1. Providing support to the SME sector
CAVENDISH MANAGEMENT RESOURCES

2. Essential Business Support
Established reputation for delivering professional support where and when it is needed
Concentration on SMEs (Small and Medium sized Enterprises) and Public Sector
Key activities include
Funding
Consulting and interim management
Technology licensing
Company Sales & MBI
Mergers and Acquisitions (M&A)
Corporate Recovery
CMR’s original investor based was established in 1984 as the Chiltern Investment Group – this has since been augmented by many private investors and institutional investors from many parts of the world.

3. Which of our services may benefit you?
First the business analysis …

4. Where are you now – key issues?
is your company growing to your satisfaction?
has your company maximised its current market potential?
does your company have a real competitive advantage?
do you lack critical mass?
are you striving for survival?
is your company suffering a cash flow crisis?
are you looking for funding?
or are you preparing for retirement?

5. The Challenge – a huge variety of business situations
We make the big picture fit
International Technology Licensing
Management
Buy-out
Equity funding
Interim
Management
Business Lifeline
Catalyst Groups
CMR brings together all the parts of the jigsaw that are needed for your business situation.
Company
Sale
Management
Buy-in
FundEX™
BIMBO

6. succeeds through the calibre of our Business Professionals
director/senior management level
successful directors of large businesses
highly skilled from a wide diversity of disciplines
with great integrity, insight and impressive experience
highly aware of your bottom-line implications
CMR’s members are all senior, director level people
They are not theoretical consultants – they have all been leading at the front edge
Collectively they have all been there before – faced the same problems/challenges as you
They know the answers!
Collectively they come from every discipline and industry – so CMR has the relevant experts for all situations
They are professional people and can give impartial and incisive advice
They know that no company wants to waste money on ineffectual consultants – their advice will always pay for itself many times over!

7. We are special … Why? Our strength in the marketplace
the management skills and experience
of our executive network
the wealth of our investor base
Our power is the ability to help businesses –
preparing and presenting the company
to its best advantage with fresh but
proven management concepts
CMR is quite unique because the skills of our executives are combined with our investors, and our expert teams dealing with the specialist and complex special services we provide. It is that depth of knowledge and expertise that allows CMR to help and advise in virtually every area of business. Furthermore, we not only advise – we can also make it happen.

8. The network is a resource you can trust
We have selectively recruited like-minded people
possessing an "outside-to-in" objective perspective
experienced and trained in recognising our clients’ strengths and weaknesses
We are an external resource
with broad experience and the ability to rapidly
“get under the skin” of a business
with a fresh perspective on your company
with a non-political agenda for unbiased advice
We only allow into CMR those executives that have the high level of experience and skill we demand.
Because of that experience they are not only able to assess the company’s situation quickly and accurately, but also come to the business with a ‘new pair of eyes’ that can often see things that are not always clearly visible to those at the coalface. Also of course, we are unaffected by any past history or political influences there may be – we can see things objectively.

9. How can you use our Business Professionals?
for an initial 'snapshot' to help you deal with a current
issue or evaluate a potential opportunity … with a view
to collaboration in the future?
in short bursts – as and when required, without a huge financial or long-term commitment and no high risk appointment?
for a specified period of time at a quoted upfront fee
to help give you a broad(er) view of a particular
opportunity as an embedded advisor – maybe even as
a “non-exec” Director?
on a flexible retainer basis, used as a key strategic
resource to work alongside company management?
The initial snapshot is similar to that in the previous slide.
The great thing about involving a CMR expert is that you only pay for the relatively short time they have to spend on handling your project – it’s not like have to pay a permanent employee or someone who is ineffectual.

10. Our objective
is to analyse your business issues – including opportunities
is to be able to identify solutions you can put in place
is to help to implement those solutions
is to identify the strengths and weaknesses of your team
is to suggest strategies which could make a real difference to your business

11. We achieve results
We’ll match your business situation with an appropriate expert, within a cost-effective strategy
For complex challenges, we’ll put together a specialised team focused on your project
It’s fine if the CMR executive initially dealing with the client personally has the right skills – but the beauty of CMR is that we can bring in the specific experts as needed, or a whole team of them – selected specifically for your situation.

