Financial Opportunities in Consulting
Indiana University
Select Career Opportunities Orientation Program
September 14, 2004
Presented by:
Mike Newell
Matt Vold
Lindsey Whitehead
www.intecap.com
www.crai.com
Introduction to InteCap/CRA
 InteCap is a subsidiary of Charles River Associates (“CRA”), an
international economic consulting firm with 18 offices worldwide
and over 700 employees.
 First consulting firm to launch an integrated practice dedicated to
helping companies manage and extract value from their
intellectual property
 Areas of expertise include Intellectual Property, Commercial
Damages, Valuation, Securities Fraud, Anti-trust, Business
Strategy, Transfer Pricing and Mergers and Acquisitions.
 InteCap’s consultants have backgrounds in accounting, finance,
economics, engineering, marketing and statistics
 Clients include Fortune 500 corporations, high-tech start-ups,
preeminent law firms, government entities, leading universities
and providers of capital involved in “IP-rich” transactions
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Presenter Backgrounds
 Mike Newell, Director
° Graduated with a B.S. in Mechanical Engineering from University of Notre
Dame (1990)
° Worked as a Capital Project Manager in the Refining & Marketing Departments
of Amoco Oil Company
° MBA from University of Chicago’s Graduate School of Business in Finance,
Strategy, and Operations Mgmt (1996)
° Principal of Tangram Partners, a private equity firm
° Joined InteCap in February 2001
 Matt Vold, Analyst
°
°
Graduated with a B.S. in Finance and Accounting from Indiana University
Joined InteCap in June 2003
 Lindsey Whitehead, Analyst
°
°
Graduated with a B.S. in Finance and Accounting from University of Dayton
Joined InteCap in September 2003
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Introduction to Financial Consulting
 Who are financial consultants?
 What do financial consultants offer their
clients?
 In what types of projects are financial
consultants engaged?
 What are typical tasks performed during the
course of an engagement?
 Self-assessment
 Financial consulting as a career platform
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Who are Financial Consultants?
Financial Services
Litigation Support
Investment Consulting Services
Intellectual Asset Management
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What do Financial Consultants Offer
Their Clients?
 Specialized expertise
 Outsourcing/resources
 Fresh perspective and objective third-party
opinion
 Quick turn-around and focused attention
 Structured solutions to unstructured problems
 The “why” behind the numbers
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In What Types of Projects are
Financial Consultants Engaged?
Litigation What the value should have been
Valuation What the value is
Strategy What the value could be
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What are the Results/Deliverables of
These Projects?
Litigation Expert report, analysis, and testimony
Written report, analysis, and
Valuation presentation
Written assessment, recommendation
Strategy and implementation
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Litigation Case Study
Patent Infringement Damages
The Infringers
The Patent
Infringer 1
A Better
= Mousetrap!
Infringer 2
Infringer 3
What is the economic injury
to the patent owner?
Lost Sales
Depressed Prices
Opportunity Cost
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Litigation Case Study
The Role of an Analyst
 Participate in team meetings to discuss overall
approach to assignment
 Review client documents
 Perform industry research
 Research and compare established royalty
rates
 Build financial models
 Perform quality control
 Create trial exhibits
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Valuation Case Study
Trademark Valuation for Tax Purposes
 Retained by a global manufacturer of
household appliances to perform a trademark
portfolio valuation
Total Enterprise Value
100%
56%
Total Value of Intangibles
56%
Other
Intangibles
Value
32%
Fair
Market
Value
24%
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Valuation Case Study
The Role of an Analyst
 Participate in brainstorming discussions with
team members
 Customize questionnaires for client interviews
 Research comparable companies in the
industry
 Forecast cash flows and prepare a cost of
capital analysis
 Assist in the preparation of a valuation
report/narrative
 Create graphical presentations of financial
analysis
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Strategy Case Study
Commercialization of Early Stage Technology
Client dilemma
Strategic Options
Form a NEWCO?
How can we commercialize
our intellectual property?
Exclusively License?
Non-Exclusively License?
Partner?
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Strategy Case Study
The Role of an Analyst
 Participate in initial kick-off meetings with
client
 Research potential technology applications
and markets
 Develop valuation analysis
 Participate in commercialization strategy
brainstorming discussions with team members
 Assist in communication of findings with client
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Self-Assessment
Would you Enjoy Being a Financial Consultant?
Do you prefer . . .
 Structured environment?

Unstructured environment?
 Finance only?

 Concentrate in a single
industry?

Finance, accounting, economics,
marketing?
Variety of industries?
 Compartmentalized work?

Team work?
 Functional work?

Project work?
 Corporate culture?

Consulting culture?
Other financial career
Financial consultant
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Consulting as a Career Platform
 Various skills acquired as a financial
consultant
 CPA, CFA, MBA opportunities
 Client contact and industry exposure
 Foundation for many other careers
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Consulting as a Career Platform
Examples of InteCap Careers
Consulting: Managing Director, InteCap
Investment Banking: Managing Director, Bear Stearns
Marketing: Brand Manager, Procter & Gamble
Sales: Account Executive, Warner Lambert
Graduate School: MBA - Kellogg, Chicago, UCLA,
Columbia, etc.
Law - Michigan, UVA, Wisconsin, etc.
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In Summary...
Financial consultants provide:
Clients with…
 expertise and objectivity
 creative solutions
 clarity and structure
Consultants with…
 use and development of a wide range of skills
 broad career platform
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