FM Analysis

MATURE INDUSTRIES Many industrial companies which underperform don’t have clear visibility on the efficiency of their internal business processes, on cost controlling or on the differentiation factor of their product vs competition.

In such cases, ALX bring assistance and support in relation with setting up relevant KPI (key performance indicators) and dash board, with improvement of manufacturing processes, with product margin and product positioning analysis, or with business development processes, just to cite a few.

In both cases, 5 major issues pop out most of the time and must be addressed diligently: • Management • Cash • Urgency • Business processes • Business development – sales & marketing

Management Due Diligence evaluates the executives who make up the senior management team(s) prior (or post) to the close of a business deal (private equity buyouts, mergers or acquisitions). What questions should the management due diligence process answer?

ALX uses a personal methodology based on past experience which has proved to be very efficient.

ALX makes one-to-one interviews with key managers and/or key employees, in order to get a pretty reliable image of the company by rebuilding the puzzle-like elements brought up during the interviews.

Asking proper questions is a pre-requisite to get proper answers!

Following important issues should be addressed individually with each manager: • Background and education • Past experience in other companies • Current accomplishment in current company • Diagnosis and improvement proposals for own department / function

• Diagnosis and improvement proposals for other department / functions

• Overall company and business view

The management due diligence process should finally bring answers to following questions: • What is the level of management experience and expertise for each major function of the management team ?

• What is the sector expertise of the management team?

• How do the effective manager expertise fit with current company organisation ?

• Is the management team and the company organisation in line with the overall company strategy and objectives ?

• Key people in place and/or to be hired? Management recruitment plan ?

If you are able to do so, please detail any significant clients/cases undertaken by your firm in the past year.

Project 1 Country: EUROPE – CHINA - TAIWAN Sector: Micro-electronics Product:Highly integrated – high performance touch module unique man-machine interface - patented navigation SW Project : 12 months development – 6 months industrialization to product launch Deal type : VC

Project 2 Country: FRANCE - CHINA Sector: Micro-technology Product: Liquid micro-lens (mobile camera, code bar reader, etc...) Project: Finalization of product development & transfer of pilot production line to china Deal type: VC

Project 3 Country: USA – UK - SUISSE Sector: Microelectronics Product: GPS - chipset Project: Company reorganization & interim COO

Deal type: VC

Project 4 Country: FRANCE - ROUMANIA Sector: Metal transformation Product: Metal mesh, grids, others (airbag, aviation, etc...) Project: Complete company reorganization & turnaround operation Deal type: Distressed

Project 5 Country: GERMANY Sector: Automation Product: Industrial air conditioning systems (food, pharma, etc..) Project: Spin off & company restart Deal type: Distressed

Project 6 Country: GERMANY Sector: Industrial automation Product : electrical control boards and cabinets Project: Detailed opportunity and risk assessment for UK investment fund Deal type: Distressed

Project 7 Country: NORWAY Sector: Industrial machinery Product : thin plastic films for wrapping goods (food, pharma,...) Project: Detailed opportunity and risk assessment for UK investment fund Deal type: Distressed

What are the common challenges faced by your clients?

Most investors and / or managers don’t have a clear view over the company current situation, and are unaware of critical and urgent issues. In case the potential clients have a degree of awareness over some of the issues, they do have some difficulties to identify the major causes, and to apply the proper remedies.

ALX due diligence is short and intense. It brings a value several times higher than its cost, and provides the clients with following key advantages: • third party opinion • validation of the fit between strategy and operation

• analysis of specific weakness and risk factors • clear pragmatic recommendations • possibility to move quickly to the next step in order to implement the recommendations

How can your firm assist the client when such challenges arise?

ALX provide essentially 3 types of services:

• GLOBAL COMPANY DUE DILIGENCE / COMPANY HEALTH CHECK / DIAGNOSIS Pre- or post investment top level due diligence, business risk assessment, identification of key weaknesses and related corrective recommendations (Management, organization, product positioning, competitive analysis, financials, business development, manufacturing processes,…)

Duration: 4 – 10 effective working days over 2 – 3 weeks period, including preliminary doc reading & analysis, company visit and individual face-to-face meetings with key managers and individuals, complementary search and investigations, synthesis of notes and other doc, writing of report.

• BUSINESS PROBLEM SOLVING / TROUBLESHOOTING for INDUSTRIAL COMPANIES Management support & special project management at CXO level (part time or full time): - in Small & Medium Enterprises (Industries) and in Start-up companies (High Tech)

- in underperforming, stressed, distressed or tur around situations

- in complex, crisis or change environment

Duration: 1 – 4 days per week over 3 months – 2 years

• BOARD MEMBER – BOARD ADVISOR Deployment of general experience and expertise in both PRIVATE EQUITY (VC, distressed, buyouts) and INDUSTRIES (strategy & operations) for the mutual benefits of Portfolio Companies and Investors.