The Global Economic Impact of Private Equity Report 2008 - World ...

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Exhibit 4: Growth statistics for the Chinese restaurant industryThe restaurant business in China is large and has enjoyed strong growth over the past 5 yearsRevenue of China’s restaurant industry (2001–2005)Driving forces(RMB bn)CAGR=19.4%• Economy grows 8% on average888.7• Fast growth of disposable incomein China436.9529.2606.6748.6• Urbanization process increases the diningout choices as restaurants become moreand more economically viable• Spending in restaurants by urban citizensgrew 20% p.a. over the past 5 years20012002200320042005Source: Company documents.Exhibit 5: Hot pot restaurant as a sub-sector of the dining industryHot pot’s market share of the restaurant industry is estimated to be 15% to 20% on a growing basisTotal restaurant industry in 2005Volume of Chinese foodin restaurants in 2005Comments100%=888.7 (RMB bn) 100%=822.0 (RMB bn)Western food5% - 10%(~RMB 66.7bn)• Calculations based on data from ChinaRestaurants in Chain Statistics Yearbook• Hot pot market share shows anupward trend– 14.7% in 2003– 21.2% in 2004Hot pot16% - 22%• A sample telephone survey conductedby Roland Berger staff showed onaverage hot pot dining represents15-20% of overall restaurant spendingChinese food90% - 95%(~RMB 822.0bn)Non-hot pot78% - 85%Source: Company documents.138 Case studies: 3i Group plc and Little SheepThe Global Economic Impact of Private Equity Report 2008
Exhibit 6: An excerpt from the 180-day planIssues Timing Action / OutputI. Legal…g. Lease agreement Within 6 months – Renew lease agreements that have expired or are to expire soon by 31 July 2006– Revise certain lease agreements (identified in legal due diligence) by 31 July 2006– ……i. Other permits Within 12 months – Obtain necessary certificates or evidence for compliance with fire safety, environmentaland certificatesprotection and sewage fees within 12 monthsII. Financiala. Internal system Within 3 months – report – …and recommendations; – Engage a leading accountant to examine systems, processes, controls,Within 12 months –information capture to ensure robust, speedy and accurate information flowadoption of– Report outlining adequacy of existing systems and recommendations forrecommendationsimprovements to be presented at first board meeting post-completion.Satisfactory system in place in 12 months– ……III. Business and Operations…c. New site selection By 31 September 2006 – Standardize and formalize location assessment process– Set up a dedicated team responsible for new site selection for the whole group– Establish a set of criteria and parameters such as those in the Roland Berger report– ……e. Store-level operational Assign responsibilities – Refine operations manualimprovementand agree on actionplan within 3 months – Step up staff trainings and communications– Enhance internal audit and increase frequency of store checks– Implement KPI benchmark at city/provincial, regional and national levels… –Source: Company documents.Exhibit 6A: Little Sheep’s management team before 3i investmentBoard Chairman/CEOMr Zhang Gang,founder of Little SheepSenior VP of FinanceMr Lu Wen Bing,ex Meng Niu executiveVP of Beijing regionMr Zhang Zhan Hai,Long-term Little SheepmanagementVP of Shangai regionMs KouVP of Shenzhen regionNAExhibit 6B: Little Sheep’s management team after 3i investmentBoard Chairman/CEOMr Zhang Gang,Founder of Little SheepChief Executive OfficerMr Lu WenbingChief OperatingOfficerMr Yuka YeungChief Financial OfficerMr Daizong WangVice President forCoporate OfficeNAVP BeijingRegion FranchiseBusinessGeneral Managerof Shangai RegionNAGeneral Managerof Shenzen RegionNAThe Global Economic Impact of Private Equity Report 2008 Case studies: 3i Group plc and Little Sheep 139
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The Globalization of Alternative In
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ContributorsCo-editorsAnuradha Guru
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PrefaceKevin SteinbergChief Operati
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Letter on behalf of the Advisory Bo
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Executive summaryJosh lernerHarvard
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• Private equity-backed companies
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C. Indian casesThe two India cases,
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Part 1Large-sample studiesThe Globa
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The new demography of private equit
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among US publicly traded firms, it
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should be fairly complete. While th
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according to Moody’s (Hamilton et
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draining public markets of firms. I
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FIguresFigure 1A: LBO transactions
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TablesTable 1: Capital IQ 1980s cov
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Table 2: Magnitude and growth of LB
