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The Private Equity Play
Mike Lorelli
2
Agenda
 History
 Returns
 Where is the money coming from?
 Terminology
 The p.e. model
 p.e. compensation
 Results and Performance Measures
 ‘The Funnel’
 Management Compensation
 The right mindset when dealing with private equity
 10 Consultant keys to The p.e. Vault
 Importance of a good LinkedIn profile. . . you want to hear about
good searches
 Tips to drive p.e. ‘stickiness’ and your personal ‘hits’
 Don’t forget about Board roles
3
EBITDA
Earnings Before:
• Interest
• Taxes
• Depreciation
• Amortization
4
Stages
Idea Up & Running Mature
VC PE
• Trailing EBITDA
5
Value Creation
100% Value Creation
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
18%
31%
51%
22%
36%
46%
39%
32% 25%
Leverage era (1980s) Multiple Expansion
era (1990s)
Earnings growth
era (2000s)
Operational improvement
era (2010s)
Operational improvement Multiple arbitrage Leverage
ValueCreation
6
WSJ: “Buyouts Leave Simmons Little Rest”
7
Terminology
 The providers of capital: Limited Partners, or LP’s
- who are they?
 The fund manager: General Partner, or GP, or p.e.
8
Returns Well Out-Performed S&P
9
Percentage of Capital by LP type
LBO Funds
0.3 1.8
2.2
3.6
8.4
10.6
14.2
16.2
28.7
6.4
5.4
3.9
Public pension funds
Funds of funds
Corp pension funds & corps
Banks/financial services cos.
Endowments/foundations
Insurance Cos.
Sovereign wealth funds
Wealthy investors/feeder funds
GP contribution
Family offices
Union pension funds
Other
10
The “Vintage Year”
11
Many ways to categorize the 1,700
 By size
• Large $1 billion+ revenues
• Mid-market > $150 million
• Small < $150 million
 By sector specialty
• Healthcare
• Consumer
• QSR
• IT
• Financial services
• etc.
 Net-net, sector first; and mid-market; not lower or
upper
12
Excellent
13
Don’t un-necessarily limit where you can play
14
Top Fund Managers
Rank Firm City Capital ($Millions)
1 TPG Capital Fort Worth (Texas) $50,553
2 Goldman Sachs Principal Investment Area New York $47,224
3 The Carlyle Group Washington DC $40,540
4 Kohlberg Kravis Roberts & Co. New York $40,215
5 The Blackstone Group New York $33,418
6 Apollo Global Management New York $33,813
7 Bain Capital Boston $29,402
8 CVC Capital Partners London $25,068
9 Hellman & Friedman San Francisco $17,200
10 Apax Partners London $16,637
11 Warburg Pincus New York $15,000
12 Cerberus Capital Management New York $14,900
13 Advent International Boston $14,519
14 Permia London $13,572
15 Oaktree Capital Management Los Angeles $13,045
16 Tera Firma Capital Partners London $12,249
17 Providence Equity Partners Providence (RI) $12,100
18 Clayton Dubilier & Rice New York $11,404
19 Charterhouse Capital Partners London $11,268
20 Teacher’s Private Captial Toronto $10,758
15
Top 12 p.e. Investors in 2016
16
The LBO model
 Purchase
• 7.0 X $9m = $63
• Cash 27
• Debt 36
 Sale
• 8.0 X $14.1m = $113
• Debt 32
• Proceeds 81
17
The LBO model
 Purchase
• 7.0 X $9m = $63
• Cash 27
• Debt 36
 Sale
• 8.0 X $14.1m = $113
• Debt 32
• Proceeds 81
= 3.0 X cash-on-
cash
The p.e. / L.P Model Pelosi 2008 Fund
2008 2009 2010 2011 2012 2013 2014 2015 2016
A
B
C D
E
F
G
H
I
J
F
E
DA
B
C
Sale
Purchase
19
The p.e. / L.P Model Pelosi 2008 Fund
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
A
B
C
D
E
F
G H I
J
F
E
DA
B
C
Sale
Purchase
Invest Harvest
20
p.e. Compensation
 2% of managed capital
• pays salaries, rent, and nominal bonuses
 20% carried interest from profits on distributions*
21
Performance Measures
Good Great Awesome
 IRR 20% 28% 33+%
 Cash-on-cash return 2X 3X 5+X
 Hold period 8+ years 6 years 3- years
22
Buyout Fund Sample
Partnership/Year
Capital
Committed
(M)
Capital
Cont.