12. Equity Funding
Access to a large investor database, keen to invest into businesses with good growth prospects
Combined investment capability exceeds £200m
Investors interested in most types of company - early stage to long-established, traditional to high-tech, most industry sectors
Mostly success-related performance-based fees and/or we will sometimes negotiate to accept equity as part of the remuneration.
Complemented by good links with banks and other equity funders - VCTs, etc
Our investor base comprises not only of those investors specifically registered to CMR, but also the many thousands of investors around the world who review CMR’s Fundex – our online ‘stockmarket’ for smaller companies.
The £200M is probably a great understatement of the collective worth of all our investors – it’s there to let people know there are substantial funds that are potentially available.
Our investors come from all walks of life, all industrial backgrounds, and all different reasons why they are now wealthy!
This means that we have investors who are interested in most types of opportunity – of course they all have the same motivation – they want to make money from their investments.
Although we will often charge time-based fees, we are also interested in benefiting from the successes we achieve for our clients.
When seeking funding for our client, we do not just look to our own investor base – as appropriate we will also look at other funding sources and institutional funders.

13. Our Investor Database private high net worth individuals
institutional and corporate venturing groups
seeking investment opportunities in the smaller
company sector for
innovation
higher rates of growth
turnaround situations
many are 'business angels', willing to help businesses
with their considerable expertise in addition to funding
…nothing is guaranteed but we endeavour to ensure that good ventures achieve the support they require
Our investors range from those with only £50K to invest (our minimum for registering an investor) to those with millions, even billions, to invest.
They are primarily (but not exclusively) interested in the three sectors mentioned: innovation, high growth, turnaround – but the core objective is to make money!
Quite a number of our investors are those who have made their money from their own entrepreneurial efforts, and many of these are interested in helping companies, not just with money, but also by inputting their skills, experience and perhaps contacts too.
We can never guarantee that funding will be achieved – but we will try our best.

14. Company Sale Expertise, enthusiasm A fresh, pro-active approach
Specialists in working with companies
(a) seeking acquisitions
(b) attempting to arrange a merger
(c) needing to sell confidentially
A complicated area – we support and evaluate all aspects
CMR is not like some company sales organisations that merely list the business and hope a buyer will turn up. CMR is proactive – we not only properly prepare the business for sale, we will strategically target potential buyers and proactively approach them in the right way. Because CMR has so many high level executives from every industry, collectively we not only know the market intimately, but will often also know personally those who could be potential buyers. This is a BIG advantage we bring for selling owners.
Best price
Quickest route
Client
Satisfaction

15. FundEX™ bringing investors and businesses together on-line
Unique helps businesses and entrepreneurs in all countries to raise new funds via CMR's automated system – with no upfront fee
Informs investors of investment opportunities as propositions placed are notified to all registered
Investor interest is automatically -notified directly
to the person or firm placing the proposition
FundEX is still unique in the world – it is the only place that companies, entrepreneurs, etc. around the world can address their ideas and propositions to a global bank of potential investors. Furthermore, there is no upfront cost for doing this – only a very minor percentage fee payable on a successful outcome – of 2% reducing on size to only 0.25% for larger projects.
The Fundex system is automatic – projects are entered online – interested investor communicate online directly with the company/ entrepreneur, and negotiate their own deal.
Fundex is also available for use by advisers, professional firms, etc. – and by registering beforehand with CMR the firm can even have its own logo displayed alongside their propositions.
Fundex supports video – which is a great way for telling investors why they should be interested in investing.

