September 2010 P r i v a t e E q u I t y S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A LS T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L Contact: Ryan J. Shih ( 施君徽 ) Partner One Equity Partners 20F Chater House 8 Connaught Road Central Hong Kong

O E PO E P Private Equity Deals  What is a private equity deal?  Anatomy of a deal  Sourcing  Relationship building  Due diligence  Negotiations  Closing  Now the real fun begins…managing portfolio companies  Exit 1 Sourcing Phone Call or 12-months DD, Negotiations, Closing 3 to 6-months Portfolio Management/Exit 12-months to X-years

O E PO E P Private Equity Deals  Sourcing and Relationship building  Active  Ideas and cold calls o Macro trends, micro execution o Takes longer, balance urgency to deploy capital and management fees o Good ideas, bad ideas, stolen ideas  Reactive  Sit in your office and wait  Intermediaries and the roles of sellside, deal brokers, and others, plus what they charge…  Benefits: quicker and pre-packaged (scrubbed, presentable), and expanded network  Shopped around and paying full value in auctions  Relationship building  Not all about money… 1 Sourcing Phone Call or 12-months

O E PO E P Private Equity Deals  Doing the deal  DD  Negotiations  Closing  DD – business, financial, legal  Use of advisors and fees  Negotiations  Value add and leverage  War of attrition  Closing  Documentation, approvals, fund flows 1 DD, Negotiations, Closing 3 to 6-months

O E PO E P Private Equity Deals  Now the real fun begins…managing portfolio companies  Exits  Strategy setting  Actually the fun part…  Monitoring and board meetings, plus what relationship building means  Fire-fighting  Personnel changes, business changes, reacting to special situations  Internal portfolio management  Reports, reports, and more reports  Exits  Strategic trade sale (best of both – valuation and timeliness)  Sponsors (also good, but less value)  Public markets (IPO or secondary) – (can take time to fully exit)  When all else fails…recap (leakages and more) 1 Portfolio Management/Exit 12-months to X-years