Submitted by,

Team: Sapadapa
Apurba Mukherjee 14P189
Hairsh R 14P201

KICC 2014-15: COLLEGE SCREENING ROUND

Abhishek Kumar 14P182

Aditya Thangeda 14P183

Advantages of PE Investment
Better
Corporat
e
Governan
ce in
Company
Insured

Funds for
Capital
Investme
nt and R
&D
expendit
ure

Strategic
and
Financial
advice
from
Industry
Experts

Risk
Aversion
and
Diversific
ation
achieved

Encourag
es new
Startups
in the
country

Increased
Confiden
ce of all
Stake
holders
due to
Effective
Manage
ment and
guidance

Removin
g barriers
to entry
for small
and
medium
sized
compani
es

PE Investments vs Non PE Investments

IT BPO Company Revenues
Before PE Investment

Sales Growth (CAGR)

Post PE Investment

22.90%

2979.6

15.80%
10.00%

15

203

WN S

404 493
7.98
Mp h a s is

121.9
16.1

27.8 74

Fi r s t s o u r c e

E XL

4.5384.2
G enpact

In f o s ys B P O

P E b ac ke d

No n P E

Wages Growth
50%
32%
24%
16%
6%

8%

Nifty

Advantages of Non PE Firms

Documen
tation is
less
intensive
Valuation
s of Firms
not an
Issue
No
Dilution
of
Ownershi
p

Lower
involvem
ent of
Non PE
based
Compani
es in
Operatio
ns

Disadvantages of PE Investment
Valuation can be subjective
Continuous pressure of due diligence

Higher returns demanded

Focus only on profitability; resulting in high turnover
Additional risk due to debt financing
Exit Option

Recommendations

For Start Ups:

Go to PE Route
For Well
Established
Firms : Non PE
Route Preferred

Expert Advice
Hand holding till stable grounding
Setting up of Systems and
Standards

No dilution of stake
Autonomy in operations
Autonomy in spending and growth
expansion

Thank You