Vm introduction january 2015
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VM is an advisory and implementation firm specialized in strategy, mergers and acquisitions, and performance management. It advises medium and large industrial clients in chemicals, steel, automotive, and other industries. VM provides services such as management consulting, interim management, M&A advisory, and performance improvement programs focused on areas like product strategy, revenue enhancement, process excellence, and supply chain management. It also organizes management events on current economic topics to facilitate networking and debate between industry leaders.
Vm introduction january 2015
- 1. 1111VM Introduction January 2015 World-Class Operational Excellence / Performance Management & Mergers & Acquisitions VM Overview * Service Offering * Team * References Frankfurt, January 2015 VM Value Management GmbH * An der Welle 4 * 60322 Frankfurt, Germany Tel. +49 (0) 69 7593 8493 * info@vmvalue.de * www.vmvalue.de
- 2. 2222VM Introduction January 2015 OVERVIEW VM SELECTED REFERENCESB A AGENDA
- 3. 3333VM Introduction January 2015 OVERVIEW VMA We advise on and implement strategy / M&A as well as operations / performance management programs in different industries Overview – VM Advisory and Implementation Firm Specialized consulting and investment advisory firm focused on the areas of strategy / mergers and acquisitions support (market study, buy-side, sell-side, post-merger integration) and performance management (enhancing sales, cost reduction programs, asset management, sustainable productivity improvement e.g. Six Sigma, Lean. Continuous Improvement Process) Our Services • TOP Management consulting / implementation • Interim management • M&A Advisory • Team network of international experts • Management education and university activities • Management-Events - Value Management FOruM • Social Commitment – advisory board of IB School Our Clients Our German and international clients (e.g. Turkey, Ukraine, Netherlands, Switzerland, Italy, France, UK,, US, South Korea, India) are medium and large industrial companies in chemicals, industrial services, steel, metals, engineering, automotive, and private equity firms Selected References • Chemicals (Lanxess, BASF, Degussa, OMV, Celanese, etc.) • Industry (chemicals) Services (ThyssenKrupp Services, Infraserve, etc.) • Steel / Metals (ThyssenKrupp, Tata, Hisar, etc.) • Engineering (Siemens, SGB-SMIT, ZTR, ISMET, Hyundai, ThyssenKrupp Plant Engineering) • Automotive (Mahle, Nemak, etc.) • Private Equity (Quadriga Capital, BC Partners, etc.)
- 4. 4444VM Introduction January 2015 OVERVIEW VMA Many successful companies use state-of-the-art Performance Management and grow organically and by Mergers & Acquisitions 10 Key VM Service area - Performance Management and Mergers & Acquisitions Performance Management Supply Chain Management Product- and Market Strategy Revenue Enhancement Process Excellence Organizational Effectiveness Mergers & Acquisitions Support Post-Merger Integration Pre-Deal Advisory Commercial Due Diligence Financial Due Diligence Operational Due Diligence
- 5. 5555VM Introduction January 2015 OVERVIEW VMA The highest potential for optimization can be found in processes and leadership in five different areas of work Performance Management – 5 Key Areas 2. Revenue Enhancement 3. Organizational Effectiven. 4. Process Excellence 5. Supply Chain Management 1. Product / Market Strategy Focusing on growth and growth strategy Increase efficiency of sales organization and CRM Multi-project management, network competence improvement Restructuring of the organization, direct / indirect areas Operational and organizational optimization Management Operating System & Performance Management Reduction of the costs of production, warranties and ex gratia payments Total costs of quality / Robust design (Time to quality) / Six Sigma Value Chain Excellence Suppliers: Selection, Evaluation, Development, Controlling Total costs of ownership, Supply Chain Management Cost (in- / outbound) and controlling of logistics, Inventory Management Identification of the most innovative and sophisticated products Optimizing development cycles Embodiment of Product-Lifecycle with PLM
