange. He

also holds an MBA and Bachelor’s degree in General

Management, HR and Law. Part-time lecturer in an

International business school. He wrote many articles

and appears regularly as a guest speaker.. He speaks

fluent English and Dutch.


OUR HQ SR. PARTNERS

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Carlo Mack

Senior Partner

Carlo developed his career as a Corporate Lawyer in London,

Padova and Munich creating an impressive business origination

network worldwide in different sectors. With relevant contacts in

most significant entrepreneurial families, banks and financial

groups, academic leaders and political authorities. Former White

& Case partner specialising in financial restructuring and financial

services. As President of the European chapter of the International

Insolvency Institute, he had a relevant role in the development of

financial mechanisms aimed at preserving companies’ lives and

growth. He became an influential player in front of entrepreneurs,

institutional investors, union leaders, and community authorities.

He speaks fluent English, German, Italian and Spanish.

Geellis Winkel

Senior Partner

Geellis holds a PhD in Strategic Change Management. He is an

expert in Business Strategy and from an independent position

he supports organizations in the field of business

transformation and innovation by means of Interim Executive

Change Management & Strategic Advisory. He has more than

25 years of experience at various positions within the field of

management, where he has been engaged in strategic change

initiatives such as mergers & acquisitions, post-merger

integration, privatization, strategic alliances, repositioning,

internationalization, diversification, restructuring, Information

System and Technology Implementations. He also holds an

executive MBA and a diploma in senior general management

next to a Bachelor of Education. He is trilingual in English,

German and Dutch.


[email protected]+44 (0) 7443 758262

5 minutes from Heathrow Airport. Perfect location for an International Business

Registered OfficeBentinck House

Bentinck Road - West DraytonMiddlesex – London

UB7 7RQ

BVInt

Crown House,72 Hammersmith Road,

Hammersmith,London,W14 8TH

Only 15 min from Westminster

BVInt

OUR HQ IN LONDON

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mailto:[email protected]

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BVInt.Exec.Presentation4

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