1. Is There a Business Track? IP Provider Life Cycle Patent Cabinet Gris Design and Reuse SaucierAvocats.com Yvon Gris Gabriele Saucier Luc Saucier
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5. Growing Use of Semiconductor IP Source: Infinitedge Growth In the Number of SIP Blocks Per Design Putting the Toothpast Back in the Tube! IP/Soc - March 2010 > 50% of Today’s Semiconductor Is Third Party IP (Avg of 50 Blocks)
23. Embedded Systems Evolution Drives Acquisitions Source: InfinitEdge 1990 2000 2010 1980 Discrete Analog Discrete Software Tools MPU’s CPU’s Discrete RF Wired -> Wireless Drives Demand for Integrated RF EDA Enables Custom IC Design ASIC ASSP IP Industry Evolves Programmable Fabrics Emerge FPGA Digital IP EDA FPGA Tools Analog IP RF IP Multi-Cores Cloud Computing Drives Demand for Compute Power Multi-Core Tools LINUX Commercial RTOS Programmability Required to Reduce SKU Count & Differentiate KiloFlops MegaFlops GigaFlops Performance Re-aggregation of Software and Semiconductor
24. Embedded Systems Evolution Drives Acquisitions: Arc & Virage $42M Virage Logic ($47M) Arc ($24M) Configurable processor IP Sonic Focus ($1.2M) Digital Sound IP VAutomation IP Precise Software Real-time OS MetaWare C compiler Alarity Firmware Teja ($900K) Multiprocessor software Tenison Technology ($500K) SoC design software InChip Logic IP Ingot Systems Design services Impinj Memory IP NXP (CMOS IP Group) IP Infrastructure 2002 - 2007 - 2008 - 2009 - $5M $6.5M $3.5M $1.6M $5.2M $20M
25. Embedded Systems Evolution Drives Acquisitions: Synopsys Synopsys ($1.35B) Coware Codesign EDA Software Virage Logic Memory IP MOSAID Memory IP CHIPit Business Unit (ProDesign) Verification Solutions Cadis EDA Software Viewlogic Systems EDA Software Co-Design Automation EDA Software inSilicon Connectivity IP Numerical Technologies Design For Manufacturing (DFM) Accelerant Networks Connectivity IP Analog Design Automation EDA Software Monterey Design Systems EDA Software Cascade Semiconductor Solutions Digital IP Integrated Systems Engineering Infrastructure Software LEDA Design Mixed Signal IP Nassda Corp. IC Planning HPL Technologies Design For Manufacturing (DFM) Virtio Corp. Virtual Emulation Sigma-C Lithography Simulation ArchPro EDA Sotware Sandwork Design Verification Software Synplicity FPGA EDA Software VaST Virtual Prototyping MIPS C.I / MIPS Analog IP 1994 - 2003 - 2004 - 2006 - 1997 - 2002 - 2007 - 2008 - 2009 - 2010 - 2005 - ChipIdea Analog IP $147M $22M $289M $223M
26. Embedded Systems Evolution Drives Acquisitions: Cadence & Mentor $315M $90M Cadence ($880M) Denali Memory IP Mentor Graphics ($800M ) Sierra Design Automation High-performance P&R solutions Embedded Alley Android and Linux systems Descon PDM Agility Design Solutions C Synthesis Palmchip Parallel and Serial ATA IPs Verisity Verification process automation Silicon Perspective Virtual prototyping Clear Shape Design for manufacturing (DFM) $315M ChipEstimate IC planning Aptix Rapid prototyping 2000 - 2005 - 2008 - 2010 - 2001 - 2004 - 2007 - 2009 -
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30. D&R Service Network DR. DAVID YOUNG Chief Executive & Founder of Shield Biography From a start in strategy consulting in 1981, Dr. Young moved into pan-European M&A. He spent four years in Paris before transferring to New York in 1985, where he joined Goldman Sachs' M&A Group. From 1989–1994, he built Wasserstein Perella's German business, with a developing focus on pharmaceuticals and chemicals He subsequently headed the European Healthcare M&A group of Merrill Lynch. 'Lift Off! Selling your business for more than it's worth, honestly '
31. Fast-paced controlled auction process within four months Business and process review Weeks 1-6 Prepare marketing materials Weeks 1-6 Broad marketing approach (10-30) Weeks 6-10 Selected buyer due diligence (Max. 6) Weeks 11-15 Confirmatory due diligence and negotiations (2-3) Weeks 16-18 Preparations Marketing Due diligence Negotiations 1. Clarify objectives/ constraints of all parties 2. Help secure maximum management cooperation 3. Evaluate buyers and prepare buyer list 4. Gather intelligence on potential buyers' motivations/concerns 5. Work with management to "groom" business for sale – Understand business – Financial adjustments – Quantify improvement and growth potential 6. Assist in anticipating/ clearing sale impediments 7. Perform preliminary valuation from buyers' standpoint 8. Advise on vendor due diligence 9. Devise buyer-driven marketing strategy 10. Test marketing? 1. Develop key selling points 2. Review with management and vendors 3. Produce marketing materials – Teaser (presentation?) – Descriptive memo – Management presentation 4. Prepare procedure letter 5. Finalise buyer list 1. Teaser presentations 2. Send Confidentiality Agreement 3. Send Descriptive memorandum and procedure letter 4. Continue gathering market feed-back 5. Assist in preparation and rehearsal of management presentations, Q&A 6. Receive preliminary indications of interest 1. Evaluate final bids and SPA mark-ups to help select finalists 2. Coordinate confirmatory due diligence 3. Help negotiate remaining deal/contractual points 4. Handle exclusivity requests 5. Expedite signing 1. Rank bids based on price, terms and conditions 2. Organise due diligence including management presentations, data room and plant visits 3. Coordinate responses to buyers’ questions 4. Distribute draft Sale & Purchase Agreement (SPA) 5. Receive final binding bids from short-listed bidders 6. Confirm financing arrangements
32. Due diligence investigation Ÿ Anticipate buyers' concerns – Risk analysis – Address value detractors Ÿ Anticipate due diligence findings – Consider vendor due diligence – Avoid contradictions and negative surprises by preparing detailed Q&A Ÿ Control due diligence process – Prepare and coordinate information flow – Beware of "bid high, buy low" tactics: avoid negative newsflow – Preserve competitive pressure Ÿ Influence buyers' pricing – Armour - plate standalone and synergy projections – Restate to present true, sustainable earnings – Quantify growth avenues – Highlight sources of strategic value – Educate buyers about "right" pricing approach Ÿ Assist buyers' decision making – Catalyst in internal process – Anticipate people issues – Develop constructive relationships Ÿ Add credibility to process – Data/Process clarity – Guarantee fair treatment – Contribute reputation for objectivity/ integrity Protect downside Maximise upside
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