(M)
Dist. As
of (M)
Net IRR
As of (%)
Oregon State Treasury 12/31/13 12/31/13
2000 Riverside Capital Appreciation Fund/2000 $50.0 $46.3 $73.1 22.1
2003 Riverside Capital Appreciation Fund/2003 $75.0 $77.4 $47.1 15.3
Apollo Investment Fund VI LP/2006 $200.0 $223.1 $57.5 3.1
Aurora Equity Partners III LP/2004 $50.0 $53.0 $20.8 17.7
BCI Growth V LP/1999 $75.0 $72.9 $27.2 -8.7
Castle Harlan Partners IV LP/2002 $100.0 $102.3 $109.8 17.3
CVC Capital Partners Asia Pacific II LP/2005 $100.0 $122.4 $38.3 -6.2
Diamond Castle Partners IV LP/2005 $100.0 $71.3 $16.1 -4.5
Endeavor Capital Fund III LP/2000 $25.0 $24.5 $43.7 28.9
Fenway Partners Capital Fund III LP/2006 $50.0 $53.9 $19.6 -4.9
Hicks Muse Tate & Furst Europe Fund LP/1999 $99.3 $116.8 $196.9 21.7
KKR European Fund LP/1999 $400.0 $532.3 $778.8 19.3
KKR Millennium Fund LP/2002 $1,000.0 $1,308.8 $1,064.2 17.9
Lion Capital Fund I LP/2004 $99.8 $108.8 $117.2 26.5
Oak Hill Capital Partners II LP/2004 $100.0 $105.8 $15.7 6.8
Parthenon Investors III LP/2005 $100.0 $67.8 $8.7 1.7
Rhone Partners III LP/2006 $100.0 $65.4 $11.5 5.8
TPG Partners III LP/2000 $300.0 $284.5 $571.9 24.5
HarbourVest Partners 2004 Direct Fund/2004 $75.0 $74.1 $21.1 11.1
23
A typical 10 company fund result
 2 out-of-the-park
 1 triple
 2 doubles
 3 singles
 2 the bank took the car keys
24
The Funnel
300 teasers
100 books
7 LOI’s
2 due diligence
1 close
20 Meetings with Mgmt
25
Options for Executives Working with Private Equity
Fund
Commit-
ment
Advisor/ Consultant
Fee
Deal Executive / Executive in Residence
retainer+upside
Portfolio Company Management
salary+bonus+equity
Executive’s Income
Expert Network / Interim Executive
hourly comp
Operating Partner
salary+bonus+carry
David Teten, www.Teten.com/executive
26
Who the p.e. wants to meet
Job Seekers
Deal Resource
Thesis-Driven
Deal Exec
Target-
Driven Deal
Exec
Source: Andy Thompson, Notch Partners
27
Management Compensation

Base Bonus Equity
 CEO $200K - $450K 50-75% 5.0% equity*
 CFO/COO 125K - $275K 40-50% 1.5% equity
 CMO 125K- $225K 25-33% 1.0% equity
 * and opportunity to co-invest
28
The Private Equity vs. Traditional C-level
 Greater emphasis on time (driven by Hold Period)
 Tenure can be compared to ‘the half-life of uranium’
 Better fits are executives who:
• Exhibit “Jack be nimble, Jack be quick” temperament
• Be a Jack-of-all-trades
• Work on scarce resources
– you may be making the run to Staples for supplies today
– you write the Strategic Plan (no Corporate Staff)
• Love tight quarters
– You may be sharing a pillow some nights with the p.e’s Deal Team
29
Your Pride Vs. Their Need
Your Pride:
“Action oriented executive with 21
years leadership experience with
Fortune 100 Allied Chemical. ”
30
Your Pride Vs. Their Need
Your Pride:
“Action oriented executive with 21
years leadership experience with
Fortune 100 Allied Chemical. ”
Their Point-of-View:
“21 years! Ugh! We want to exit in
Year 4. . . Year 7 max. Please get
this Rip Van Winkle out of my
sight!”
