Indiana UniversitySelect Career Opportunities Orientation Program

September 16, 2003

Presented by:Mike NewellJeff Brown

www.intecap.com

Financial Opportunities in Consulting

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Introduction to InteCap

First consulting firm to launch an integrated practice dedicated to helping companies manage and extract value from their intellectual property

Over 140 consultants with backgrounds in accounting, economics, engineering, finance, marketing and statistics

Offices located in Chicago, New York, Los Angeles, Silicon Valley, Boston, Washington D.C., Houston and London

Clients include leading corporations, high-tech start-ups, and providers of capital involved in “IP-rich” transactions

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Presenter Backgrounds

Mike Newell, Director° Graduated with a B.S. in Mechanical Engineering from University of

Notre Dame (1990)° Worked as a Capital Project Manager in the Refining & Marketing

Departments of Amoco Oil Company° MBA from University of Chicago’s Graduate School of Business in

Finance, Strategy, and Operations Mgmt (1996)° Principal of Tangram Partners, a private equity firm° Joined InteCap in February 2001

Jeff Brown, Associate° Graduated with a B.S. in finance and accounting from Indiana

University (2000)° Joined InteCap as an Analyst° Promoted to Associate in 2003

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Introduction to Financial Consulting

Who are financial consultants? What do financial consultants offer their

clients? In what types of projects are financial

consultants engaged? What are typical tasks performed during the

course of an engagement? Self-assessment Financial consulting as a career platform

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Financial ServicesFinancial Services

Litigation SupportLitigation Support

Investment Consulting ServicesInvestment Consulting Services

Intellectual Asset ManagementIntellectual Asset Management

Who are Financial Consultants?

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What do Financial Consultants Offer Their Clients?

Specialized expertise Outsourcing/resources Fresh perspective and objective third-party

opinion Quick turn-around and focused attention Structured solutions to unstructured problems The “why” behind the numbers

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ValuationValuation

Strategy Strategy

LitigationLitigation

What the value What the value isis

What the value What the value should have been should have been

What the value What the value could becould be

In What Types of Projects are Financial Consultants Engaged?

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ValuationValuation

Strategy Strategy

LitigationLitigation

Written report, analysis, and Written report, analysis, and presentationpresentation

Expert report, analysis, and testimonyExpert report, analysis, and testimony

Written assessment, recommendation Written assessment, recommendation and implementationand implementation

What are the Results/Deliverables of These Projects?

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What is the economic injuryWhat is the economic injuryto the patent owner?to the patent owner?

Depressed PricesDepressed PricesLost SalesLost Sales Opportunity Cost Opportunity Cost

The InfringersThe InfringersInfringer 1

Infringer 2

Infringer 3

The PatentThe Patent

A BetterA BetterMousetrap!Mousetrap!=

Litigation Case Study

Patent Infringement Damages

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Litigation Case Study

The Role of an Analyst

Participate in team meetings to discuss overall approach to assignment

Review client documents Perform industry research Research and compare established royalty

rates Build financial models Perform quality control Create trial exhibits

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Valuation Case Study

Trademark Valuation for Tax Purposes

Retained by a global manufacturer of household Retained by a global manufacturer of household appliances to perform a trademark portfolio appliances to perform a trademark portfolio valuationvaluation

Total Enterprise ValueTotal Enterprise Value100%100%

Total Value of IntangiblesTotal Value of Intangibles56%56%

Other Intangibles

Value32%

Fair Market Value24%

56%56%

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Valuation Case Study

The Role of an Analyst

Participate in brainstorming discussions with team members

Customize questionnaires for client interviews Research comparable companies in the industry Forecast cash flows and prepare a cost of capital

analysis Prepare a valuation report/narrative Create graphical presentations of financial analysis

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Client dilemmaClient dilemma

How can we commercialize How can we commercialize our intellectual property? our intellectual property?

Strategic OptionsStrategic Options

Form a NEWCO?Form a NEWCO?

Exclusively License?Exclusively License?

Non Exclusively License?Non Exclusively License?

Partner?Partner?

Strategy Case StudyCommercialization of Early Stage Technology

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Strategy Case Study The Role of an Analyst

Participate in initial kick-off meetings with client

Research potential technology applications and markets

Develop valuation analysis Participate in commercialization strategy

brainstorming discussions with team members Assist in communication of findings with client

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Self-AssessmentWould you Enjoy Being a Financial Consultant?

Do you prefer . . .Do you prefer . . .

Other financial careerOther financial career Financial consultantFinancial consultant

Finance only?Finance only? Finance, marketing, economics, accounting?Finance, marketing, economics, accounting?

Concentrate in a single Concentrate in a single industry?industry?

Variety of industries?Variety of industries?

Compartmentalized work?Compartmentalized work? Team work?Team work?

Project work?Project work? Functional work?Functional work?

Corporate culture?Corporate culture? Consulting culture?Consulting culture?

Unstructured environment?Unstructured environment? Structured environment?Structured environment?

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Consulting as a Career Platform

Various skills acquired as a financial consultant

CPA, CFA, MBA opportunities Client contact and industry exposure Foundation for many other careers

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Consulting: Managing Director, InteCap

Investment Banking: Managing Director, Bear Stearns

Marketing: Brand Manager, Procter & Gamble

Sales: Account Executive, Warner Lambert

Graduate School: MBA - Kellogg, Chicago, UCLA, Columbia, etc.Law - Michigan, UVA, Wisconsin, etc.

Consulting as a Career Platform

Examples of InteCap Careers

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Financial consultants provide:Financial consultants provide:

Clients with…Clients with… expertise and objectivity creative solutions clarity and structure

Consultants with…Consultants with… use and development of a wide range of skills broad career platform

In Summary...