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Mastering Capitalism™ The Capitalism Capability™ Michael Herlache MBA Managing Director, Holdings Industries May 10, 2015

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Page 1: Mastering Capitalism - The Capitalism Capability

Mastering Capitalism™The Capitalism Capability™

Michael Herlache MBA

Managing Director, Holdings Industries

May 10, 2015

Page 2: Mastering Capitalism - The Capitalism Capability

CapitalismThe Capitalism Capability™

I. Capitalism

II. The Capitalism Capability: Syndication

III. Syndication with Excel Method

IV. Syndication with PHP Method

V. Syndication with MS Project Method

VI. Syndication with Word Method

VII. Investment Syndication

VIII. The Leadership Capability: The Vision, Capabilities, Work Breakdown Structure, & Milestones Method™

IX. How to Become a Billionaire: The Billionaire Capability™

X. Case Study: M&A Nexus

XI. Case Study: FundLinked

XII. Case Study: Merger Nexus

XIII. Case Study: International Football Association

XIV. Case Study: D-League Football

XV. Case Study: Asiansbook

XVI. Case Study: FameLinked

XVII. Case Study: NationLinked

Page 3: Mastering Capitalism - The Capitalism Capability

CapitalismCapitalism: The Capitalism Capability

Page 4: Mastering Capitalism - The Capitalism Capability

Individuals

Capitalism

Capitalism means the privatization of governance and value creation & value capture to maximize pleasure.

Value Themes Syndicators

Males Females

Age

Color

Income

Wealth The syndicator is the primary player of capitalism, being proactive in identifying value themes and syndicating enterprises to maximize the pleasure of the individuals (value creation) and wealth of the syndicator (value capture)

Value themes are that which is pleasureful and valuable to the individual males and females

Corporations Value themes for the corporation are that which minimizes cost for the corporation or maximizes revenues and profit for the corporation

Page 5: Mastering Capitalism - The Capitalism Capability

Capitalism

In Capitalism, positive NPV projects have a timeline of liquidity events to an exit for the Principal. In capitalism, you either have a positive NPV project or a financial product to match with a positive NPV project through its liquidity events. The matching of financial products to positive NPV projects is where Capitalism got its name from.

Positive NPV Project

Financial Product

Financial Product

Financial Product

Financial Product

Financial Product

Financial Product

Financial Product

Liquidity Event 1 Liquidity Event 2 Liquidity Event 3 Liquidity Event 4

Increased Valuation

Enterprise aligned with a value theme

Page 6: Mastering Capitalism - The Capitalism Capability

The Capitalism Capability: SyndicationCapitalism: The Capitalism Capability

Page 7: Mastering Capitalism - The Capitalism Capability

Value Theme Identification(Positive NPV)

The Capitalism Capability: Syndication™

The capitalist plans and executes syndications to maximize NPV (net present value) and thus wealth (cash).

Syndication is the creation of the physical asset along with its financial securities and running a process related to the achievement of a target valuation and subsequent cash exit for the syndicator.

Organic Hybrid Inorganic

Type of Syndication

PlatformLead DatabaseConversionGrowth

PresalesBank GuaranteeJV Cash Business Plan (PPM)

Sources & UsesLBO ModelBank GuaranteeJV CashBusiness Plan (PPM)

Vision (Desired end state) to align with value theme. The vision comes in phases with capabilities corresponding to each phase.

Work breakdown structure (WBS) from vision back to t+0 in phases by capability

Execute work breakdown structure now with Billionaire habits

Existing cash flowingbusiness or real estate

Business or real estate does not yet exist; deals with heavy commodities

Business or real estate does not yet exist; platform, search, content, broadcast, hardware

Page 8: Mastering Capitalism - The Capitalism Capability

The Capitalism Capability: Syndication™

Syndication

Syndication with Excel Method

Syndication with PHP Method

Syndication with MS Project Method

Syndication with Word

Method

t=0(Now)

Target Valuation Milestones Target Exit

Page 9: Mastering Capitalism - The Capitalism Capability

Value Theme Identification(Positive NPV)

Mastering Capitalism

One can say to have mastered capitalism when they have executed on the three different types of syndications; organic, hybrid, and inorganic. For example, the syndicator will have syndicated a technology platform, a large media & sporting play (hybrid with presale on television rights), and LBOed a commodity based play.

Organic Hybrid Inorganic

Type of Syndication

PlatformLead DatabaseConversionGrowth

PresalesBank GuaranteeJV Cash Business Plan (PPM)

Sources & UsesLBO ModelBank GuaranteeJV CashBusiness Plan (PPM)

Existing cash flowingbusiness or real estate

Business or real estate does not yet exist; deals with heavy commodities

Business or real estate does not yet exist; platform, search, content, broadcast, hardware

Page 10: Mastering Capitalism - The Capitalism Capability

Syndication with ExcelCapitalism: The Capitalism Capability

Page 11: Mastering Capitalism - The Capitalism Capability

Syndication with Excel

The capitalist plans and executes syndications to maximize NPV (net present value) and thus wealth (cash).

Syndication is the creation of the physical asset along with its financial securities and running a process related to the achievement of a target valuation and subsequent cash exit for the syndicator.

The syndicator should first translate the Vision, Capabilities, Work Breakdown Structure, & Milestones into a financial model & valuation to understand the amount of positive NPV that the syndication has. The syndicator should incorporate target valuations, target liquidity events, and the target exit.

Page 12: Mastering Capitalism - The Capitalism Capability

Syndication with PHPCapitalism: The Capitalism Capability

Page 13: Mastering Capitalism - The Capitalism Capability

Syndication with PHP Method

Vision (Phased)

Capabilities Model

Work Breakdo

wn Structure

Mods Model

Database Architect

ure

Database Breakdo

wn

Database Breakdo

wn Financial Modelin

g

Database Breakdo

wn Valuatio

n

Subdatabase

Conversion

User Group

Architecture

Message Architect

ure

Communication

Architecture

Process Architect

ure

Platform Customiz

ation

PHP & Finance is the language of business

Page 14: Mastering Capitalism - The Capitalism Capability

The PHP to Cash Flowing Enterprise Method

Page 15: Mastering Capitalism - The Capitalism Capability

Syndication with MS ProjectCapitalism: The Capitalism Capability

Page 16: Mastering Capitalism - The Capitalism Capability

Syndication with MS Project

The syndicator should first translate the Vision, Capabilities, Work Breakdown Structure, & Milestones into a work breakdown structure and then walk through the WBS with the team. The syndicator should incorporate target valuations, target liquidity events, and the target exit.

