1. Working to Support Business
CAVENDISH MANAGEMENT RESOURCES

2. Agenda Introduction Who we are and working with CMR
Examples of our past successes
SME Funding
CMR Associate Profiles
Overview CMR Services and Product offerings
Moving forward……discussion on how we can work together

3. SME Statistcs
There are 4.7 million small businesses in the UK (up from 4 million in 2003)
97% of firms employ less than 20 people
95% employ less than 5 people
Over 500,000 people start up their own business every year
Small firms employ more than 58 per cent of the private sector workforce
13.5 million people work in small firms
Small firms contribute more than 50 per cent of the UK turnover
64 per cent of commercial innovations come from small firms
micro: 0-9 employees, small: employees, medium: employees
(updated May 2008)
Source: Federation of Small Business
High Potential – We choose to focus exclusively in this area……

4. Who We Are Established 1984 Business Exchange
CAVENDISH MANAGEMENT RESOURCES
Business Exchange
Access to Private Investors / Funding
450 Senior Executives
With “Real Experience”
Comprehensive Business Support to SMEs & Public Sector
Equity & Debt Funding
Corporate Finance
Corporate Recovery / Business Lifeline
Technology Support & Business Start-Ups
Interim Management & Consulting

5. Our Values Working together solely for the benefit of our clients…
Our Core Focus – SME’s and Smaller Public Sector clients
Our Philosophy – Profitable and faster growth for our clients in a managed way
Our Strength lies in our several hundred associates, who have had “sharp end” real business experience
Our people are carefully selected, all having held senior or board-level positions and have “been there and done it” before
We believe in working with our client as part of their team not as outside consultants
This way, we deliver results for our clients – working with them until we jointly succeed
Taking risk with them through some contingent fee arrangement
Working together solely for the benefit of our clients…

6. Examples of Our Past Successes

7. Cross Border Fine Collection
The Company
A software company had developed a cross-border road-fine collection system
They had no success commercialising it, and were lacking business expertise
CMR helped prepare a compelling business plan, including CMR management support
From this, CMR prepared a 2-page Investor Summary, which they distributed to carefully chosen potential Business Angel investors
The result
A CMR Angel invested £350k
The CMR executive who arranged the funding supplied consulting and initially interim management services
– and on successful launch was asked to become a director
The same CMR executive next became the Company’s Chairman, supplying overall strategy
Turnover exceeded £2m in first year, with on-target profits
The enterprise continues to grow: after 3 years it had achieved contracts with over 50 European authorities

8. Software Developer The Company
Software developer who produced an innovative customer relationship management software package aimed at the SME sector. Excellent back-up service provided, but little critical expertise to grow the business and capitalise on the sound product offering.
After some initial success, sales stagnated and revenues shrank. This company approached many advisors to assist with developing a solution
CMR was chosen because of the impressive experience base and compensation structure proposed, involving some contingent based fee, with hands-on management involvement
The Solution
After satisfying ourselves about the product appeal and business potential, we initially worked with the company to provide marketing advice and guidance to boost sales. For this, additional equity funding was arranged.
We then worked with the owner on a strategic direction for the business and developed a pragmatic business implementation plan.
One of the Senior Executives working on the project has now been retained by the client to provide ongoing advice and support to the Board. A further member was brought in to provide financial expertise
Result – today the company is back on a growth path, and is developing a valuable route-to-market not only for its own initial product, but for synergistic offerings.

9. Paint Distributor The Company
Successful distributor supplying car paint through 29 fully stocked depots to garages and car repair facilities. Profitability had declined over the years resulting in £30,000 losses per month on sales turnover of over £18 million.
Cash reserves were being depleted and the concerned Managing Director brought CMR in to help.
Analysis quickly revealed that the distribution operation was the main cause of the current crisis. Fixed costs were high and inventory levels enormous because each depot carried the full stock.
The Solution
The only plausible solution was to completely restructure the business through receivership
Within an intensive two week period, CMR closed 28 depots, leaving only one super-depot supplying via overnight freighting contracts.
CMR working with the supportive bank had Receivers appointed, and arranged for a new plc to be established, which acquired the business at a pre-agreed price from the Receivers.
The new plc commenced trading immediately from the one super-depot. Customers now placed their orders on new 0800 phone lines, which if placed by 5.00 p.m. were delivered by a.m. the following day - a perfectly acceptable service level for the customers.
The effect on costs and asset level was dramatic - fixed costs were slashed, as were inventories.
The new company was highly profitable from the outset.

10. Some other success stories
Corporate Finance
Company Sale
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
Advice to Health care group on £20m sale of nursing homes
Sale of greetings card publisher
Retirement sale of engineering business for £1.5m
Company Purchase
Purchase of photographic accessories business from USA owner for £2.5m
MBO / MBI
(MBO) Management Buy Out of Decorative Packaging business for £3.5m
(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.

11. Investor / Funding Base
Access to Private Investors / Funding
Investor / Funding Base

12. Equity Funding
CMR has access to a large “Business Angel” investor database, keen to invest into businesses with good growth prospects
Their combined investment capability exceeds £200m
Investors are interested in most types of company - early stage to long-established, traditional to high-tech, most industry sectors
This is complemented by good links with banks and other equity funders - VCTs, etc
Apart from an initial upfront fee, CMR fees are mostly success-related / performance-based
CMR often negotiates to accept equity as part of the remuneration
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. Debt Funding
CMR has successfully worked with businesses to ensure chances for acquiring debt finance is maximised – we will work with clients to present the best case in the most objective way
We have relationships with various financial institutions who are willing and able to provide loan to SMEs
Debt funding has been obtained from NatWest, HSBC, Coop, Lloyds and both main Irish banks, amongst others.
SFLGS loans have been obtained through relationships with Barclays, Clydesdale etc.
CMR has Asset funding contacts, particularly with property backing.
In some cases, our investors are interested in providing project, debtor book and bridging finance.
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.

14. 450 Senior Executives with “Real Experience”

15. Business Services for SMEs & the Public Sector
Comprehensive Support
Business Services for SMEs & the Public Sector

16. Solutions to Support Business
Start-Ups
Growth
Recovery
Exit/Disposal
Progressive Company Sale
Intellectual Property Licensing
Interim Management & Mgmt Support
Corporate Recovery
MBO/MBI
Commercialise Intellectual Property
M&A
CMFC
Catalyst Group Formation
Business Life line
Management Support
Debt & Equity Funding /
Fundex

17. How do we Work Together

18. Working with our clients
CMR supports clients in many areas:
business funding and management support
company sales, M&A and corporate recovery
technology licensing and other services provided by CMR
CMR specialises in:
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

19. 31 Harley Street London W1G 9QS
Contact Us
31 Harley Street London W1G 9QS
+ 44 (0)

20. Thank you for your time

21. Revenue Sharing
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

22. Revenue Sharing Introducing 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 FSA requirements
CMR does not charge investors / private individuals for accessing business opportunities – they will however need to self-certify that they are 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