London’s Window of Opportunity
Using the Downturn to Prepare for the Upturn
24th September 2009
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Who we are
London’s foreign direct investment agency
Supported by Government & the business community
Confidential & comprehensive consultancy service
Experts on London business
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Think London Clients
Our Speakers
Mark Davies
Executive Director, Think London
Bill Crowley
Senior VP International, TechTarget International
Mike Curran
Tax Director, PwC
Quick Poll
So why London Now ?
Think Value
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Talent▲Talent Pool – Deeper & Wider
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1.9millionHighly qualified workers
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Property▼West End Rent decreased
by up to 30% from 2008
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£▼17.5% against the dollar and 15% against the Euro
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£ Living▼From 3rd to 16th rank worldwide
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Fastest growing capital city
Source: GLA DMAG1 million: Population growth over next 20 years
London’s population (000s)
Think 2012 Games
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Open for Business
500million300
languages
Multisector
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Window of Opportunity Closing?
‘Recession has passed its trough in March 2009’ (NIESR)
‘UK services sector returned to growth in May 2009’ (Cips/Markit)
Surging business confidence - UK recession ‘at an end’ (ICAEW)
‘Interest for London property is picking up’ (Jones Lang LaSalle)
‘By 2013 rents will rise around 40% on lows’ (Knight Frank)
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London Now!
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Touchdown London
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Bill Crowley,TechTarget International
TechTarget – Fastest growing IT media company
•Media company with IT Decision Makers as our audience and technology companies as our advertisers
• 7.5 million worldwide members
• 1000 advertisers
•Growth company
• Founded in 1999, IPO in 2007
• $100M in revenue in 2008, online business still growing in 2009
•Leaders in lead generation and targeting
TechTarget’s Audience Reaches Around the Globe
NA = 4,033,000NA = 4,033,000
APAC = 1,794,000APAC = 1,794,000
EMEA = 1,493,000EMEA = 1,493,000
7.5 million 7.5 million IT BuyersIT Buyers
Latin America = 225,000Latin America = 225,000
Why did TechTarget invest in London during recession
• Readiness• Enough reference-able customers in US; enough membership/visitors in Europe
• Earning very small % of our business from European buyers
• London/UK offers workplace terms most similar to US
• Customer access – London metro area has most UK offices of tech companies or their European headquarters. Ad agency community is strong
• Time zone / travel advantages• London is best place to overlap a workday with most of our office locations. Offices -
Boston, San Francisco, Mumbai and Beijing.
• Talent pool – Availability of people with tech/media experience
Advantage of starting now – Can get deals and access to people to build the business
• Real estate prices are at historic low and lots of serviced office options
• Personnel salary expectations are down, availability of people for consulting assignments
• Suppliers willing to work with a smaller customer or to make deal to earn the business
Challenges in UK right now
• Market is tough
• Budgets have been cut and UK specific competitors are fighting for business VERY hard and to protect their business. Especially difficult as a company trying to break into the market.
• Recovery may lag the US
• Interest rate fluctuations make it difficult to set a rate card
• But we need to do this now• If we waited to start this business until recession over, we would
not be known by our customers and prospects and not in a position to benefit from the upturn
Mike Curran, PWC
London's window of opportunity - how much longer?
PwC
Mike CurranD
irector - SME Inbounds2
4 September 2009
PricewaterhouseCoopers
• Our approach to inbound market:
Introduction
September 2009Slide 28
Director - SME Inbounds
Doing Business guide Economic outlook
PricewaterhouseCoopers
• Technology Executive Connections
• Focus on 5 areas
Introduction
September 2009Slide 29
Director - SME Inbounds
Pathfinder
PricewaterhouseCoopers
• Total Tax Contribution Survey
• 50% tax band – the elephant in the room!
• Enterprise survey results
• What works:
− Research & Development
− Corporation tax rate
− Withholding taxes
− Stock option rules
No.1: Taxation
September 2009Slide 30
Director - SME Inbounds
PricewaterhouseCoopers
• Total Tax Contribution Survey
• 50% tax band – the elephant in the room!
• Enterprise survey results
− 42.9% of technology companies felt the current UK tax regime is quite/very supportive and encouraging at supporting enterprise in the UK.
− 76.5% of technology companies felt that 50% tax rate would have no impact on their business.
− 68.5% of technology companies felt business situation in next 24 months would be a little or a lot better.
No.1: Taxation
September 2009Slide 31
Director - SME Inbounds
PricewaterhouseCoopers
• Total Tax Contribution Survey
• 50% tax band – the elephant in the room!
• Enterprise survey results
• What works:
− Research & Development
− Corporation tax rate
− Withholding taxes
− Stock option rules
No.1: Taxation
September 2009Slide 32
Director - SME Inbounds
PricewaterhouseCoopers
No.2: Current research overview
September 2009Slide 33
Director - SME Inbounds
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No.2: Current research overview
September 2009Slide 34
Director - SME Inbounds
PricewaterhouseCoopers
No.2: Current research overview
September 2009Slide 35
Director - SME Inbounds
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No.3: SME
September 2009Slide 36
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No.4: People
September 2009Slide 37
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No.6: Property
September 2009Slide 38
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No.6: Property
September 2009Slide 39
Director - SME Inbounds
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• Where the market will go
− Timing
− Globalisation
• Doing business in London
− Clear focus helps
− Costs manageable
− Great access
Conclusion
Slide 40September 2009Director - SME Inbounds
PricewaterhouseCoopers
• PwC support
Conclusion
Slide 41September 2009Director - SME Inbounds
EssentialsVision to reality
PricewaterhouseCoopers
Conclusion
Slide 42September 2009Director - SME Inbounds
Tech Media
PwC
Thank you
This document has been prepared for the intended recipients only. To the extent permitted by law, PricewaterhouseCoopers LLP does not accept or assume any liability, responsibility or duty of care for any use of or reliance on this document by anyone, other than (i) the intended recipient to the extent agreed in the relevant contract for the matter to which this document relates (if any), or (ii) as expressly agreed by PricewaterhouseCoopers LLP at its sole discretion in writing in advance.
© 2009 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
Mike Curran
Email: [email protected]
Tel: +44 (0)207 213 8190
Quick Poll
Think Now - Think Londonwww.thinklondon.com
Any Questions?Any Questions?