Page 17: Mastering Capitalism - The Capitalism Capability

Syndication with WordCapitalism: The Capitalism Capability

Page 18: Mastering Capitalism - The Capitalism Capability

Syndication with Word

The syndicator should first translate the Vision, Capabilities, Work Breakdown Structure, & Milestones into the required deliverables associated with contracting the work breakdown structure’s execution along with contracting the cash flows associated with the financial model & valuation.

Page 19: Mastering Capitalism - The Capitalism Capability

Investment SyndicationCapitalism: The Capitalism Capability

Page 20: Mastering Capitalism - The Capitalism Capability

Investment Syndication

Syndication is the creation of the physical asset along with its financial securities and running a process related to the achievement of a target valuation and subsequent cash exit for the syndicator. Syndication becomes Investment Syndication when the securities of the asset are sold in the capital markets. Investment Syndication involves running the process associated with syndicating the asset and then selling the securities associated with the asset into the private markets.

Page 21: Mastering Capitalism - The Capitalism Capability

The Leadership Capability: The Vision, Capabilities, Work Breakdown Structure, & Milestones MethodCapitalism: The Capitalism Capability

Page 22: Mastering Capitalism - The Capitalism Capability

Leadership Capability Model™

Liquidity Event Timeline

Seed Series A Series B Series C Acquisition IPO

User Growth Timeline

70,000 250,000 1,000,000 10,000,000 100,000,000 300,000,000

Multiple Expansion Timeline (User Value)

$5 $10 $15 $20 $25 $25

Valuation Timeline

$1,000,000 $50,000,000 $100,000,000 $500,000,000 $1,000,000,000 $3,000,000,000

t=0

Desired End State (Vision)

Leadership takes us from t=0 (ie now) to the desired end state (ie vision) via the work breakdown structure and wise communication

t=0

Desired End State (Vision)

Leadership takes us from t=0 (ie now) to the desired end state (ie vision) via the work breakdown structure and wise communication

t=0

Desired End State (Vision)

Leadership takes us from t=0 (ie now) to the desired end state (ie vision) via the work breakdown structure and wise communication

t=0

Desired End State (Vision)

Leadership takes us from t=0 (ie now) to the desired end state (ie vision) via the work breakdown structure and wise communication

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Page 23: Mastering Capitalism - The Capitalism Capability

Vision, Capabilities, Work Breakdown Structure, & Milestones Method™Leadership Establishes Desired End State, Breaks the Desired End State Down Into a Timeline of

Capabilities Necessary to Manifest Desired End State and Then Builds a Work Breakdown Structure Necessary to Manifest the Capabilities Along the Timeline and Finally Executes the Work Breakdown

Structure

Liquidity Event Timeline

Seed Series A Series B Series C Acquisition IPO

User Growth Timeline

70,000 250,000 1,000,000 10,000,000 100,000,000 300,000,000

Multiple Expansion Timeline (User Value)

$5 $10 $15 $20 $25 $25

Valuation Timeline

$1,000,000 $50,000,000 $100,000,000 $500,000,000 $1,000,000,000 $3,000,000,000

t=0

Desired End State (Vision)

Leadership takes us from t=0 (ie now) to the desired end state (ie vision) via the work breakdown structure and wise communication

t=0

Desired End State (Vision)

Leadership takes us from t=0 (ie now) to the desired end state (ie vision) via the work breakdown structure and wise communication

t=0

Desired End State (Vision)

Leadership takes us from t=0 (ie now) to the desired end state (ie vision) via the work breakdown structure and wise communication

t=0

Desired End State (Vision)

Leadership takes us from t=0 (ie now) to the desired end state (ie vision) via the work breakdown structure and wise communication

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Capability

Work Breakdown Structure

Work Breakdown Structure

Work Breakdown Structure

Work Breakdown Structure

Page 24: Mastering Capitalism - The Capitalism Capability

How to Become a Billionaire: The Billionaire Capability™Capitalism: The Capitalism Capability

Page 25: Mastering Capitalism - The Capitalism Capability
Page 26: Mastering Capitalism - The Capitalism Capability

Syndication Mapping™Based Upon Work Breakdown Structure and Financial

Model & Valuation

Cash Stars

Cash Cows

Commodities

Unicorns

Growth Rate

Cash Growth

Page 27: Mastering Capitalism - The Capitalism Capability

Syndication Prioritization™Based Upon Syndication Mapping™

Cash Stars

Cash Cows

Commodities

Unicorns

Growth Rate

Cash Growth

1.

2.

3.

4.

Page 28: Mastering Capitalism - The Capitalism Capability

Syndication Comp Spread™Syndication:

Syndications

Cash Flowing & Scaling

Market Share

Aggregate Cash

Cash Flowing Niche

Page 29: Mastering Capitalism - The Capitalism Capability

Case Study: M&A NexusCapitalism: The Capitalism Capability

Page 30: Mastering Capitalism - The Capitalism Capability

Syndication Mapping™Based Upon Work Breakdown Structure and Financial

Model & Valuation

Cash Stars

Cash Cows

Commodities

Unicorns

Growth Rate

Cash Growth

Page 31: Mastering Capitalism - The Capitalism Capability

Products for the Capital Markets™Securities

Syndications

Cash Flowing & Scaling

Market Multiple

Definiteness of Cash Flows

Cash Flowing Niche

Page 32: Mastering Capitalism - The Capitalism Capability

M&A Nexus™The Official Online Investment Banking Platform™

Michael Herlache MBAManaging Director, Holdings Industries

April 13, 2015

Page 33: Mastering Capitalism - The Capitalism Capability

M&A Nexus: The Official Online Investment Banking PlatformI. Vision

II. Capabilities

III. Work Breakdown Structure

IV. Database Architecture

V. Database Breakdown

VI. Database Breakdown Financial Modeling

VII. Database Breakdown Valuation

VIII. Subdatabase Conversion

IX. User Group Architecture

X. Message Architecture

XI. Communication Architecture

XII. Process Architecture

XIII. Platform Customization

XIV. Monetization

XV. Monetization Timeline

XVI. Exit

XVII. Exit Timeline

Page 34: Mastering Capitalism - The Capitalism Capability

VisionM&A Nexus: The Official Online Investment Banking Platform

Page 35: Mastering Capitalism - The Capitalism Capability

M&A Nexus Vision

Phase I: Paid Membership Phase II: Analyst and Associate deal origination team selling lead to highest bidder (auction) Phase III: FINRA compliant Investment BankPhase IV: Independent investment bankers globally underneath the umbrella of M&A Nexus

