Presentation by: Jeffrey S. McCormick General Partner of Saturn Partners LLC CEO of Alternative Technology Resources, Inc.

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Presentation by Jeffrey S. McCormick General
Partner of Saturn Partners LLC CEO of
Alternative Technology Resources, Inc.
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What are the exit strategies?
Saturn Partners
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What are the exit strategies?

• 1) Cash Flow

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What are the exit strategies?

• 1) Cash Flow
• 2) Sale of Assets/Company, perhaps to employees

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What are the exit strategies?

• 1) Cash Flow
• 2) Sale of Assets/Company, perhaps to employees
• 3) Reverse into a Shell

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What are the exit strategies?

• 1) Cash Flow
• 2) Sale of Assets/Company, perhaps to employees
• 3) Reverse into a Shell
• 4) Private to Private Transaction

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What are the exit strategies?

• 1) Cash Flow
• 2) Sale of Assets/Company, perhaps to employees
• 3) Reverse into a Shell
• 4) Private to Private Transaction
• 5) Merger or Acquisition - Public

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What are the exit strategies?

• 1) Cash Flow
• 2) Sale of Assets/Company, perhaps to employees
• 3) Reverse into a Shell
• 4) Private to Private Transaction
• 5) Merger or Acquisition - Public
• 6) OIP

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What are some of the issues for MA transactions?
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What are some of the issues for MA transactions?

• 1) Tax Considerations

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What are some of the issues for MA transactions?

• 1) Tax Considerations
• 2) Cash v. Stock

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What are some of the issues for MA transactions?

• 1) Tax Considerations
• 2) Cash v. Stock
• 3) Asset v. Stock Purchase

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What are some of the issues for MA transactions?

• 1) Tax Considerations
• 2) Cash v. Stock
• 3) Asset v. Stock Purchase
• 4) Management Issues Lock-ups, Vesting,
  Non-competes

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What are some of the issues for MA transactions?

• 1) Tax Considerations
• 2) Cash v. Stock
• 3) Asset v. Stock Purchase
• 4) Management Issues Lock-ups, Vesting,
  Non-competes
• 5) Legal Considerations Contingencies,
  Liabilities

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What are some of the issues for MA transactions?

• 1) Tax Considerations
• 2) Cash v. Stock
• 3) Asset v. Stock Purchase
• 4) Management Issues Lock-ups, Vesting,
  Non-competes
• 5) Legal Considerations Contingencies,
  Liabilities
• 6) Perspective VC, Management, Employees, etc.

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What are some of the factors that dictate value
of acquisitions?
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What are some of the factors that dictate value
of acquisitions?

• 1) Economic Factors Revenues, Earnings
• 2) Technology
• 3) Competitive Environment of Acquirer
• 4) Employees and Management
• 5) RD Pipeline
• 6) Market Perception

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Why are IPOs so attractive?
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Why are IPOs so attractive?

• 1) Raise significant amounts of capital
• 2) Allow you the fuel for acquisition
  strategies
• 3) Create awareness
• 4) Liquidity for investors, employees

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What are some of the issues and negatives with
IPOs?
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What are some of the issues and negatives with
IPOs?

• 1) You need to be a good storyteller
• 2) Reporting
• 3) Pressure
• 4) Liabilities
• 5) Visibility

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General Advice
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General Advice

• 1) Technology is tougher to market than a solution

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General Advice

• 1) Technology is tougher to market than a
  solution
• 2) Build a company to last, be prepared to sell

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General Advice

• 1) Technology is tougher to market than a
  solution
• 2) Build a company to last, be prepared to sell
• 3) Set realistic goals and expectations, and
  allow those to be dynamic

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General Advice

• 1) Technology is tougher to market than a
  solution
• 2) Build a company to last, be prepared to sell
• 3) Set realistic goals and expectations, and
  allow those to be dynamic
• 4) Wealth is created in concentrated
• positions
• Wealth is preserved in diversified portfolios