- 6. 6666VM Introduction January 2015 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Kum. Kosten Kum. Ergebins Cash Flow Status State-of-the-art Performance Management leads to significant profit and cash flow improvement through operational excellence OVERVIEW VMA Example - Benefits Case of an operational excellence project (Projektergebnis/Cash flow) • The total consulting cost are typically covered by profit improvements by the end of a project. • Year one after a project shows typically at least 3 times more profit than the one-off consulting cost. • i.e. Return on Investment on consulting (ROiC). 3 to 1 in year one Month
- 7. 7777VM Introduction January 2015 OVERVIEW VM Typical Performance Improvement Phases Typically a 2-4 weeks analysis already reveals operational and financial benefits improvement potential A Quantification and qualification of potential improvements (operational + financial) Definition of common and shared targets, involvement in support of all parties Definition of an agreement on approach, project team and structure, milestones Cost-benefit analysis + guaranty: business case, cash flow- / ROIC1- analysis, implementation costs Design and development of solutions to be installed Realization of potential Monitor KPI’s and financial benefits Sustaining best practices and tools Training and coaching of employees, "On the Job“ Intensive support during the implementation on all levels Assurance of results Background, strategic targets, operational issues and challenges First Hypothesis – identification of main focus areas First draft potential benefit case Design Development Installation Analysis phase Scoping 2-4 weeks 3-6 months Analysis Project Plan Implementation phase 1) ROI = Return on Investment for Consulting
- 8. 8888VM Introduction January 2015 OVERVIEW VMA Successful M&A support needs the following five areas of analysis, e.g. in operations / commercials / finance Merger & Acquisitions – 5 Key Areas 2. Commercial Due Diligence Synergy Assessment 3. Operational Due Diligence Synergy Assessment 4. Financial Due Diligence 5. Post-Merger Integration 1. Pre-Deal Advisory Commercial Analysis Market Analysis New Markets / Platforms Operational Analysis 100-Day Plan Value-Gap Performance Implementation 100-Day Cash Flow Generation Strategy Plan Market Analysis Operational Due Diligence Commercial Due Diligence Financial Due Diligence Strategy Plan Integration and Synergy Estimates 100-Day Plan
- 9. 9999VM Introduction January 2015 OVERVIEW VM Typical M&A Pre-deal advisory and Commercial Due Diligence scope Source: VM Commercial due diligence proposed by VM – A proven approach to assess opportunities and risks in a “red flag report” A Phases Modules CDD plan Findings Feasibility workshop & Commercial Due Diligence I II III Presentation of Findings Pre-deal advisory: Feasibility workshop a. Review Erdemir´s strategy for Europe b. Summarize and profile the respective acquisition target i. Preliminary SWOT-analysis (strengths, weaknesses, opportunities, strengths ii. Preliminary high level evaluation of customers, suppliers, competitors, production and sales footprint iii. Preliminary evaluation of financial information incl. potential purchase price expectation c. Summarize potential strategic, operational and financial synergies with Erdemir TOP line risk/opportunity A Commercial Due diligence a. Market review i. Validation of market information provided by target ii. Market size and drivers and growth iii. Barriers to Entry iv. Clients v. Suppliers vi. Competitors b. Business plan validation i. Assumptions on sales ii. Assumptions on operations/capex iii. Site visit and interviews with target c. VM approach includes public research/ interviews (competitors, clients, suppliers B EBITDA risk/opportunity Targets • Background, targets & issues • Define and align on detailed DD plan • Estimated potential benefits/risks • Steering Committee • Information gathering including operational and financial reports