Page 36: Mastering Capitalism - The Capitalism Capability

CapabilitiesM&A Nexus: The Official Online Investment Banking Platform

Page 37: Mastering Capitalism - The Capitalism Capability
Page 38: Mastering Capitalism - The Capitalism Capability

Work Breakdown StructureM&A Nexus: The Official Online Investment Banking Platform

Page 39: Mastering Capitalism - The Capitalism Capability

M&A Nexus: Work Breakdown Structure

Page 40: Mastering Capitalism - The Capitalism Capability

Database ArchitectureM&A Nexus: The Official Online Investment Banking Platform

Page 41: Mastering Capitalism - The Capitalism Capability
Page 42: Mastering Capitalism - The Capitalism Capability

Database BreakdownM&A Nexus: The Official Online Investment Banking Platform

Page 43: Mastering Capitalism - The Capitalism Capability

M&A Nexus Database Breakdown Model

Page 44: Mastering Capitalism - The Capitalism Capability

Database Breakdown Financial ModelingM&A Nexus: The Official Online Investment Banking Platform

Page 45: Mastering Capitalism - The Capitalism Capability

M&A Nexus Database Breakdown Financial Modeling Method

Page 46: Mastering Capitalism - The Capitalism Capability

M&A Nexus Database Breakdown Financial Modeling Method

Page 47: Mastering Capitalism - The Capitalism Capability

Database Breakdown ValuationM&A Nexus: The Official Online Investment Banking Platform

Page 48: Mastering Capitalism - The Capitalism Capability

M&A Nexus Database Breakdown Valuation Method

Page 49: Mastering Capitalism - The Capitalism Capability

Subdatabase ConversionM&A Nexus: The Official Online Investment Banking Platform

Page 50: Mastering Capitalism - The Capitalism Capability

M&A Nexus Subdatabase Conversion Model

Page 51: Mastering Capitalism - The Capitalism Capability

User Group ArchitectureM&A Nexus: The Official Online Investment Banking Platform

Page 52: Mastering Capitalism - The Capitalism Capability

M&A Nexus: User Group Architecture

Page 53: Mastering Capitalism - The Capitalism Capability

Message ArchitectureM&A Nexus: The Official Online Investment Banking Platform

Page 54: Mastering Capitalism - The Capitalism Capability

M&A Nexus: Message Architecture

M&A Nexus is the official investment banking platform. Connect with Investment Banking professionals for advisory, capital raising, and M&A services. Principals list their deal and then get bids from investment bankers for their deals.

Page 55: Mastering Capitalism - The Capitalism Capability

Communication ArchitectureM&A Nexus: The Official Online Investment Banking Platform

Page 56: Mastering Capitalism - The Capitalism Capability

M&A Nexus: Communication Architecture

Database Lead Communication: Email

Based

User Communication:Platform Based

Paid User Communication:

Platform & Email Based

• M&A Nexus is the official investment banking platform. Connect with Investment Banking professionals for advisory, capital raising, and M&A services. Principals list their deal and then get bids from investment bankers for their deals. Create your free profile & business page now and start doing deals.

• Upgrade to paid membership to communicate with Principals and access deal flow

• Monthly payment invoicing and renewal autopay via PayPal

Page 57: Mastering Capitalism - The Capitalism Capability

Process ArchitectureM&A Nexus: The Official Online Investment Banking Platform

Page 58: Mastering Capitalism - The Capitalism Capability

M&A Nexus: Process Architecture

Pay for M&A Nexus Premium Subscription?

Yes

No

Can create profile, page

Functionality accessed includes message box, messaging, deals mod

Can go from guest to registered member after creating a profile and page; by trying to access message box, messaging, or deals mod, guest will be prompted to upgrade to premium membership

Page 59: Mastering Capitalism - The Capitalism Capability

Platform CustomizationM&A Nexus: The Official Online Investment Banking Platform

Page 60: Mastering Capitalism - The Capitalism Capability

M&A Nexus: Platform Customization

Page 61: Mastering Capitalism - The Capitalism Capability

MonetizationM&A Nexus: The Official Online Investment Banking Platform

Page 62: Mastering Capitalism - The Capitalism Capability

M&A Nexus Monetization

Phase I: Paid Membership, $34.95 monthly Phase II: Analyst and Associate deal origination team selling lead to highest bidder (auction) average lead price of $1,500 to $3,000Phase III: FINRA compliant Investment Bank deal fees of 3% transaction sizePhase IV: Independent investment bankers globally underneath the umbrella of M&A Nexus with deal fee split of 50%-50%

Page 63: Mastering Capitalism - The Capitalism Capability

Monetization TimelineM&A Nexus: The Official Online Investment Banking Platform

Page 64: Mastering Capitalism - The Capitalism Capability

M&A Nexus Monetization Timeline

Phase I: Paid Membership, $34.95 monthlyPhase II: Analyst and Associate deal origination team selling lead to highest bidder (auction) average lead price of $1,500 to $3,000Phase III: FINRA compliant Investment Bank deal fees of 3% transaction sizePhase IV: Independent investment bankers globally underneath the umbrella of M&A Nexus with deal fee split of 50%-50%

Phase I: Year 1 to Year 3

Phase II: Year 3 to Year 6

Phase III: Year 6 to Year 8

Phase IV: Year 8 to Perpetuity

Page 65: Mastering Capitalism - The Capitalism Capability

ExitM&A Nexus: The Official Online Investment Banking Platform

Page 66: Mastering Capitalism - The Capitalism Capability

M&A Nexus Exit

At 50 mm valuation make partial exit to strategic (to large commercial banks or existing investment bank) or financial at pre IPO to cash out. After increasing valuation to $100 mm then full cash out at IPO.

