1. {
Synergistic Leveraged
Partnerships
SLP’s
Presented By:
Rick Fine
MagPartners

2. The portfolio managers utilize two
fundamental engines for their growth:
 Providing necessary capital to facilitate
the goals of the companies they invest in
 Closing down and reducing
nonperforming divisions, assets, and
personnel
Traditional Model

3.  The business model that is not evident is
what I call Synergistic Leveraged
Partnerships: SLP’s
 SLP’s are the creation of commercial
relationships with other companies to
cooperate and provide to one another
their core strengths, as it directly relates
to the other companies’ deficiencies
The Opportunity- SLP’s

4. { {RDI
 Operationally excellent in
refurbishment
 Direct sales channel into
education market
 Continual need of additional
IT assets
BFP (Example Partner)
 Weak in refurbishment
 Poor sales channels; currently
sells to wholesalers
 Steady supply of IT assets
SLP- Example
RDI, a $150 million annual revenue
company:
BFP, an $85 million annual revenue
IT Asset disposition company:

5.  Therefore, the parties come
together in an SLP:
 BFP provides the assets
 RDI provides the refurbishment and sales
 Both parties share the additional realized
margin of 20 to 40 points (which would
have traditionally gone to the
wholesalers).
SLP-Partnership
and Profit

6.  Low Sales Volume; Strong Product
 Infrastructure
 Engineering Services
 Better Logistics
 Necessary Certifications to Obtain Specific
Contracts
Other SLP Examples:

7. { {Acquisition
 Pay EBITDA multiple to
acquire target
 Price premium is paid to
acquire
 Constrains cash flow
 ROE decreases
SLP’s
 Obtain the deficiency through
the SLP
 Only administrative costs
need to be deployed
 Cash flow increased through
consignment
 ROE increases
Traditional Growth Method

8.  CEO’s lack the necessary time for the
formation of SLP’s
 Business Development personnel
largely sell only the core competency
of their company
 Equity Funds, Investment Bankers,
and Management Consultants do not
offer this service
Ignored Opportunity

9.  There is no company that would not
benefit from the creation of SLP’s, as they
preserve both capital and cash flow
Value Proposition

10.  Creative thinking and an outside perspective
 Understanding deficiencies
 How do they impact profitability/efficiency
 Best way(s) to alleviate through SLP’s
 Understanding strengths
 How to further utilize and grow through SLP’s
SLP Execution

11.  Seek out companies to partner with and
outline the basic deal structure
 Draft a formal agreement between the
companies that stipulates the parties’
responsibilities and sharing of
revenues/profits
SLP Execution