echostream group overview 20150409

Introduction to

The EchoStream Group

Strategic Resources Finance Facilities

Cost Reduction Analysis Business Development

2

1. Introduction

2. Cost Reduction Analysis

3. Business Development

4. Strategic Resources

5. Finance Facilities

6. The Team

TABLE OF CONTENTS

Introduction Cost Reduction Development Strategic Financing The Team

3

Introduction


4

Overview

The EchoStream Group assists clients in achieving their strategic, growth and financial objectives by assisting clients with critical business development initiatives and strategic planning issues. Working with our clients as strategic partners, The EchoStream Group creates and executes winning solutions which address our clients’ most pressing strategic and financial needs.

Clients benefit from our deep product and industry knowledge, our hands-on approach and extensive relationships, as well as our ability to help define and achieve goals. Our clients rely on us for both transaction guidance and on-going strategic advice.

The EchoStream Group's professionals have senior-level credentials at both major global firms and boutique organizations. These include Goldman Sachs, Merrill Lynch, ING Group, Mercer Management Consulting, The International Finance Corporation as well as industry experience in global conglomerates. Our experience includes corporate finance, management consulting and general corporate management.


5

Our job is to help make your company’s framework, including Cost Structure, Finance Facilities, Business Development, and Strategic Resources , as effective as possible so more of the dollars you generate flow to your bottom line instead of leaking away due to hidden inefficiencies.

Capture Profits and Maximize Cashflow

Cost Reduction Analysis Working on a contingency basis to maximize your cash savings, we analyze all aspects of your business overhead, including: 1. Administrative Expenses 2. Insurance Costs 3. Human Resources Administration Costs 4. Finance + Accounting Costs 5. Marketing + Advertising Expenses 6. Telecommunications Expenses 7. Merchant Services Fees 8. Property + Utility Costs 9. Waste Costs, Freight Costs 10. Other Operational Areas

Business Development

We have hands-on experience growing profitable sales for manufacturers, having successfully built and led traditional sales teams as well as social media penetration, procurement contracts, and dealer + distribution networks.

Strategic Resources When you feel the time is right for your company. we will work with you on realizing transformational changes, including mergers + acquisitions, strategic partnerships, investment capital, critical negotiations and other issues unique to your business.

Finance Facilities We use our distinctive combination of industry and corporate finance expertise to evaluate your existing finance facilities and, if needed, help make your company more competitive. We can evaluate and obtain more efficient funding including: - Traditional bank debt - SBA-insured loans - Purchase Order financing - Factor financing - Alternative financing options


6

Cost Reduction Analysis


Value-added Staffing and Cost Optimization

7

EchoStream reboot

EchoStream’s Value Mapping Analysis identified Odyssey’s value-adding functions (that is, the steps customers are actually willing to pay for), all of which were production focused. EchoStream realigned personnel and resources to support value-adding functions, resulting in significantly more effective spending on revenue generating versus non-revenue generating payroll and expenses.

EchoStream recalibrated spending to focus on revenue generating functions.

Former management consistently spent wasteful amounts on front office costs.


Dramatic improvements in operating margins

8

EchoStream reboot

For the prior 4 years, Odyssey had generated net losses of $1.9 million. EchoStream introduced updated processes and best practices to all areas of the company and rapidly improved operating margins and profitability in 12 months.

The above photos show the old operations. The former company suffered from an overweight expense structure, including inefficient use of space, and holding onto excessive inventory and low value materials.


Cost reductions improve profit capture

9

EchoStream eliminated 13.000 square feet of inefficient and expensive floor space and introduced Lean Manufacturing practices. Projected cost savings: $868,000 over the next 5 years in rent, utilities and insurance.

UNPRODUCTIVE SPACE 13,000 square feet Returned to landlord

The old company warehoused bulky, low-value materials accumulated over 20+ years, paying unnecessary and expensive rent for non-revenue generating floor space. EchoStream eliminated the costly waste.