- 10. 10101010VM Introduction January 2015 Additional benefit for VM-Business Partners – the VM FOruM is THE format for exchanging ideas in business, politics and society OVERVIEW VMA Value Management FOruM – 2013/14 Renowned speakers, e.g. • Rudolf Scharping, former Federal Minister Germany • Ernst Welteke, former President German Central Bank / Bundesbank • Dr. Judith Hartmann, CFO, Bertelsmann • Dr. Henrik Adam, CCO, Tata Steel • Dirk Wallesch, CFO, Deutsche Edelstahlwerke • Dr. Samuel Ying, CEO, Posco Europe • Jochen Fischer, CFO, SGB-SMIT Transformers • Florian Rentsch, Minister for Commerce Hesse Hot topics Networking Inspiration
- 11. 11111111VM Introduction January 2015 Speeches on current economic subjects serve as the basis for the debate between leaders from different industries OVERVIEW VM Value Management FOruM – 2011/13 Renowned speaker, e.g. • Professor Dr. Dres. h.c. Bertram Schefold, Goethe-University Frankfurt • Hans Strothoff, CEO MHK Group and Strothoff International School • Prof. Dr. Burkhard Schliessmann, International piano artist Successful format Supported by FOM University Twice a year Royal ambience A
- 12. 12121212VM Introduction January 2015 VM organizes and moderates further top management events and conferences – e.g. at the biggest financial conference in Frankfurt OVERVIEW VM VM Panels – Private Equity &„Mittelstand“, 17. Euro Finance Week 2014 Renowned speakers, e.g. • BCHans Haderera, BC Partners • Uwe Kolb, Bridgepoint • Dr. Andreas Fendel, Quadriga • Mr. Klös-Hein, EEW Group • Dr. Mark Währisch, Standard & Poors • Mr. Wittershagen, Deutsche Bank Successful format TOP Management attendance Once a year 800 participants A “ Im Rahmen des Frankfurt International Investors Day (FIID) am 21. November 2014 im Congress Center der Messe Frankfurt hat VM zwei der zahlreichen Foren entwickelt. Sie werden von Prof Dr. Jochen Vogel moderiert. Nutzen Sie die Gelegenheit, in Diskussionen zu Themen wie »Private Equity« und »Operational Excellence« mehr über Chancen, Risiken und Trends für das kommende Investmentjahr 2015 zu erfahren. Wir werden u.a. mit BC Partners, Bridgepoint, Quadriga, Standard & Poors, Deutsche Bank und Mittelständlern diskutieren. “
- 13. 13131313VM Introduction January 2015 OVERVIEW VM Our consultants are a sound mix of experienced executives from operations, strategy and M&A as well as industrial CEO´s / former clients A VM Core Team K. GrywatzC. Hurth S. Henkel F. Balereau J. Vogel O. J. Staudacher S. Kangas C. Hurth S. Henkel Core Team Performance Management Project Support Managing Director G. von Leoprechting G. Flierl F. Krone Core Team Mergers & Acquisitions Industrial Advisors S. Akkaya H. Smetan N. Ölcer M. Bisschop F. BalereauJ. Kraus A. Hund P. Schulz S. Sagnak A. Kucher
- 14. 14141414VM Introduction January 2015 OVERVIEW VM Prof. Dr. Jochen Vogel Managing Director A Professional Experience and Education Key Skills: Tools and Industries Key Projects – Consultant, industrial manager and university professor with background in manufacturing, services and private equity industries – Founder and Managing Director of the interim management and consulting company VM Value Management GmbH, provides senior teams , tools, coaching and results – Analysis and implementation of programs for sustainable profit improvement – Concept and implementation of corporate takeovers / mergers, including capital raising – Several Advisory Board memberships, Strothoff International School, Frankfurter Gesellschaft für Handel, Industrie und Wissenschaft 2009 VM Value Management, Managing Director/ Performance Management / M&A, Senior Advisor Roland Berger Strategy Consultants 2004 Proudfoot / Celerant Consulting, Managing Director, Head of D/A/CH, Performance Management 2000 Lehman Brothers, Director Investmentbanking, M&A, Corporate Finance 1997 ThyssenKrupp Materials & Services, Director Controlling/Strategy/M&A 1993 PWC (Coopers & Lybrand), Audit/Corporate Finance 2011 Prof., FOM Hochschule – Academy of Management, Frankfurt 1997 Dr. rer. soc. oec, University of Economics, Wien 1993 Diplom-Kaufmann, Gerhard-Mercator University Duisburg – Several years of productivity improvement, market analysis, sales enhancement and M&A in industrial products and services incl. energy (RWE, E.ON, INA, BP), steel (ThyssenKrupp, Posco, Tata, Hisar Celik), engineering (ThyssenKrupp, Siemens, ZTR- Zaporozhtransformator, Hyundai, SGB-SMIT, Ismet, Berco, Titan) – Restructuring and sustainable profit improvement by cost and sales effects in industrial private equity companies, e.g. Mäurer & Wirtz, Klöckner, Pentaplast – Restructuring and sustainable profit improvement for subsidiaries of large groups, e.g. ThyssenKrupp, Bayer, Evonik Degussa, Posco – Search and analysis of M&A (e.g. Gizem frit, Hisar Celik) opportunities by pre- merger market analysis and commercial, operational and financial due diligence – Operational and strategic concept and implementation of accounting and controlling standards (Value Based) in an international diversified industrial group
- 15. 15151515VM Introduction January 2015 OVERVIEW VM SELECTED REFERENCESB A AGENDA
- 16. 16161616VM Introduction January 2015 Selected References Our recipe of success is already implemented in many companies Industrial Services Engineering Private EquityOil/ Chemicals Automotive ThyssenKrupp Automotive ThyssenKrupp Technologies ThyssenKrupp Materials & Services einschl. ThyssenKrupp Industrieservice Steel / Metals SELECTED REFERENCESB
- 17. 17171717VM Introduction January 2015 SELECTED REFERENCES VM FOruM Speakers - Organizations and Companies VM FOruM speakers are TOP Managers from large and mid-cap companies – as well as sometimes musicians, priests or scientists B
- 18. 18181818VM Introduction January 2015 Selected References – Chemicals Chemical companies need to maintain high margins due to high pressure e.g. through consolidation and oil price volatility B Clients Project examples • Re-structuring of the foreign subsidiaries to secure position • Planning and implementation of a program for reducing the maintenance costs • Market analysis and development of growth opportunities • Strategic, operative and financial analysis of potential M&A targets • M&A Buy-Side-Support / Commercial Due Diligence SELECTED REFERENCES
- 19. 19191919VM Introduction January 2015 SELECTED REFERENCES Selected References – Industrial Services Industrial Service Providers need to find their market niche and prepare for further consolidation B Clients Project examples • Design and implementation of a value-based management- system including financial, operative and strategic KPI‘s • Introduction of a cost calculation model on the retail-level • Reduction of fixed costs of a regional organization • M&A analysis for subsidiaries • M&A investors looking for subsidiaries • M&A Buy-Side-Support ThyssenKrupp Materials & Services
- 20. 20202020VM Introduction January 2015 Companies spezialised in engineering can usually be improved in the fields of indirect costs, production and value chain B Clients Project examples • Optimization of the European Overhead-Structure • Increase in efficiency in production-and supply chain, e.g. increase in performance by 10% within 6 months at the same fixed costs • M&A Sell-Side-Support • Strategic M&A analysis of selected targets • Improvement in quality of the demand process of the cost- and time-budget ThyssenKrupp Technologies SELECTED REFERENCES Selected References – Engineering
- 21. 21212121VM Introduction January 2015 Selected References - Automotive Efficient automotive suppliers need to catch the “high hanging fruits“ B Clients Project examples • Introduction of Lean Management • Optimization of production, including Six Sigma training • Supply chain optimization integrating purchasing, production and distribution • M&A Buy-Side incl. legal Pre-Merger-Analyse • M&A Buy-Side Commercial Due Diligence SELECTED REFERENCES
- 22. 22222222VM Introduction January 2015 Selected References – Private Equity Investors are being supported while buying or selling companies as well as preparing for exit B Clients Project examples • Performance-improvement programs for investors • Development of growth strategies • First contact support with the targeted companies • M&A Buy-Side-support for strategy, operations and finance • M&A Buy-Side Commercial Due Diligence • Support in finding the right companies SELECTED REFERENCES
- 23. 23232323VM Introduction January 2015 CREATIVITY DOING RESULTS