Presentation

to

Thursday 13th October 2005

axiom-e’s view

All organisations need to have:

• a clear and realistic strategy,

• the financial resources, controls and systems to see it through and

• the right management team and processes to make it happen.

Our view

Strategic financial management is:• the application to strategic decisions• of financial techniques in order • to help achieve management objectives.

How we deliver

axiom-e was established to:• provide strategic financial management advice to • fast growing companies via• Director-level support.

The problem

The absence of relevant financial support can prove costly.

Early assessment of requirements and appropriate input is necessary.

Our view

An axiom-e portfolio Director

providing high-level support is

• essential for companies without a full-time FD and

• useful for those with one.

Achievements – Recent clients

• High-tech University spin-out - £3.8m VC funding• Manufacturing company - acquisitions• Leading regional recruitment company - expansion• Internet companies• Publishing company -DTI SFL• Electronic products company - DTI SFL

Achievements – Recent activities

• Advised on acquisitions for growing manufacturing company• Working with a University spin-out to raise further VC funding• Raised DTI-supported funds for various start-ups• Refinanced established company• Prepared Business Plans and arranged finance for start ups• Established legal and administrative structures for start-ups • Helped set-up and launch internet company• Acted as interim/part-time Finance Director

Achievements – Consultants

• Acquiring companies– Over 30– Due diligence– post-acquisition integration

• Selling companies– to national & international acquirers

• Fund-raising– Angels, banks & VCs - various amounts up to £5m+

• Flotations– On-Line Travel Corporation – sold to Lastminute.com– IT IS Holdings - £28m raised on AIM (valued £186m)

axiom-e supports its clients by:

• acting as their Finance Director

• providing consultancy for one-off projects

• negotiating on their behalf with third parties.

What we offer

depends on each client’s

Business Strategy

Functional specialisms

• Board-level involvement• Corporate Management/Company Secretarial• Grooming companies for sale/flotation• Acquisitions• Business Financing Advice• Business Planning & Control• Management Accounting• Systems Analysis and Development

axiom-e’s qualified staff have:

• as Finance Director, brought about change in many companies

• helped to start several businesses

• successfully managed companies with turnover from £2m to £500m pa

• acquired or sold more than 30 businesses

• negotiated high-value deals and contracts

• raised £ms in finance

• ensured compliance with good corporate practice and regulations associated with legal, tax & company secretarial work.

How we can help – Experience

• Wide knowledge of business

• Understanding of biotech, high-tech and manufacturing sectors– Technically & scientifically qualified– Fund raising and cash management

• Experience of the Finance Director’s role–Former Finance Director of several companies

• Understanding of early stage companies– Helped fund and launch several start-ups– Tight cash management and investor/bank liaison– Systems implementation

            

 

 

                                            

How we can help – Business Development

• Started several companies

• Developed small companies – 3-fold growth in 2 years (£2.6m to £8m turnover)– Initiated control & reporting framework– Improved professionalism of Board/Management Team– Negotiated with 3rd parties over financial/commercial issues

• Acquisitions

            

 

 

                                            

How we can help – grooming for sale

Increase the chance of a successful sale through:• strategy development

– business planning – acquisitions

• project work necessary to achieve the objectives– axiom-evaluation (business health check)– implement recommendations– follow-up projects

• axiom-exit

            

 

 

                                            

How we can help – axiom-exit

• Preparing the Memorandum of Information • Ensuring financial history and forecasts are supported • Preparing additional financial data for purchasers • Developing financial models to assess the value of deals • Negotiating with potential acquirers and their advisors • Managing the professional advisors and the process • Assisting the legal process by reviewing contracts • Ensuring that the business systems are robust • Helping to ensure the company continues to function!

            

 

 

                                            

How we can help – Our approach

• Adding value – the reason for working• Cost-effective – lower charges than expected • Flexibility – work undertaken when required• Professionalism – experienced and capable• Experienced – hands-on Finance Directors• Honesty – fundamentally necessary from both parties • Integrity – working for the client’s interests• Commitment – see tasks through

            

 

 

                                            

How we can help –Advisors

axiom-e has close working relationships with leading: • Auditors and Tax advisors • Banks • Business Angel Networks • Consultants covering other functions• Corporate Finance Houses • Lawyers • Venture Capitalists

            

 

 

                                            

How we can help – Benefits

• High-level financial management skills– used when required– paid for when used

• Coherent business strategy– clarity – financial evaluation and risk assessment – basis of control and monitoring performance

• Improved focus on financial health– reduce unnecessary expenditure– focus on maximising added value

How we can help - The Next Steps

• Arrange a meeting to identify potential projects and/or

• Undertake an axiom-evaluation

• Prioritise projects

• Undertake initial project

• Agree additional projects

• Agree longer-term advisory role