“He probably takes 9 years to
figure out what Google people do
in 3 years!”
31
Your Revised “Pride”
Your Pride:
“I’m a Fortune trained leader that
has made a step change in the
EBITDA CAGR in every
assignment."
32
Your Revised “Pride”
Your Pride:
“I’m a Fortune trained leader who
has made a step change in the
EBITDA CAGR in every
assignment."
Their Read:
“Jesus!!!” Here comes my bonus!”
Trump, please don’t tax carried
interest!” This is our guy!
33
Carried Interest . . .
34
. .
Carried Interest Continued
The Trades
36
Consultant Angles Into ‘The Vault’- pre-Acq.
Do the Marketing & Sales due diligence
(never for free)
37
10 Consultant Angles Into ‘The Vault’
1. Write their Strategic Plan
2. Do the Category Segmentation
3. Provide a killer Competitive Assessment
4. Work with The Management Team on ‘The 100 Day Plan’
5. Come up with Rapid Change Ideas
6. Margin Enhancement ideas
38
10 Consultant Angles Into ‘The Vault’
7. Fast Revenue Ideas
8. Show them how to build out the geographic footprint
9. Be the meanest about sucking the eyeballs out of the competitor
1. making them bleed is a winning strategy (a page from The Cola Wars)
10. Show them who they should acquire, to:
• Add new markets, fast
• Add new channels, fast
• Add new products, fast
• Build the geographic footprint, fast
39
The Importance of a Killer LinkedIn Profile
 50% of candidates are
found via LinkedIn
 Or they will at least check
you out!
below average
slightly above average
Above average
Very Good
Excellent
Outstanding
Killer*
You don’t exist!
You are 1 of 5,000
You are 1 of 2,000
You are 1 of 1,000
You are 1 of 500
You are 1 of 100
460 million LinkedIn members
You are 1 of 200
41
Keywords
 • EBITDA growth
 • Revenue Acceleration
 • Margin Enhancement
 • Multiple Expansion
 • Deal Origination
 • Topgrading
 • New Channels/Markets
 • International Expansion
 • CEO
 • Global Footprint
 • CXO
 • Lean Manufacturing
 • Turnarounds
 • Exit Strategies
42
The Prime Pieces of Real Estate
43
Consider 3 or 4 Subheads
 • PROFITIBLY DRIVE MARKET SHARE
• As CMO Dunkin Brands, rekindled marked share growth supporting 6,000 locations.
• As CMO Baskin-Robbins International, developed Global Marketing Platform that energized core 35 countries into double digit
growth for 5 years.
 • CREATE NEW CHANNELS
• Led development of Bruegger’s, Timothy’s World Coffee, Michele’s Bakere Café, and Mmmuffuins into airport, college campus, and
other non-traditional channels.
• Developed co-brand model for Auntie Anne’s which led to 200+ unit expansion with sister company Carvel.
.
 • A NEW PRODUCT CREATOR
• Created and introduced Subway’s $5 Sub which generated $1.4 billion in system-wide sales in its launch year.
 • AGGRESSIVELY BUILD INTERNATIONAL FOOTPRINTS
• Expanded Quiznos from 14 to 32 countries.
• Led expansion with private equity group for Auntie Anne’s to license into 25 markets.
44
ps Be thinking about your Board roles
 It’s never too early
 Get on one serious (well paying) Board by your late 40’s
 You should be on two by your mid 50’s
There is an effort and work plan involved:
www.fasterlandings.com/
“Landing Board Seats” tab
45
Lots of p.e. CMO, Consulting, Board Opportunities
 In the US:
 5,000 public companies X 7 = 35,000 outside directors
 16,821 private equity companies X 2 = 33,000 outside directors
Mike Lorelli
46
Private Coaching ‘Semester’
47
Visit www.linkedin.com/in/mikelorelli
Mike Lorelli
(203) 253-1238
MKLorelli@gmail.com
Questions?
