ASBDC Technology Counselors
Certification – Prep Session #2
August 5, 2010
Fall 2010
Andrew J. Sherman, Esq.
Jones Day
51 Louisiana Avenue, N.W.
Washington, D.C. 20001
202-879-3686
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Andrew J. Sherman –
Today’s Moderator
Mr. Sherman is a partner in the Washington, D.C. office of Jones Day with over 2,400 lawyers
worldwide.
He is the author of 17 books on business growth, capital formation and the leveraging of intellectual
property. His eighteenth (18th) book, Road Rules Be the Truck.
Not the Squirrel.
(http://www.bethetruck.com) is an inspirational book which was published in the Fall of 2008. He has
appeared as a guest and a commentator on all of the major television networks as well as CNBC’s
“Power Lunch,” CNN’s “Day Watch,” CNNfn’s “For Entrepreneurs Only,” USA Network’s “First Business,”
and Bloomberg’s “Small Business Weekly.” He has appeared on numerous regional and local television
broadcasts as well as national and local radio interviews for National Public Radio (NPR), Business
News Network (BNN), Bloomberg Radio, AP Radio Network, Voice of America, Talk America Radio
Network and the USA Radio Network, as a resource on capital formation, entrepreneurship and
technology development.
He has served as a top-rated Adjunct Professor in the Masters of Business Administration (MBA)
programs at the University of Maryland for 22 years and at Georgetown University for 14 years where
he teaches courses on business growth strategy.
He has served as General Counsel to the Young Entrepreneurs’ Organization (YEO) since 1987. In 2003,
Fortune magazine named him one of the Top Ten Minds in Entrepreneurship and in February of 2006,
Inc. magazine named him one of the all-time champions and supporters of entrepreneurship.
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Topics for Today’s Call
– 5 Minute Recap from June 9th Prep Session
– Section Takeaway Reviews
– 45 Minute Q&A
– Exam Overview / Process
– 5 Minute Summary
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Section Takeaways for the Exam –
Emerging and Technology Trends
For instance:
Imagine that the exam’s case studies and essay questions will seek your
input on the impact of a new technology application to one of the ASBDC
clients and their product development:
What practical and strategic advice will you offer that can yield a positive
result for your client? Be able to support your approach…
Cleantech trend #’s 1, 8, 9 & 10 are worth further analysis for the exam.
Emerging trend #’s 1,4,5 & 7 are worth further analysis for the exam.
The meaning of “worth further analysis” is to know the basic goals behind
the technology…
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Clean Tech Trends
1.
Private capital growth recovers, record fund year (cleantech outpaced software and biotech
private equity/VC investment in last half of 2009)
2.
Clean economies become the new space race – (global engagement)
3.
Electric cars take the back seat to smart mobility – (more master planning)
4.
Resource constraints beyond carbon rise to the fore (metals, ores, helium & oil)
5.
Commodity tradeoff debates intensify (Water-energy, land-energy, land-water, carbon-water)
6.
Energy efficiency, driven by ICT (Information Communication Technology), driving greater
productivity
7.
Marketing suddenly matters (cogent value propositions be a key differentiator)
8.
Buffett leads the super rich into cleantech (GE, BYD – Chinese electric car maker and Burlington
Northern Santa Fe – low carbon footprint transporter)
9.
Acquisitions and consolidations accelerate (Wind and solar in China and Germany) (Panasonic
acquisition of Sanyo – solar cells and EV battery maker)
10.
The rise of waste-to-energy, geothermal and aquaculture applications will grow
Insights Attributed to: Nicholas Parker, Executive Chairman,
Cleantech Group
Section Takeaways for the Exam –
Opportunity and Viability Analysis
For instance:
Imagine that the exam’s case studies and essay questions will seek your
input on an entrepreneur’s dilemma – should they take the plunge and start
a company or not.
Your analysis, based on exam provided criteria will need to be supported.