Page 67: Mastering Capitalism - The Capitalism Capability

Exit TimelineM&A Nexus: The Official Online Investment Banking Platform

Page 68: Mastering Capitalism - The Capitalism Capability

M&A Nexus Exit Timeline

Partial Exit to Strategic or Financial: Year 3 to Year 6

Exit at IPO: Year 6 to Year 8

At 50 mm valuation make partial exit to strategic (to large commercial banks or existing investment bank) or financial at pre IPO to cash out. After increasing valuation to $100 mm then full cash out at IPO.

Page 69: Mastering Capitalism - The Capitalism Capability

Case Study: FundLinkedCapitalism: The Capitalism Capability

Page 70: Mastering Capitalism - The Capitalism Capability

Syndication Mapping™Based Upon Work Breakdown Structure and Financial

Model & Valuation

Cash Stars

Cash Cows

Commodities

Unicorns

Growth Rate

Cash Growth

Page 71: Mastering Capitalism - The Capitalism Capability

Products for the Capital Markets™Securities

Syndications

Cash Flowing & Scaling

Market Multiple

Definiteness of Cash Flows

Cash Flowing Niche

Page 72: Mastering Capitalism - The Capitalism Capability

FundLinked™The Official Fund Placement Platform™

Michael Herlache MBAManaging Director, Holdings Industries

April 13, 2015

Page 73: Mastering Capitalism - The Capitalism Capability

FundLinked: The Official Fund Placement Platform

I. Vision

II. Capabilities

III. Work Breakdown Structure

IV. Database Architecture

V. Database Breakdown

VI. Database Breakdown Financial Modeling

VII. Database Breakdown Valuation

VIII. Subdatabase Conversion

IX. User Group Architecture

X. Message Architecture

XI. Communication Architecture

XII. Process Architecture

XIII. Platform Customization

XIV. Monetization

XV. Monetization Timeline

XVI. Exit

XVII. Exit Timeline

Page 74: Mastering Capitalism - The Capitalism Capability

VisionFundLinked: The Official Fund Placement Platform

Page 75: Mastering Capitalism - The Capitalism Capability

FundLinked Vision

Phase I: Paid MembershipPhase II: Analyst and Associate deal origination team selling lead to highest bidder (auction)Phase III: Analyst and Associate fund placement teamPhase IV: : Independent placement agents globally underneath the umbrella of FundLinked

Page 76: Mastering Capitalism - The Capitalism Capability

CapabilitiesFundLinked: The Official Fund Placement Platform

Page 77: Mastering Capitalism - The Capitalism Capability

FundLinked

Fund Placement

Placement Agents

GPs (General Partners) LPs (Limited Partners)

Run process to raise fund or buy & sell secondaries

Page 78: Mastering Capitalism - The Capitalism Capability

Work Breakdown StructureFundLinked: The Official Fund Placement Platform

Page 79: Mastering Capitalism - The Capitalism Capability

FundLinked: Work Breakdown Structure

Page 80: Mastering Capitalism - The Capitalism Capability

Database ArchitectureFundLinked: The Official Fund Placement Platform

Page 81: Mastering Capitalism - The Capitalism Capability

FundLinked Database Architecture

Fund Placement

Run process to raise fund or buy & sell secondaries

5 k LPs (Limited Partners) database

SIC Code: Funds

10 k GPs (General Partners) database

SIC code: Investment Managers

1 k Placement Agentdatabase

SIC Code: Placement Agents

Page 82: Mastering Capitalism - The Capitalism Capability

Message ArchitectureFundLinked: The Official Fund Placement Platform

Page 83: Mastering Capitalism - The Capitalism Capability

FundLinked: Message Architecture

Welcome to FundLinked, the Official Online Placement Agent Platform. FundLinked allows you to use the platform for free but when you want to talk to an LP for funds, you get charged a fee. Further, only on receipt of the funds from closing does the GP then pay the placement agent fee. Instead of having to pay 10s and 100s of thousands of dollars up front (in retainers or consulting fees) to raise Private Equity funds and Hedge Funds, GPs simply go on to FundLinked and find only those LPs that fit with their mandate and then from there, solicit interest. Join FundLinked now for free and start raising your next fund.

Page 84: Mastering Capitalism - The Capitalism Capability

Communication ArchitectureFundLinked: The Official Fund Placement Platform

Page 85: Mastering Capitalism - The Capitalism Capability

FundLinked: Communication Architecture

Database Lead Communication: Email

Based

User Communication:Platform Based

Paid User Communication:

Platform & Email Based

• Welcome to FundLinked, the Official Online Placement Agent Platform. FundLinked allows you to use the platform for free but when you want to talk to an LP for funds, you get charged a fee. Further, only on receipt of the funds from closing does the GP then pay the placement agent fee. Instead of having to pay 10s and 100s of thousands of dollars up front (in retainers or consulting fees) to raise Private Equity funds and Hedge Funds, GPs simply go on to FundLinked and find only those LPs that fit with their mandate and then from there, solicit interest. Join FundLinked now for free and start raising your next fund.

• Upgrade to paid membership to communicate with GPs and LPs and access fund placement functionality

• Monthly payment invoicing and renewal autopay via PayPal

Page 86: Mastering Capitalism - The Capitalism Capability

Process ArchitectureFundLinked: The Official Fund Placement Platform

Page 87: Mastering Capitalism - The Capitalism Capability

FundLinked: Process Architecture

Pay for FundLinked Premium Subscription?