48
Michael K. Lorelli
15 Norman Lane
Darien, CT 06820
Office: 203 655-2444
FAX: 203 655-6916
Email: miklorelli@aol.com
Website: www.Lorelli.net
www.LinkedIn.com/in/MikeLorelli
http://www.gplus.to/MikeLorelli
Mike Lorelli’s 30-year career spans a wide range of consumer products and services, and
B2B categories, with responsibilities for both domestic and international units. His years as a
line-operating manager have been with Fortune 100 companies: PepsiCo and Bristol Myers
Squibb. For the last 14 years, as CEO, he has led revitalizations and turnarounds for private
equity firms. For example, Dr. John Rutledge, Chairman of Rutledge Capital, will say:
“I would invade China with Mike alone in a rubber boat.” He is presently An Operating
Partner at Falconhead Capital, and Executive Chairman of the Board, Rita’s Franchise
company, the nations leading Italian Ice and frozen custard chain.
Mike has also led CEO engagements for Riverside Company, Rutledge Capital, and
Pouschine Cook Capital.
Mike’s assignments at PepsiCo included CMO for PepsiCo’s beverage sector, President of
Pepsi-Cola East, a $1.5 Billion operating company, and President for Pizza Hut’s
International division where he led a “global or bust” charge, resulting in expanding the
Company’s presence from 68 to 92 countries, surpassing McDonalds in country count.
During his PepsiCo tenure, he is given credit for authoring the soft drink company’s “Big
Event Marketing” strategy, which coupled the product with leading- edge events in
entertainment, sports, consumer electronics, movies and home video.
Mike holds a Bachelor of Engineering degree in Industrial Engineering from New York
University, and an MBA in Marketing from NYU’s Stern Graduate School of Business. He
has traveled to 58 countries, is an avid runner, claims to excel at no sport, is an active
private pilot, member The CEO Trust, former member of YPO, and author of the childrens’
best-seller “Traveling Again, Dad?” with profits donated to childrens’ charities. Mike is also a
Director of CPKelco.. He holds a Masters Professional Director Certification from The
American College of Corporate Directors, and is also an NACD 2011 Masters Governance
Fellow. He is also a registered speaker with Vistage International.
Leading The World In Burn Care
Michael K. Lorelli

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The Private Equity Play

  • 1. The Private Equity Play Mike Lorelli
  • 2. 2 Agenda  History  Returns  Where is the money coming from?  Terminology  The p.e. model  p.e. compensation  Results and Performance Measures  ‘The Funnel’  Management Compensation  The right mindset when dealing with private equity  10 Consultant keys to The p.e. Vault  Importance of a good LinkedIn profile. . . you want to hear about good searches  Tips to drive p.e. ‘stickiness’ and your personal ‘hits’  Don’t forget about Board roles
  • 3. 3 EBITDA Earnings Before: • Interest • Taxes • Depreciation • Amortization
  • 4. 4 Stages Idea Up & Running Mature VC PE • Trailing EBITDA
  • 5. 5 Value Creation 100% Value Creation 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 18% 31% 51% 22% 36% 46% 39% 32% 25% Leverage era (1980s) Multiple Expansion era (1990s) Earnings growth era (2000s) Operational improvement era (2010s) Operational improvement Multiple arbitrage Leverage ValueCreation
  • 6. 6 WSJ: “Buyouts Leave Simmons Little Rest”
  • 7. 7 Terminology  The providers of capital: Limited Partners, or LP’s - who are they?  The fund manager: General Partner, or GP, or p.e.