16. FundEX™ is aimed at businesses seeking funding
innovators seeking support
businesses for sale
opportunities for Management Buy-ins
insolvent companies and Assets/Insolvency Practitioners
business people seeking mergers
those interested in Joint Ventures or seeking joint partners
businesses seeking distributors
those with shares to sell or other propositions

17. completes successful deals
because of our network of expertise
because of our industry connections
because of our investor base
because of our MBI investors and executives

18. Some completed business
Management Buy Out (MBO) of Decorative Packaging business for £3.5m
Purchase of photographic accessories business from USA owner for £2.5m
Sale of two IT businesses to trade buyers for £3m and £1.5m
Data services business sale to purpose-formed Community Interest Co.
Sale of construction services business for £2.5m
Sale of purchasing services co. for £1m plus performance-related bonus
Retirement sale of engineering business for £1.5m
Advice to Health care group on £20m sale of nursing homes
Sale of greetings card publisher
BIMBO (Buy-in /Management Buy-out) for £3.5m in ambient foods sector
These are just examples of completed business – to give an idea as to the breadth of business we handle.

19. Corporate Recovery – Plan your future before others plan it for you
Premise:
There is nothing inevitable about the fate of a company.
Many companies fall into the trap of being too busy to plan their future – it’s easier to "just carry on“?
Size counts:
Sometimes, no matter how effectively a company
is run, it can never compensate for a lack of critical mass.
Result:
The company may need to completely change its structure
in order to survive and prosper.
Many companies that are in danger of going bust will do so, because nobody acts fast enough. Many managements are in denial or are pinning their hopes on some event happening – like a big order coming in. Providing a company comes to us early enough then it is almost certain that something can be done to save the business, or at the very least; make the owner’s situation a lot better.
Sometimes, and this happens particularly in a recession – sales turnover declines to the point where it is not possible to cut costs enough to cover. This is a situation where the company will almost certainly go bust – BUT CMR can still help the business to recover, even in these dire circumstances. This is where our Catalyst Group Programme comes into play.

20. What’s happening now?
Most businesses that go into liquidation or that are sold in a forced sale could have avoided this fate by analysing their current situation and talking to CMR as early as possible

21. Our Business Lifeline Programme doesn’t make a catastrophe out of a crisis
If recovery of the business as it stands looks possible,
we will, working with the owners:
secure the immediate current position
allow time to implement the full recovery action plan
bring in an insolvency practitioner to secure the legal position of the directors if necessary
implement the development plan
possibly utilise our wider resources - proposals for cost-reduction and profit improvement
possibly introduce potential private investors
Securing the immediate position means making whatever changes are needed in the company (strategy, cutting costs, etc.), dealing with any creditors, talking to the bank and/or investors, etc. If the company is already insolvent or very close, we will call in our (friendly) Insolvency Practitioner to protect the company’s directors and ourselves.
Whatever we decide the strategy is going to be (and it will be different for every company), we will them implement it in conjunction with our client.

22. Catalyst Groups The Concept: The Result:
Combine your company with two, three, four or more companies operating in the same or complementary market segment
The Result:
A group with collectively stronger sales and gross profit generation capabilities and substantially reduced overheads = good profits & cash flow
This is the only way (apart from selling a company) to save a business that is now subcritical – that is the likely gross profit generation is incapable of supporting the fixed costs of being in business. By doing this, we not only make the business almost immediately profitable, we also provide for good profitable growth in the future, and of course we protect the wealth the owner has in the business. This will not be a painless process, and in many cases the company will have to go into an insolvency procedure as part of the programme. It will however save the shareholders to fight another day and eventually restore the wealth they have in the business.

23. is the Catalyst
The CMR Catalyst Group Programme can achieve remarkable results for small to medium-sized businesses - often in circumstances that would normally be described as 'challenging'
takes the strengths of each component part
allows profitability to be generated at a much higher and sustained level than would otherwise have been possible
can also be a good exit for progressive retirement
CMR handles the approaches made and negotiations with the potential partners for our client company. Please read for the details.