Yes

No

Can create profile, page

Functionality accessed includes message box, messaging, fund placement mod

Can go from guest to registered member after creating a profile and page; by trying to access message box, messaging, or deals mod, guest will be prompted to upgrade to premium membership

Page 88: Mastering Capitalism - The Capitalism Capability

Platform CustomizationFundLinked: The Official Fund Placement Platform

Page 89: Mastering Capitalism - The Capitalism Capability

FundLinked: Platform Customization

Page 90: Mastering Capitalism - The Capitalism Capability

MonetizationFundLinked: The Official Fund Placement Platform

Page 91: Mastering Capitalism - The Capitalism Capability

FundLinked Monetization

Phase I: Paid Membership, $34.95 monthlyPhase II: Analyst and Associate deal origination team selling lead to highest bidder (auction) average lead price of $1,500 to $3,000Phase III: Analyst and Associate fund placement team 2.5% per placementPhase IV: : Independent placement agents globally underneath the umbrella of FundLinked with placement fee split of 50%-50%

Page 92: Mastering Capitalism - The Capitalism Capability

Monetization TimelineFundLinked: The Official Fund Placement Platform

Page 93: Mastering Capitalism - The Capitalism Capability

FundLinked Monetization Timeline

Phase I: Paid Membership, $34.95 monthlyPhase II: Analyst and Associate deal origination team selling lead to highest bidder (auction) average lead price of $1,500 to $3,000Phase III: Analyst and Associate fund placement team 2.5% per placementPhase IV: : Independent placement agents globally underneath the umbrella of FundLinked with placement fee split of 50%-50%

Phase I: Year 1 to Year 3

Phase II: Year 3 to Year 6

Phase III: Year 6 to Year 8

Phase IV: Year 8 to Perpetuity

Page 94: Mastering Capitalism - The Capitalism Capability

ExitFundLinked: The Official Fund Placement Platform

Page 95: Mastering Capitalism - The Capitalism Capability

FundLinked Exit

At 50 mm valuation make partial exit to strategic (to large commercial banks or existing investment bank) or financial at pre IPO to cash out. After increasing valuation to $100 mm then full cash out at IPO.

Page 96: Mastering Capitalism - The Capitalism Capability

Exit TimelineFundLinked: The Official Fund Placement Platform

Page 97: Mastering Capitalism - The Capitalism Capability

FundLinked Exit Timeline

Partial Exit to Strategic or Financial: Year 3 to Year 6

Exit at IPO: Year 6 to Year 8

At 50 mm valuation make partial exit to strategic (to large commercial banks or existing investment bank) or financial at pre IPO to cash out. After increasing valuation to $100 mm then full cash out at IPO.

Page 98: Mastering Capitalism - The Capitalism Capability

Case Study: Merger NexusCapitalism: The Capitalism Capability

Page 99: Mastering Capitalism - The Capitalism Capability

Syndication Mapping™Based Upon Work Breakdown Structure and Financial

Model & Valuation

Cash Stars

Cash Cows

Commodities

Unicorns

Growth Rate

Cash Growth

Page 100: Mastering Capitalism - The Capitalism Capability

Products for the Capital Markets™Securities

Syndications

Cash Flowing & Scaling

Market Multiple

Definiteness of Cash Flows

Cash Flowing Niche

Page 101: Mastering Capitalism - The Capitalism Capability

Case Study: International Football AssociationCapitalism: The Capitalism Capability

Page 102: Mastering Capitalism - The Capitalism Capability

Syndication Mapping™Based Upon Work Breakdown Structure and Financial

Model & Valuation

Cash Stars

Cash Cows

Commodities

Unicorns

Growth Rate

Cash Growth

Page 103: Mastering Capitalism - The Capitalism Capability

Products for the Capital Markets™Securities

Syndications

Cash Flowing & Scaling

Market Multiple

Definiteness of Cash Flows

Cash Flowing Niche

Page 104: Mastering Capitalism - The Capitalism Capability

International Football Association™

The Home of the International Cup Games™

Michael Herlache MBAManaging Director, Holdings Industries

April 20, 2015

Page 105: Mastering Capitalism - The Capitalism Capability

International Football Association: The Home of the International Cup GamesI. Vision

II. Capabilities

III. Work Breakdown Structure

IV. Database Architecture

V. Database Breakdown

VI. Database Breakdown Financial Modeling

VII. Database Breakdown Valuation

VIII. Subdatabase Conversion

IX. User Group Architecture

X. Message Architecture

XI. Communication Architecture

XII. Process Architecture

XIII. Platform Customization

XIV. Monetization

XV. Monetization Timeline

XVI. Exit

XVII. Exit Timeline

Page 106: Mastering Capitalism - The Capitalism Capability

VisionInternational Football Association: The Home of the International Cup Games

Page 107: Mastering Capitalism - The Capitalism Capability

International Football Association Vision

Phase I: Initial sale of television rights to major network (discounted valuation)Phase II: Teams syndicated and stadiums bookedPhase III: Fully staffed teams, games played and broadcastedPhase IV: Merchandise and additional sale of television rights to major network (full valuation)

Page 108: Mastering Capitalism - The Capitalism Capability

CapabilitiesInternational Football Association: The Home of the International Cup Games

Page 109: Mastering Capitalism - The Capitalism Capability

International Football Association

International Cup Games & Championship

IFA

Sponsoring Country for each team

Markets

Run process to sell and executeon the delivery of TV rights tomarkets

Television Networks

Team Players

Page 110: Mastering Capitalism - The Capitalism Capability

Work Breakdown StructureInternational Football Association: The Home of the International Cup Games

Page 111: Mastering Capitalism - The Capitalism Capability

International Football Association: Work Breakdown Structure

Page 112: Mastering Capitalism - The Capitalism Capability

MilestonesInternational Football Association: The Home of the International Cup Games

Page 113: Mastering Capitalism - The Capitalism Capability

Liquidity Event Timeline

Seed Series A Series B Series C Acquisition IPO

TV Contract Growth Timeline

1 2 3 4

Multiple Expansion Timeline (TV Rights Value)

$25 mm $75 mm $125 mm $300 mm $500 mm $1 bn

Valuation Timeline

$1,000,000 $50,000,000 $100,000,000 $500,000,000 $1,000,000,000 $3,000,000,000

t=0

Desired End State (Vision)

International Football Association does not require external financing to sell the TV rights for regular season games, playoffs & championship. Liquidity events will include partial sale privately or publicly (IPO)

t=0

Desired End State (Vision)

User and viewer growth will be within 50% of the NFL

t=0

Desired End State (Vision)

International Football Association’s valuation pre contract is $1 mm, after the first contract the valuation goes up to $50 mm and then up from there

t=0

Desired End State (Vision)