  • 9. 9 Percentage of Capital by LP type LBO Funds 0.3 1.8 2.2 3.6 8.4 10.6 14.2 16.2 28.7 6.4 5.4 3.9 Public pension funds Funds of funds Corp pension funds & corps Banks/financial services cos. Endowments/foundations Insurance Cos. Sovereign wealth funds Wealthy investors/feeder funds GP contribution Family offices Union pension funds Other
  • 11. 11 Many ways to categorize the 1,700  By size • Large $1 billion+ revenues • Mid-market > $150 million • Small < $150 million  By sector specialty • Healthcare • Consumer • QSR • IT • Financial services • etc.  Net-net, sector first; and mid-market; not lower or upper
  • 13. 13 Don’t un-necessarily limit where you can play
  • 14. 14 Top Fund Managers Rank Firm City Capital ($Millions) 1 TPG Capital Fort Worth (Texas) $50,553 2 Goldman Sachs Principal Investment Area New York $47,224 3 The Carlyle Group Washington DC $40,540 4 Kohlberg Kravis Roberts & Co. New York $40,215 5 The Blackstone Group New York $33,418 6 Apollo Global Management New York $33,813 7 Bain Capital Boston $29,402 8 CVC Capital Partners London $25,068 9 Hellman & Friedman San Francisco $17,200 10 Apax Partners London $16,637 11 Warburg Pincus New York $15,000 12 Cerberus Capital Management New York $14,900 13 Advent International Boston $14,519 14 Permia London $13,572 15 Oaktree Capital Management Los Angeles $13,045 16 Tera Firma Capital Partners London $12,249 17 Providence Equity Partners Providence (RI) $12,100 18 Clayton Dubilier & Rice New York $11,404 19 Charterhouse Capital Partners London $11,268 20 Teacher’s Private Captial Toronto $10,758
  • 15. 15 Top 12 p.e. Investors in 2016
  • 16. 16 The LBO model  Purchase • 7.0 X $9m = $63 • Cash 27 • Debt 36  Sale • 8.0 X $14.1m = $113 • Debt 32 • Proceeds 81
  • 17. 17 The LBO model  Purchase • 7.0 X $9m = $63 • Cash 27 • Debt 36  Sale • 8.0 X $14.1m = $113 • Debt 32 • Proceeds 81 = 3.0 X cash-on- cash
  • 18. The p.e. / L.P Model Pelosi 2008 Fund 2008 2009 2010 2011 2012 2013 2014 2015 2016 A B C D E F G H I J F E DA B C Sale Purchase
  • 19. 19 The p.e. / L.P Model Pelosi 2008 Fund 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 A B C D E F G H I J F E DA B C Sale Purchase Invest Harvest
  • 20. 20 p.e. Compensation  2% of managed capital • pays salaries, rent, and nominal bonuses  20% carried interest from profits on distributions*
  • 21. 21 Performance Measures Good Great Awesome  IRR 20% 28% 33+%  Cash-on-cash return 2X 3X 5+X  Hold period 8+ years 6 years 3- years
  • 22. 22 Buyout Fund Sample Partnership/Year Capital Committed (M) Capital Cont. (M) Dist. As of (M) Net IRR As of (%) Oregon State Treasury 12/31/13 12/31/13 2000 Riverside Capital Appreciation Fund/2000 $50.0 $46.3 $73.1 22.1 2003 Riverside Capital Appreciation Fund/2003 $75.0 $77.4 $47.1 15.3 Apollo Investment Fund VI LP/2006 $200.0 $223.1 $57.5 3.1 Aurora Equity Partners III LP/2004 $50.0 $53.0 $20.8 17.7 BCI Growth V LP/1999 $75.0 $72.9 $27.2 -8.7 Castle Harlan Partners IV LP/2002 $100.0 $102.3 $109.8 17.3 CVC Capital Partners Asia Pacific II LP/2005 $100.0 $122.4 $38.3 -6.2 Diamond Castle Partners IV LP/2005 $100.0 $71.3 $16.1 -4.5 Endeavor Capital Fund III LP/2000 $25.0 $24.5 $43.7 28.9 Fenway Partners Capital Fund III LP/2006 $50.0 $53.9 $19.6 -4.9 Hicks Muse Tate & Furst Europe Fund LP/1999 $99.3 $116.8 $196.9 21.7 KKR European Fund LP/1999 $400.0 $532.3 $778.8 19.3 KKR Millennium Fund LP/2002 $1,000.0 $1,308.8 $1,064.2 17.9 Lion Capital Fund I LP/2004 $99.8 $108.8 $117.2 26.5 Oak Hill Capital Partners II LP/2004 $100.0 $105.8 $15.7 6.8 Parthenon Investors III LP/2005 $100.0 $67.8 $8.7 1.7 Rhone Partners III LP/2006 $100.0 $65.4 $11.5 5.8 TPG Partners III LP/2000 $300.0 $284.5 $571.9 24.5 HarbourVest Partners 2004 Direct Fund/2004 $75.0 $74.1 $21.1 11.1