Scalable platform for profitable growth

10

EchoStream reboot

EchoStream optimized factory floor space to prioritize revenue-generating activities. EchoStream’s Lean Manufacturing implementation enabled the company to produce more vehicles using a smaller footprint.

Reconfiguration includes an open and fluid layout, enabling Odyssey to work on more and larger vehicles simultaneously. Waste has been eliminated.


Administrative Process Improvement

11

EchoStream dramatically modernized the administrative operations of a 35-year-old company, introducing more efficient and less costly financial, sales and marketing practices. Cost Savings: $42,000 over next 5 years in paper, printing, and storage fees.

Old Odyssey maintained traditional and inefficient methods for financial management including working in a non-digital world.


12

Business Development


Marketing Turnaround

13

EchoStream reboot

Similar to many industry peers, former management relied on expensive (and often ineffective) trade shows, ineffective print advertising and generic branding. Not surprisingly, under this outdated approach, marketing dollars spent relative to actual revenue generated were extremely expensive.

Previous outdated and expensive marketing

approach


Marketing Turnaround

14

EchoStream repositioned Odyssey as a premium brand, materially moving away from the “lowest price bidder” approach to sales. This repositioning enabled the company to increase significantly its vehicle conversion gross margins by an additional 4 to 7 percentage points.

Rebooted marketing

materials successfully

promoted the company

as a leading brand that

commands premium

pricing.


Odyssey Website Reboot

15

Visitors to www.odysseysv.com Sales Leads Generated Through Web Site

Geographic Reach of Web Site Visitors Sources of Web Site Traffic

As a result of EchoStream’s strategic online marketing, the vast majority of Odyssey’s sales are incoming inquiries either through Odyssey’s website, email, telephone or social media presence.


Highly-effective Social Media Marketing

16

Facebook Likes Over Time

Demographic Makeup of Odyssey Facebook Likes

With a limited marketing budget, EchoStream positioned Odyssey to compete in today’s Internet 3.0 world, obtaining greater reach and deeper penetration with target customers and markets than would be achieved through traditional trade shows and media outlets. These results were achieved by spending less than $1,500 in online advertising over a two year period.


B

E

F

O

R

E

A

F

T

E

R

Modernized Branding for Greater Reach

17

EchoStream performed an extensive review of the industry and recognized the vast majority of manufacturers followed similar and generic rules for their branding. Rather than repeat old-fashioned industry norms, EchoStream successfully positioned Odyssey to distinguish its brand in an Internet 3.0 world of customers.


B

E

F

O

R

E

A

F

T

E

R

Customer Experience Validates Re-branding

18

Odyssey’s legacy facility gave the impression it was primarily a job shop or garage.

EchoStream recognized the importance of presenting the company more professionally

to service increasingly demanding and sophisticated clients.

Old Odyssey’s front entrance – customer first impression EchoStream Odyssey’s front entrance – customer first impression


B

E

F

O

R

E

A

F

T

E

R

Customer Experience Validates Re-branding

19

To re-brand Odyssey as a premiere brand, EchoStream recognized the value that

simple, cost efficient upgrades would create for paying customers.

Total cost of customer experience improvements across the entire facility: $3,900

Old Odyssey’s customer conference room EchoStream Odyssey’s customer conference room. Twice as large using formerly inefficient space.


EchoStream Media Coverage reboot

20

EchoStream’s bold and energetic approach to the industry was recognized widely across media outlets, providing valuable branding opportunities, product recognition and marketing exposure.


Positioning as a Thought Leader

21

“New Jersey is certainly fortunate to have Odyssey Specialty Vehicles investing in our future.” Kim Guadagno New Jersey Lieutenant Governor “Thank you for your leadership throughout the tri-state communities, and I look forward to our continued cooperation.” Maria Contreras-Sweet 24th Administrator of the US Small Business Administration Member of President Obama's Cabinet “Odyssey provides a vital product that emergency personnel depend on. [Emergency personnel] need the confidence of this strong Made-in-America and New Jersey brand and I enjoyed seeing firsthand their expertise in helping first responders utilize state-of-the-art equipment.” Leonard Lance New Jersey Congressman (NJ-07) Vice Chair of the House Energy and Commerce Subcommittee on Commerce, Manufacturing and Trade

EchoStream’s wide network of relationships both inside and outside the industry further enabled the company to distinguish itself among peers.