International Football Association’s initial contract value is targeted to be $25 mm

International Football Association: Milestones

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Database ArchitectureInternational Football Association: The Home of the International Cup Games

Page 115: Mastering Capitalism - The Capitalism Capability

International Football Association Database

Architecture

International Cup Games & Championship

IFA

Run process to sell and executeon the delivery of TV rights tomarkets

25 Television Network database

SIC code: Television Network

220 mm individuals database

150 Ministries of Athletics database

Custom database

220 mm individuals database

Page 116: Mastering Capitalism - The Capitalism Capability

Message ArchitectureInternational Football Association: The Home of the International Cup Games

Page 117: Mastering Capitalism - The Capitalism Capability

International Football Association: Message Architecture• This is an excellent opportunity that allows for countries to compete for the global cup!• Football is a sport that has continuously grown in popularity all over the world and the IFA holds the ultimate

sporting event for all the teams in the world to be able to gain as much popularity as they can. • Team owners can take full advantage of this because the exposure that the global cup provides!• World tournament and cups have always been the perfect way for sports teams to be recognized worldwide.

This is the reason why team owners should do everting they can in order o sign their teams up for the IFA global cup.

• Football players should also take advantage of the amount of exposure they will get!• This can be an excellent way for any Football player to enhance his career and get new sponsorships. Those who

play in the IFA global cup are surely going to be targeted by a lot of sponsor who can pay them top dollar if they are able to perform well when they play.

• If you are a Football fan now you have the chance to experience the game at an international level!• There is nothing more important than being able to experience the thrills of your favorite sport by going to the

stadiums and cheering for your team. There is nothing quite like the chants, the Fireworks and the crowds of people cheering each team.

• This is the opportunity to make sure that you get the most out of your involvement in this sport!

Page 118: Mastering Capitalism - The Capitalism Capability

Communication ArchitectureInternational Football Association: The Home of the International Cup Games

Page 119: Mastering Capitalism - The Capitalism Capability

International Football Association: Communication Architecture

Database Lead Communication:

Email Based

Database Lead Communication:

Email Based

Paid User Communication:

Email Based

• This is an excellent opportunity that allows for countries to compete for the global cup!• Football is a sport that has continuously grown in popularity all over the world and the IFA holds the

ultimate sporting event for all the teams in the world to be able to gain as much popularity as they can. • Team owners can take full advantage of this because the exposure that the global cup provides!• World tournament and cups have always been the perfect way for sports teams to be recognized

worldwide. This is the reason why team owners should do everting they can in order o sign their teams up for the IFA global cup.

• Football players should also take advantage of the amount of exposure they will get!• This can be an excellent way for any Football player to enhance his career and get new sponsorships.

Those who play in the IFA global cup are surely going to be targeted by a lot of sponsor who can pay them top dollar if they are able to perform well when they play.

• If you are a Football fan now you have the chance to experience the game at an international level!• There is nothing more important than being able to experience the thrills of your favorite sport by going

to the stadiums and cheering for your team. There is nothing quite like the chants, the Fireworks and the crowds of people cheering each team.

• This is the opportunity to make sure that you get the most out of your involvement in this sport!

• It's a pleasure. Our Group would like to discuss the sale of television rights/ a football franchise with you. We are syndicating a D-League for professional football that is modeled off of the NFL.

• Our Group would like to discuss the renewal of the television rights for International Football Association

Page 120: Mastering Capitalism - The Capitalism Capability

Process ArchitectureInternational Football Association: The Home of the International Cup Games

Page 121: Mastering Capitalism - The Capitalism Capability

International Football Association: Process Architecture

Pay for International Football Association segment already?

Yes

No

Receive an initial consultation email with call to action

Receive a returning customer email with call to action

Page 122: Mastering Capitalism - The Capitalism Capability

Platform CustomizationInternational Football Association: The Home of the International Cup Games

Page 123: Mastering Capitalism - The Capitalism Capability

International Football Association: Platform Customization

Page 124: Mastering Capitalism - The Capitalism Capability

MonetizationInternational Football Association: The Home of the International Cup Games

Page 125: Mastering Capitalism - The Capitalism Capability

International Football Association Monetization

Phase I: Initial sale of television rights to major network (discounted valuation); $100,000,000 per year (3 year contract)Phase II: Teams sold to current soccer team owners or former soccer players and stadiums booked; $20,000,000 per franchisePhase III: Fully staffed teams, games played and broadcasted (Ticket sales)Phase IV: Merchandise and additional sale of television rights to major network (full valuation); $250,000,000 per year (3 year contract)

Page 126: Mastering Capitalism - The Capitalism Capability

Monetization TimelineInternational Football Association: The Home of the International Cup Games

Page 127: Mastering Capitalism - The Capitalism Capability

International Football Association Monetization Timeline

Phase I: Initial sale of television rights to major network (discounted valuation); $100,000,000 per year (3 year contract)Phase II: Teams sold to current soccer team owners or former NFL players and stadiums booked; $20,000,000 per franchisePhase III: Fully staffed teams, games played and broadcasted (Ticket sales)Phase IV: Merchandise and additional sale of television rights to major network (full valuation); $250,000,000 per year (3 year contract)

Phase I: Year 1 to Year 3

Phase II: Year 3 to Year 6

Phase III: Year 6 to Year 8

Phase IV: Year 8 to Perpetuity

Page 128: Mastering Capitalism - The Capitalism Capability

ExitInternational Football Association: The Home of the Global Cup Games

Page 129: Mastering Capitalism - The Capitalism Capability

International Football Association Exit

At $250 mm valuation make partial exit to strategic or financial at pre IPO to cash out. After increasing valuation to $1 bn then full cash out at IPO.

Page 130: Mastering Capitalism - The Capitalism Capability

Exit TimelineInternational Football Association: The Home of the Global Cup Games

Page 131: Mastering Capitalism - The Capitalism Capability

International Football Association Exit Timeline

At $250 mm valuation make partial exit to strategic or financial at pre IPO to cash out. After increasing valuation to $1 bn then full cash out at IPO.