  • 23. 23 A typical 10 company fund result  2 out-of-the-park  1 triple  2 doubles  3 singles  2 the bank took the car keys
  • 24. 24 The Funnel 300 teasers 100 books 7 LOI’s 2 due diligence 1 close 20 Meetings with Mgmt
  • 25. 25 Options for Executives Working with Private Equity Fund Commit- ment Advisor/ Consultant Fee Deal Executive / Executive in Residence retainer+upside Portfolio Company Management salary+bonus+equity Executive’s Income Expert Network / Interim Executive hourly comp Operating Partner salary+bonus+carry David Teten, www.Teten.com/executive
  • 26. 26 Who the p.e. wants to meet Job Seekers Deal Resource Thesis-Driven Deal Exec Target- Driven Deal Exec Source: Andy Thompson, Notch Partners
  • 27. 27 Management Compensation  Base Bonus Equity  CEO $200K - $450K 50-75% 5.0% equity*  CFO/COO 125K - $275K 40-50% 1.5% equity  CMO 125K- $225K 25-33% 1.0% equity  * and opportunity to co-invest
  • 28. 28 The Private Equity vs. Traditional C-level  Greater emphasis on time (driven by Hold Period)  Tenure can be compared to ‘the half-life of uranium’  Better fits are executives who: • Exhibit “Jack be nimble, Jack be quick” temperament • Be a Jack-of-all-trades • Work on scarce resources – you may be making the run to Staples for supplies today – you write the Strategic Plan (no Corporate Staff) • Love tight quarters – You may be sharing a pillow some nights with the p.e’s Deal Team
  • 29. 29 Your Pride Vs. Their Need Your Pride: “Action oriented executive with 21 years leadership experience with Fortune 100 Allied Chemical. ”
  • 30. 30 Your Pride Vs. Their Need Your Pride: “Action oriented executive with 21 years leadership experience with Fortune 100 Allied Chemical. ” Their Point-of-View: “21 years! Ugh! We want to exit in Year 4. . . Year 7 max. Please get this Rip Van Winkle out of my sight!” “He probably takes 9 years to figure out what Google people do in 3 years!”
  • 31. 31 Your Revised “Pride” Your Pride: “I’m a Fortune trained leader that has made a step change in the EBITDA CAGR in every assignment."
  • 32. 32 Your Revised “Pride” Your Pride: “I’m a Fortune trained leader who has made a step change in the EBITDA CAGR in every assignment." Their Read: “Jesus!!!” Here comes my bonus!” Trump, please don’t tax carried interest!” This is our guy!
  • 36. 36 Consultant Angles Into ‘The Vault’- pre-Acq. Do the Marketing & Sales due diligence (never for free)
  • 37. 37 10 Consultant Angles Into ‘The Vault’ 1. Write their Strategic Plan 2. Do the Category Segmentation 3. Provide a killer Competitive Assessment 4. Work with The Management Team on ‘The 100 Day Plan’ 5. Come up with Rapid Change Ideas 6. Margin Enhancement ideas
  • 38. 38 10 Consultant Angles Into ‘The Vault’ 7. Fast Revenue Ideas 8. Show them how to build out the geographic footprint 9. Be the meanest about sucking the eyeballs out of the competitor 1. making them bleed is a winning strategy (a page from The Cola Wars) 10. Show them who they should acquire, to: • Add new markets, fast • Add new channels, fast • Add new products, fast • Build the geographic footprint, fast
  • 39. 39 The Importance of a Killer LinkedIn Profile  50% of candidates are found via LinkedIn  Or they will at least check you out!