The framework for such support will come from the topics in this section.
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Section Takeaways for the Exam –
Preparing the Business Plan
For instance:
Imagine that the exam’s case studies and essay questions will seek your
input on an entrepreneur’s dilemma – should they take the plunge and start
a company or not.
Your analysis, based on some exam provided criteria will need to be
supported. The framework for such support will come from the topics in
this section.
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Section Takeaways for the Exam –
Sensitivity and Cash Flow Analysis
As consultants, it is essential to be able to review, assess and counsel a client
so their financial projections are in tune with reality. Too many times overly
optimistic financial projections yield severe business dilemmas for the
entrepreneur.
For instance:
Imagine that the exam’s case studies and essay questions will seek your
review on the viability of a financial model or series of financial projection
assumptions. Assume that while you can never have too much information,
you at some point will need to advise your client of the viability based on
what you have in front of you.
Your analysis, based on some exam provided criteria will need to be
supported. The framework for such support will come from the topics in
this section.
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Ten Questions All Types of Investors Ask
Leaders of Growing Companies
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How much can I make?
How much can I lose?
What is my exit strategy from this deal?
Who else says this deal is viable? (Risk mitigation/credibility)
Does the founder (and others) already have resources at risk? (Skin in the game)
What other value (beyond money) can I bring to the table?
Can I trust this management team?
Is this company’s target market large, growing (not stagnant or shrinking), and
reachable?
Does the company have (or will it have) a sustainable competitive advantage – as a
result of either operational effectiveness or its strategic positioning or its
intellectual capital or other barriers to entry?
Is the company’s business, revenue, and profit model credible, verifiable, efficient,
and sustainable?
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Section Takeaways for the Exam –
Capital Formation Strategies
As advisors, it is critical to understand how and why
early stage technology companies need capital for
growth and the advantages and disadvantages of
each capital formation strategy.
For Instance:
The exam is likely to ask you for recommendations
to clients in this area, matching the force of capital
with the proposed allocation of proceeds.
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Section Takeaways for the Exam –
Intellectual Property
Virtually all technology companies are driven by
one or more varieties of intellectual capital, some
of which is eligible for protection under various
intellectual property law strategies.
For Instance:
Although you are not expected to be a lawyer per
se, as a certified technology counsellor, you need to
be able to recognize intellectual property law issues
and challenges and direct clients to the appropriate
resources.
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Section Takeaways for the Exam –
Technology Commercialization Strategies
Many entrepreneurial (and especially inventors) will
have the skill sets to build a product, but may be
lacking the expertise to develop strategies for
bringing their products to the marketplace, either
alone or with a partner.
For Instance:
The exam may ask you to help a client formulate a
technology commercialization strategy – once the
product and its target market are clearly identified.
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The Exam Structure
Below is the structure for the 2008 Examination for Cohort #1 in
Chicago.
• Multiple Choice – 32 Questions worth ½ point each – 16% of exam
total
• Short Essay – 3 Questions worth 8 points each – 24% of exam total
• Case Studies – 2 Questions worth 30 points each – 60% of exam
total
• We will utilize a very similar approach for this examination.
• The examination style reflects real world situations and a “from the
trenches” approach.
• The case studies and short essays especially focus on the “what
would you suggest as their advisor” approach.
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The Exam Structure (cont’d)
The goal of the exam is to learn if your counseling ability and
application of core knowledge is primed for client application.
That is why the vast majority of the test is based on what you write, and
how convincingly you write it.
Supporting your positions is key. Even if we disagree with the approach,
your interpretation and ability to support it is what matters.
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The Exam Process
In 2008 the exam was all handwritten over a four hour period.
In 2010, the exam will be given at a test center and will be electronic.
The testing software will be ExamView and will be comprised of two
sections.
• The multiple choice section will be its own independent section
• The short essay and case study areas will be typed in to a computer
and submitted at the end of the test.
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