Partial Exit to Strategic or Financial: Year 2 to 3

Exit at IPO: Year 4 to Year 5

Page 132: Mastering Capitalism - The Capitalism Capability

Case Study: D-League FootballCapitalism: The Capitalism Capability

Page 133: Mastering Capitalism - The Capitalism Capability

Syndication Mapping™Based Upon Work Breakdown Structure and Financial

Model & Valuation

Cash Stars

Cash Cows

Commodities

Unicorns

Growth Rate

Cash Growth

Page 134: Mastering Capitalism - The Capitalism Capability

Products for the Capital Markets™Securities

Syndications

Cash Flowing & Scaling

Market Multiple

Definiteness of Cash Flows

Cash Flowing Niche

Page 135: Mastering Capitalism - The Capitalism Capability

D-League Football™The Official D-League of Professional Football™

Michael Herlache MBAManaging Director, Holdings Industries

April 20, 2015

Page 136: Mastering Capitalism - The Capitalism Capability

D-League Football: The Official D-League of Professional FootballI. Vision

II. Capabilities

III. Work Breakdown Structure

IV. Database Architecture

V. Database Breakdown

VI. Database Breakdown Financial Modeling

VII. Database Breakdown Valuation

VIII. Subdatabase Conversion

IX. User Group Architecture

X. Message Architecture

XI. Communication Architecture

XII. Process Architecture

XIII. Platform Customization

XIV. Monetization

XV. Monetization Timeline

XVI. Exit

XVII. Exit Timeline

Page 137: Mastering Capitalism - The Capitalism Capability

VisionD-League Football: The Official D-League of Professional Football

Page 138: Mastering Capitalism - The Capitalism Capability

D-League Football Vision

Phase I: Initial sale of television rights to major network (discounted valuation)Phase II: Teams sold to current NFL owners or former NFL players and stadiums bookedPhase III: Fully staffed teams, games played and broadcastedPhase IV: Merchandise and additional sale of television rights to major network (full valuation)

Page 139: Mastering Capitalism - The Capitalism Capability

CapabilitiesD-League Football: The Official D-League of Professional Football

Page 140: Mastering Capitalism - The Capitalism Capability

D-League Football

Regular season games to playoff & championship

D-League Football

Team Owners

Markets

Run process to sell and executeon the delivery of TV rights tomarkets

Television Networks

Team Players

Page 141: Mastering Capitalism - The Capitalism Capability

Work Breakdown StructureD-League Football: The Official D-League of Professional Football

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D-League Football: Work Breakdown Structure

Page 143: Mastering Capitalism - The Capitalism Capability

MilestonesD-League Football: The Official D-League of Professional Football

Page 144: Mastering Capitalism - The Capitalism Capability

Liquidity Event Timeline

Seed Series A Series B Series C Acquisition IPO

TV Contract Growth Timeline

1 2 3 4

Multiple Expansion Timeline (TV Rights Value)

$25 mm $75 mm $125 mm $300 mm $500 mm $1 bn

Valuation Timeline

$1,000,000 $50,000,000 $100,000,000 $500,000,000 $1,000,000,000 $3,000,000,000

t=0

Desired End State (Vision)

D-League Football does not require external financing to sell the TV rights for regular season games, playoffs & championship. Liquidity events will include partial sale privately or publicly (IPO)

t=0

Desired End State (Vision)

User and viewer growth will be within 50% of the NFL

t=0

Desired End State (Vision)

D-League Football’s valuation pre contract is $1 mm, after the first contract the valuation goes up to $50 mm and then up from there

t=0

Desired End State (Vision)

D-League Football’s initial contract value is targeted to be $25 mm

D-League Football: Milestones

Page 145: Mastering Capitalism - The Capitalism Capability

Database ArchitectureD-League Football: The Official D-League of Professional Football

Page 146: Mastering Capitalism - The Capitalism Capability

D-League Football Database Architecture

Regular season games to playoff & championship

D-League Football

Run process to sell and executeon the delivery of TV rights tomarkets

25 Television Network database

SIC code: Television Network

220 mm individuals database

1 k NFL Team Owners & Former Players database

SIC code: Sports Franchise

220 mm individuals database

Page 147: Mastering Capitalism - The Capitalism Capability

Message ArchitectureD-League Football: The Official D-League of Professional Football

Page 148: Mastering Capitalism - The Capitalism Capability

D-League Football: Message Architecture

Football teams competing in a whole new and exciting league!• There are many different leagues that are meant to enhance the experience and exposure of a sport in a country. The

official Football D-League is something that will be extremely similar to the NFL, but this is going to have different rules and seasons for the teams involved.

Team owners will benefit greatly from this new league!• Team owners can always take advantage of having another major sporting event to gain more sponsorships and get

more merchandise sold. This is going to increase their revenue significantly and that is very important in order to maintain their team at top levels.

Players are going to benefit greatly from the increased exposure!• If you want to be able to make the most out of your professional career, you need to look for as many opportunities to

showcase your talents as you can find. This is going to allow you to find more sponsorship deals and earn more during the best years of your career.

Football fans now have another league that they can check out in order to get the more football thrills!• You can get your ticket for this exciting league and you will be able to get your Football fix with new seasons that will

keep you involved in the sport for much longer periods of time. This is something that most fans dreams of being able to do because it gives them more time to get to know how their favorite players are performing too.

The D-League is here to stay and it will bring the sport to a whole new level!

Page 149: Mastering Capitalism - The Capitalism Capability

Communication ArchitectureD-League Football: The Official D-League of Professional Football

Page 150: Mastering Capitalism - The Capitalism Capability

D-League Football: Communication Architecture

Database Lead Communication:

Email Based

Database Lead Communication:

Email Based

Paid User Communication:

Email Based

• Football teams competing in a whole new and exciting league!• There are many different leagues that are meant to enhance the experience and exposure of a sport in a

country. The official Football D-League is something that will be extremely similar to the NFL, but this is going to have different rules and seasons for the teams involved.

• Team owners will benefit greatly from this new league!• Team owners can always take advantage of having another major sporting event to gain more

sponsorships and get more merchandise sold. This is going to increase their revenue significantly and that is very important in order to maintain their team at top levels.

• Players are going to benefit greatly from the increased exposure!• If you want to be able to make the most out of your professional career, you need to look for as many

opportunities to showcase your talents as you can find. This is going to allow you to find more sponsorship deals and earn more during the best years of your career.