  • 40. below average slightly above average Above average Very Good Excellent Outstanding Killer* You don’t exist! You are 1 of 5,000 You are 1 of 2,000 You are 1 of 1,000 You are 1 of 500 You are 1 of 100 460 million LinkedIn members You are 1 of 200
  • 41. 41 Keywords  • EBITDA growth  • Revenue Acceleration  • Margin Enhancement  • Multiple Expansion  • Deal Origination  • Topgrading  • New Channels/Markets  • International Expansion  • CEO  • Global Footprint  • CXO  • Lean Manufacturing  • Turnarounds  • Exit Strategies
  • 42. 42 The Prime Pieces of Real Estate
  • 43. 43 Consider 3 or 4 Subheads  • PROFITIBLY DRIVE MARKET SHARE • As CMO Dunkin Brands, rekindled marked share growth supporting 6,000 locations. • As CMO Baskin-Robbins International, developed Global Marketing Platform that energized core 35 countries into double digit growth for 5 years.  • CREATE NEW CHANNELS • Led development of Bruegger’s, Timothy’s World Coffee, Michele’s Bakere Café, and Mmmuffuins into airport, college campus, and other non-traditional channels. • Developed co-brand model for Auntie Anne’s which led to 200+ unit expansion with sister company Carvel. .  • A NEW PRODUCT CREATOR • Created and introduced Subway’s $5 Sub which generated $1.4 billion in system-wide sales in its launch year.  • AGGRESSIVELY BUILD INTERNATIONAL FOOTPRINTS • Expanded Quiznos from 14 to 32 countries. • Led expansion with private equity group for Auntie Anne’s to license into 25 markets.
  • 44. 44 ps Be thinking about your Board roles  It’s never too early  Get on one serious (well paying) Board by your late 40’s  You should be on two by your mid 50’s There is an effort and work plan involved: www.fasterlandings.com/ “Landing Board Seats” tab
  • 45. 45 Lots of p.e. CMO, Consulting, Board Opportunities  In the US:  5,000 public companies X 7 = 35,000 outside directors  16,821 private equity companies X 2 = 33,000 outside directors
  • 47. 47 Visit www.linkedin.com/in/mikelorelli Mike Lorelli (203) 253-1238 MKLorelli@gmail.com Questions?
  • 48. 48 Michael K. Lorelli 15 Norman Lane Darien, CT 06820 Office: 203 655-2444 FAX: 203 655-6916 Email: miklorelli@aol.com Website: www.Lorelli.net www.LinkedIn.com/in/MikeLorelli http://www.gplus.to/MikeLorelli Mike Lorelli’s 30-year career spans a wide range of consumer products and services, and B2B categories, with responsibilities for both domestic and international units. His years as a line-operating manager have been with Fortune 100 companies: PepsiCo and Bristol Myers Squibb. For the last 14 years, as CEO, he has led revitalizations and turnarounds for private equity firms. For example, Dr. John Rutledge, Chairman of Rutledge Capital, will say: “I would invade China with Mike alone in a rubber boat.” He is presently An Operating Partner at Falconhead Capital, and Executive Chairman of the Board, Rita’s Franchise company, the nations leading Italian Ice and frozen custard chain. Mike has also led CEO engagements for Riverside Company, Rutledge Capital, and Pouschine Cook Capital. Mike’s assignments at PepsiCo included CMO for PepsiCo’s beverage sector, President of Pepsi-Cola East, a $1.5 Billion operating company, and President for Pizza Hut’s International division where he led a “global or bust” charge, resulting in expanding the Company’s presence from 68 to 92 countries, surpassing McDonalds in country count. During his PepsiCo tenure, he is given credit for authoring the soft drink company’s “Big Event Marketing” strategy, which coupled the product with leading- edge events in entertainment, sports, consumer electronics, movies and home video. Mike holds a Bachelor of Engineering degree in Industrial Engineering from New York University, and an MBA in Marketing from NYU’s Stern Graduate School of Business. He has traveled to 58 countries, is an avid runner, claims to excel at no sport, is an active private pilot, member The CEO Trust, former member of YPO, and author of the childrens’ best-seller “Traveling Again, Dad?” with profits donated to childrens’ charities. Mike is also a Director of CPKelco.. He holds a Masters Professional Director Certification from The American College of Corporate Directors, and is also an NACD 2011 Masters Governance Fellow. He is also a registered speaker with Vistage International. Leading The World In Burn Care Michael K. Lorelli

Notas del editor

  1. The p.e. life may seem glamorous and easy, but take a look at the statistics from his side. That’s a lot of frogs to kiss for one date.