24. How do Catalyst Groups work?
combining the businesses =
sharing of some of the fixed overhead operating costs
combined business + much of the gross profit
greatly increased net profits on bottom line
+ cash generation
adds in experienced management support that could
not possibly be available to the companies individually

25. The resulting ‘Catalyst Group’
makes good net profits from the outset
is now able to grow strongly into the future even where market conditions are not that favourable. Also becomes attractive for inward investment
Reduces risk and increases shareholder value

26. International Technology Licensing
Our Programme:
ensures that intellectual property is technically and commercially viable and developed to maximise royalty revenues.
Our Objective is:
to commercially exploit your invention, innovative product or idea
to aim for substantial up-front monies, as well as major royalty revenues downstream
We will always start by looking at how strong and viable the patents (or other IP) are – not just because that is vital for licensing, but we don’t want to waste our speculative time on an idea that can’t be properly protected.

27. What successful licensing requires
established distribution strengths
market credibility & product support
the ability to access and penetrate major markets quickly
the sales and marketing muscle to promote the product
We look for potential licensees who already have the distribution strengths needed – this usually means they already operate in the prime market sectors for this product. They should have a strong brand and the ability to support the product before & after sale.

28. How can our International Technology Licensing Programme work for you?
A starting point:
CMR agrees involvement terms - usually a minority equity share in the invention
If external funding required, CMR may be able to source
Patents (or other IPR) will be fully reviewed
technical security aspects
risk to the IPR of attack from third parties
We usually work on a one third share of the equity in the company we usually form from scratch to own and license the product. The inventor will usually own the other two thirds, but will dilute from this if an external investor needs to be brought in. If money is needed on the patents, we will usually recommend that the inventor pays if possible – that avoids a major dilution for them.
It is not only important that the patents/IP are properly written and filed, we need to know that professional searches have been conducted if the patents are not yet granted, but we also need to be sure that the patent is likely to be strong enough to withstand attacks from large companies who may be tempted to challenge the validity of the patent.

29. Important factors to consider
If substantial overseas royalties likely, tax planning will be addressed.
Licensing strategy will be agreed
targeting of prospective licensees
method of approach
type of agreement sought
up-front payments and royalty rates required
If overseas royalties are likely to predominate, it may be desirable to consider locating the company jointly owned with the inventor offshore. This is always left for the inventor to decide.

30. The Licensing Programme – next stages
Prepare a marketing package to present the product in the most beneficial way
Begin negotiations with target licensees – objective: as many as possible keen to finalise a deal in the same time frame
Maximise initial payments, royalty rates and other contractual conditions
Continue negotiations until the desired deal is completed and the legal aspects finalised
The licensing agreements reached will be policed by CMR to ensure the correct royalties are paid during the life of the agreement

31. CAVENDISH MANAGEMENT RESOURCES
Head Office: 31 Harley Street, London W1G 9QS, UK
Tel: +44 (0) Fax: +44 (0)
Scottish Office: Regent Court, 70 West Regent Street, Glasgow G2 2QZ
Tel: +44 (0) Fax: +44 (0)
Irish Office: Arena House, Arena Road, Sandyford, Dublin 18
Tel: +353 (0) Fax: +353 (0)
C.I Office: CMR House, Footes Lane, St Peter Port, Guernsey GY1 2UF
Tel: +44 (0) Fax: +44 (0)
Web:
Registered England no

33. Thanks for business referred
Not only verbal recognition - We pay significant commission
as a thank you for introducing Business:
CMR will normally pay 7.5% of the first year's net fees earned from clients introduced requiring support in:
business funding and management support
company sales, M&A and corporate recovery
technology licensing and other services provided by CMR …
CMR is interested in hearing about:
Businesses that need funding or that are coming up for sale
Businesses with good technology that require commercial development
Businesses who are having financial difficulties or who need management support

34. And thank you for business referred resulting from introduction of Investors
CMR pays 7.5% of the funding success fees earned by CMR when an 'introduced' private investor invests into a CMR managed project.
Unlimited payment for ten years after investor introduction
CMR meets UK FSMA requirements
CMR does not charge investors - private individuals anywhere in the world who can self-certify as being a high net worth or sophisticated investor.
Introductory fees apply only to new business and people introduced
Fees are derived from the businesses being funded