• Football fans now have another league that they can check out in order to get the more football thrills!• You can get your ticket for this exciting league and you will be able to get your Football fix with new

seasons that will keep you involved in the sport for much longer periods of time. This is something that most fans dreams of being able to do because it gives them more time to get to know how their favorite players are performing too.

• The D-League is here to stay and it will bring the sport to a whole new level!

• It's a pleasure. Our Group would like to discuss the sale of television rights/ a football franchise with you. We are syndicating a D-League for professional football that is modeled off of the NFL.

• Our Group would like to discuss the renewal of the television rights for D-League football

Page 151: Mastering Capitalism - The Capitalism Capability

Process ArchitectureD-League Football: The Official D-League of Professional Football

Page 152: Mastering Capitalism - The Capitalism Capability

D-League Football: Process Architecture

Pay for D-League Football segment already?

Yes

No

Receive an initial consultation email with call to action

Receive a returning customer email with call to action

Page 153: Mastering Capitalism - The Capitalism Capability

Platform CustomizationD-League Football: The Official D-League of Professional Football

Page 154: Mastering Capitalism - The Capitalism Capability

D-League Football: Platform Customization

Page 155: Mastering Capitalism - The Capitalism Capability

MonetizationD-League Football: The Official D-League of Professional Football

Page 156: Mastering Capitalism - The Capitalism Capability

D-League Football Monetization

Phase I: Initial sale of television rights to major network (discounted valuation); $50,000,000 per year (3 year contract)Phase II: Teams sold to current NFL owners or former NFL players and stadiums booked; $2,000,000 per franchisePhase III: Fully staffed teams, games played and broadcasted (Ticket sales)Phase IV: Merchandise and additional sale of television rights to major network (full valuation); $250,000,000 per year (3 year contract)

Page 157: Mastering Capitalism - The Capitalism Capability

D-League Football Vision

Phase I: Paid Segments (one by one basis), $1,000 for one minute, $2,000 for two minutesPhase II: Membership (quarterly coverage $4,000 per year, monthly coverage $15,000 per year, daily coverage package $100,000 per year)Phase III: Sponsored Online Broadcast (continuous)Phase IV: Sponsored Channel Broadcast (continuous)

Page 158: Mastering Capitalism - The Capitalism Capability

Monetization TimelineD-League Football: The Official D-League of Professional Football

Page 159: Mastering Capitalism - The Capitalism Capability

D-League Football Monetization

Phase I: Initial sale of television rights to major network (discounted valuation); $50,000,000 per year (3 year contract)Phase II: Teams sold to current NFL owners or former NFL players and stadiums booked; $2,000,000 per franchisePhase III: Fully staffed teams, games played and broadcasted (Ticket sales)Phase IV: Merchandise and additional sale of television rights to major network (full valuation); $250,000,000 per year (3 year contract)

Phase I: Year 1 to Year 3

Phase II: Year 1

Phase III: Year 1 to Year 3

Phase IV: Year 4 to Perpetuity

Page 160: Mastering Capitalism - The Capitalism Capability

ExitD-League Football: The Official D-League of Professional Football

Page 161: Mastering Capitalism - The Capitalism Capability

D-League Football Exit

At $250 mm valuation make partial exit to strategic or financial at pre IPO to cash out. After increasing valuation to $1 bn then full cash out at IPO.

Page 162: Mastering Capitalism - The Capitalism Capability

Exit TimelineD-League Football: The Official D-League of Professional Football

Page 163: Mastering Capitalism - The Capitalism Capability

D-League Football Exit Timeline

At $250 mm valuation make partial exit to strategic or financial at pre IPO to cash out. After increasing valuation to $1 bn then full cash out at IPO.

Partial Exit to Strategic or Financial: Year 2 to 3

Exit at IPO: Year 4 to Year 5

Page 164: Mastering Capitalism - The Capitalism Capability

Case Study: AsiansbookCapitalism: The Capitalism Capability

Page 165: Mastering Capitalism - The Capitalism Capability

Syndication Mapping™Based Upon Work Breakdown Structure and Financial

Model & Valuation

Cash Stars

Cash Cows

Commodities

Unicorns

Growth Rate

Cash Growth

Page 166: Mastering Capitalism - The Capitalism Capability

Products for the Capital Markets™Securities

Syndications

Cash Flowing & Scaling

Market Multiple

Definiteness of Cash Flows

Cash Flowing Niche

Page 167: Mastering Capitalism - The Capitalism Capability

Case Study: FameLinkedCapitalism: The Capitalism Capability

Page 168: Mastering Capitalism - The Capitalism Capability

Syndication Mapping™Based Upon Work Breakdown Structure and Financial

Model & Valuation

Cash Stars

Cash Cows

Commodities

Unicorns

Growth Rate

Cash Growth

Page 169: Mastering Capitalism - The Capitalism Capability

Products for the Capital Markets™Securities

Syndications

Cash Flowing & Scaling

Market Multiple

Definiteness of Cash Flows

Cash Flowing Niche

Page 170: Mastering Capitalism - The Capitalism Capability

Case Study: NationLinkedCapitalism: The Capitalism Capability

Page 171: Mastering Capitalism - The Capitalism Capability

Syndication Mapping™Based Upon Work Breakdown Structure and Financial

Model & Valuation

Cash Stars

Cash Cows

Commodities

Unicorns

Growth Rate

Cash Growth

Page 172: Mastering Capitalism - The Capitalism Capability

Products for the Capital Markets™Securities

Syndications

Cash Flowing & Scaling

Market Multiple

Definiteness of Cash Flows

Cash Flowing Niche

Page 173: Mastering Capitalism - The Capitalism Capability

ContactCapitalism: The Capitalism Capability

Page 174: Mastering Capitalism - The Capitalism Capability

Contact

Michael Herlache MBAEmail: [email protected]: 979.219.7520

Page 175: Mastering Capitalism - The Capitalism Capability

ContactCapitalism: The Capitalism Capability

Page 176: Mastering Capitalism - The Capitalism Capability

Contact

Michael Herlache MBAEmail: [email protected]: 979.219.7520