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8 INCREASE IN BUSINESS MODEL INNOVATION<br />
While making additional investment necessary, rethinking a<br />
portfolio company's business model often is a viable option<br />
Framework for business model innovation<br />
PERFORMANCE VS. ORIGINAL PLAN BUSINESS MODEL INNOVATION FRAMEWORK<br />
Acquisition … 2009 2010 … Exit<br />
THREE POSSIBLE RESULTS OF SUCCESSFUL BUSINESS MODEL INNOVATION<br />
A Return to original business plan<br />
performance level<br />
> Sustainable increase of sales or<br />
profitability<br />
> Higher EBITDA upon exit increases<br />
returns<br />
Source: Roland Berger<br />
B<br />
A<br />
Do nothing<br />
Product / marketcombination<br />
Revenue<br />
model<br />
B Establish new technology / market<br />
combination<br />
> Change in the level playing field<br />
> Higher exit multiple possible due to<br />
new peer group<br />
Status<br />
quo<br />
OR<br />
Value chain<br />
Reach a new phase in the<br />
company's lifecycle<br />
> Bringing the company from maturity<br />
to a new growth phase<br />
> Benefits for all stakeholders<br />
<strong>European</strong> <strong>Private</strong> <strong>Equity</strong> <strong>Outlook</strong> <strong>2011</strong>_Final_010411.PPTX 39
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