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Table 4: Exits of individual LBO tr
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Table 6: Determinants of exit succe
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Table 7: Ultimate staying power of
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Appendix 1: Imputed enterprise valu
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Private equity and long-run investm
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alternative names associated with t
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4. Finally, we explore whether firm
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When we estimate these regressions,
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cutting back on the number of filin
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Table 1: Summary statisticsPanel D:
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Table 4: Relative citation intensit
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figuresFigure 1: Number of private
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Private equity and employment*steve
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Especially when taken together, our
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centred on the transaction year ide
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and Vartia 1985.) Aggregate employm
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sectors. In Retail Trade, the cumul
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employment-weighted acquisition rat
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FIguresFigure 1: Matches of private
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Figure 6:Figure 6A: Comparison of n
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Figure 8:Figure 8A: Comparison of j
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Figure 11: Variation in impact in e
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Figure 12: Differences in impact on
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Private equity and corporate govern
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et al (2007) track the evolution of
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groups aim to improve firm performa
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distribution of the LBO sponsors, m
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the most difficult cases. This stor
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to see whether these changes of CEO
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Figure 3:This figure represents the
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TablesTable 1: Company size descrip
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Table 5: Changes in the board size,
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Table 7: Board turnoverPanel A: Siz
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Part 2Case studiesThe Global Econom
Page 105 and 106: European private equity cases: intr
Page 107 and 108: Exhibit 1: Private equity fund size
Page 109 and 110: Messer Griesheimann-kristin achleit
Page 111 and 112: ealized it was not possible to grow
Page 113 and 114: The deal with Allianz Capital partn
Page 115 and 116: the deal, the private equity invest
Page 117 and 118: Exhibit 1: The Messer Griesheim dea
Page 119 and 120: Exhibit 5: Post buyout structureMes
Page 121 and 122: New Lookann-kristin achleitnerTechn
Page 123 and 124: feet. This restricted store space w
Page 125 and 126: institutional investors why this in
Page 127 and 128: Although a public listing did not a
Page 129 and 130: Exhibit 5: Employment development a
Page 131 and 132: Chinese private equity cases: intro
Page 133 and 134: Hony Capital and China Glass Holdin
Page 135 and 136: Hony’s Chinese name means ambitio
Page 137 and 138: Establishing early agreement on pos
Page 139 and 140: Executing the IPOEach of the initia
Page 141 and 142: Exhibit 1A: Summary of Hony Capital
Page 143 and 144: Exhibit 4: Members of the China Gla
Page 145 and 146: Exhibit 6A: China Glass post‐acqu
Page 147 and 148: Exhibit 8: China Glass stock price
Page 149 and 150: 3i Group plc and Little Sheep*Lily
Page 151 and 152: y an aggressive franchise strategy,
Page 153 and 154: soul” of the business. But there
Page 155: Exhibit 1: Summary information on 3
Page 159 and 160: Indian private equity cases: introd
Page 161 and 162: ICICI Venture and Subhiksha *Lily F
Page 163 and 164: investment,” recalled Deshpande.
Page 165 and 166: 2005 - 2007: Moderator, protector a
Page 167 and 168: Exhibit 3: Subhiksha’s board comp
Page 169 and 170: Warburg Pincus and Bharti Tele‐Ve
Page 171 and 172: founded two companies at this time
Page 173 and 174: By 2003 this restructuring task was
Page 175 and 176: Exhibit 1C: Private equity investme
Page 177 and 178: Exhibit 4B: Bharti cellular footpri
Page 179 and 180: Exhibit 6: Summary of Bharti’s fi
Page 181 and 182: Exhibit 7: Bharti’s board structu
Page 183 and 184: In the 1993‐94 academic year, he
Page 185 and 186: consumer products. She was also a R
Page 187 and 188: AcknowledgementsJosh LernerHarvard
Page 189: The World Economic Forum is an inde
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