M&M Growth Partners

M&M GROWTH PARTNERS

Value Creation ProcessMatchTargeting entrepreneurial growth companies

Introduction to M&M Growth Partners An ICT focused Growth Capital evergreen fund

DevelopCo-develop with Owners, Board and Management

ProsperValue creation enabled

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M&M Growth Partners

IntroMEET OUR DEDICATED TEAM: WWW.MMGP.FI

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M&M Growth Partners

IntroSOME PORTFOLIO COMPANIES WWW.MMGP.FI

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M&M Growth Partners

Match

Entrepreneurship• Clear entrepreneurship or

otherwise balanced founding team

• Owners have a key operative role

• Serial entrepreneurs or family owned

We typically do not invest in• Seed stage companies• Companies with high technology risk• Hardware manufacturing• Companies requiring several future funding rounds to sustain

operations• Turnaround companies / scenarios• Blue ocean or red ocean scenarios with heavy capex

Growth• Team with ambition to

grow• Often but not necessarily

acquisitions assist organic growth

• Clear advantage in selected domains

Financial Position• Profitable• Low capital expenditure

requirements

Business Model• Significant sales• Both service and product

businesses• In product businesses: The

product is in or quickly reaching mature stage

• Category leader in the industry value chain

• Internal startups are ok

Industries• Focus in software/ICT• All ICT subsectors and also

across industries, such as health care, where ICT or digitalization plays a major role

• Special interest and expertise in Analytics, AI, Robotics, DevOps, Testing, Security and development tools.

OUR TARGET COMPANIES

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Develop

VALUE CREATION ENABLERS

VALUE CREATION DRIVERS

STRATEGYStrategy Execution: Board/ Governance, KPIs.

Revenue Growth Margin improvement Capital efficiency

HR Legal Finance IT systems Quality

DD ON VALUE CREATION

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DevelopVALUE CREATION PROCESS

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1. Linear (HC) Acceleration

2. Non-Linear (nonHC) Acceleration

4. Company GroupValue Creation

3. MultipleExpansion

= At Business Unit level= At Group level

2. Non-linear Acceleration:M&A and Partnerships. Serial Acquirer and Divestor. Increase bolt-on and using partnerships pre M&A to increase success rate of strategic fit.

3. Multiple Expansion:Increase the multiple w/ systematic focus on following axis: 1. Talent & thought leadership2. Client base & type of engagement3. International success4. Growth 5. Operational Excellence

1. Linear Acceleration:1. Clarity (OKR, BSC): Limit Number of KPIs.2. Action Plan: Rolling Quarter Plan (this Q, Next Q)

per BU, MWB). 3-year Roadmap.3. Incentives aligned w/ Company objective4. M&M GP Operations team’s hands-on support5. Go-2-market

4. Company Group level orchestrates Acceleration

Process and offers key parenting services, e.g., capital, recruitment, etc.

M&M Growth Partners

Develop

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VALUE CREATION PROCESS

M&M Growth Partners

Develop

1. LINEAR ACCELERATION: BOARD IMPACT ON VALUE CREATION

McKinsey: “The comments of the respondents suggest two key differences. First, nonexecutive directors of public companies are more focused on risk avoidance than on value creation (Exhibit 2). This attitude isn’t necessarily illogical: suchdirectors are not financially rewarded by a company’s success, and they may lose their hard-earned reputations if investors are disappointed. Second, our respondents noted a greater level of engagement by nonexecutive directors at PE-backed companies. The survey suggested that PE directors spend, on average, nearly three times as many days on their roles as do those at public companies (54 versus 19).”

There are some positive outlier Public Company Boards that have adopted PE methodologies and time/ effort spent, e.g., participating in MWBs with the Company Mgmt Team.

https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-voice-of-experience-public-versus-private-equity9

M&M Growth Partners

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1. LINEAR ACCELERATION: EXPECTATIONS OF PE IMPACT

https://www.bcg.com/de-de/publications/2013/leadership-talent-private-equity-ceo-partners-quest-value.aspx 10

M&M Growth Partners

Develop2. NON LINEAR ACCELEARION: M&A PERFORMANCE

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M&M Growth Partners

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2. NON-LINEAR ACCELEARION: FAILED ACQUISITIONS

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M&M Growth Partners

Develop4. PARENTING: ADDING OR DESTROYING VALUE?

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M&M Growth Partners

Develop

Company Specific Industry/Domain SpecificOpportunistic, Time Window

Based

Talent pool/mix, team

Capital efficiency, synergies

Market positioning

Transformational situations

Synergies

Trade sale, IPO market windows

Bidding situations

Product market fit, product gaps

Hype cycle positioning

Blue Ocean/Red Ocean situations

Category leadership

Windfall situations

SELL-SIDE VALUE DRIVERS

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M&M Growth Partners

Prosper

We live with our Portfolio Companies by sharing similar scenarios for long term development. As we are an evergreen investor there is no inherent need for exit or other major changes in the ownership. We are more than happy to share a long ownership with profitable quality companies in our portfolio.

Prosper together

The most important thing we want to share with our portfolio companies is the Value Creation Roadmap (VCR) with concrete measurable tangible milestones and actions to achieve them. We will form this plan together with the Company. Our ultimate goal is to accelerate growth using the VCR as a guide.

Common Goal

We appreciate mutual respect in everything we do. We are very active in supporting day to day operations as needed and agreed with the entrepreneurs/owners.

Culture and day to day working mode

PROSPER: THE COMMON GOAL