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Investor Presentaiton

Once the Investor is satisfied that the potential investment target will be a good partner, the Investor should consider the following questions: What type of financial return or benefit is sought? The answers to this question will depend on the form of investment. For example, if the investment takes the form of a simple contractual agreement with a US company, then the Investor's direct interest will be the Investor's own revenue and not the revenue of the US company. If the Investor acquires an ownership interest in the US company, then the Investor will have an interest in increasing the profit of the US company. The varying goals can be: For the US operations and/or US company to have US services and operations that can complement the Investor's services offered to foreign customers in foreign countries. For the Investor to generate cash from US operations. For the US company to generate cash from its operations, perhaps even for use in future US investments. For there to be an increase in the enterprise value of the US company, rather than cash flow from operations. What is the size of the target company or companies? Approximate revenue (this can range from $5 million to $500 million or more.) ■ Approximate number of employees (this can range from 5-10 to more than one thousand.) Examples of companies that may be good targets in different sizes and stages of development: ■ A small company that has little revenue but has state-of-the-art technology and strong, active management. ■ A mid-size company that has grown as large as possible given current financial resources but is ready to expand with new financing and management. ■ An established company (of any size) that has a good network of reliable customers and contacts but aging technology and is in need of new financing, new management, new spirit, and new sources of potential business. Guide to Investing in the Freight Transportation and Logistics Industry in the United States 13
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