Emergency Vehicle Manufacturers Expo

22

“Great Show!! A lot of diversity of vendors and product types!! If you missed the first ever show plan on attending next year!!” - Kimball Midwest

Brand Awareness Reach Company contacts (regional): 2,989 emailed NJ Legislators, public officials: 110 emailed NJ Law Enforcement: 500 direct mailings Facebook: 13,000 followers Online and print advertising: Numerous channels

In 2014, EchoStream organized the Emergency Vehicle Manufacturers Expo to showcase the best and brightest in the emergency vehicle industry. The Expo dramatically raised brand awareness for Odyssey as the sponsor and dramatically reinforced the sponsor’s positioning as an industry thought leader.

The Expo was beneficial to the entire emergency vehicle industry for providing new and innovative solutions. - Federal Signal


Emergency Vehicle Manufacturers Expo

23

“This is a valuable show for any end users in the EMS, Fire and Law Enforcement fields to get detailed knowledge of the specialty vehicles that are available to them and at the same time speak to manufacturers who can add to the vehicles’ performance through products that can be added.” - Pelican Products

Importantly, 100% of the show was controlled by the sponsor, ensuring maximum visibility and return on investment. The out-of-pocket cost for the show was only $10,000 – substantially less than many regional trade shows.

As an industry-wide event, the Expo featured numerous presentations and events, including a live demonstration by the Morris County Sheriff’s K-9 Unit.


24

Strategic Resources

Financing Introduction Cost Reduction Development Strategic The Team

Critical Review with Actionable Goals

25 Financing Introduction Cost Reduction Development Strategic The Team

Prior to acquisition, EchoStream identified critical areas for improvement, cost savings and business growth, and prioritized a 100-day action plan towards profitability. On-going monitoring enabled management to assess effectiveness and progress.

B

E

F

O

R

E

A

F

T

E

R

Introduction of Industry Best Practices


EchoStream modernized operations and infrastructure to increase throughput, using cost-effective technology to improve man-hours and efficiency.

EchoStream upgraded archaic management and communication systems with low-cost and real-time information management tools to increase bottom-line profit capture.

B

E

F

O

R

E

A

F

T

E

R

Before and After 3 – Lean Manufacturing


At the time of acquisition old Odyssey had extensive delays on customer deliveries and limited sales. EchoStream grew sales and increased production.

August 2013 Production Status June 2014 Production Status

28

Representative Transactions – Consulting

Engagements performed by EchoStream Group teams member while at a predecessor firm.


29

Representative Transactions –

Business Development: Client Acquisition

Acquisition of new institutional clients for a wide range of Duff & Phelps

advisory services, focusing on clients in the U.S and Europe. Successfully

acquired numerous new, significant and recurring advisory engagements.*

2007 – 2010

Government of Panama

Awarded the mandate for financial modeling validation for certain Panama

toll roads.*

2010

Awarded the mandate for economic analysis of a potential transaction for

Louis Armstrong New Orleans International Airport by Goldman Sachs.*

2010

Industry Funds Management

Awarded the mandate for annual valuation of certain infrastructure

investments managed by IFM.*

2010

Awarded the mandate for financial valuation analysis of Morgan Stanley

Infrastructure Fund’s valuation of Chicago Parking Meters.*

2010

Engaged by BlackRock to provide valuation review of certain private equity

co-investments.*

2008


Engagements performed by EchoStream Group team members while at a predecessor firm.

30

Finance Facilities


31


Private Equity Capital

$4.0 billion North American infrastructure fund investing in toll roads,

power, water, airports and critical assets.*

2010

Sprout Capital VII, LP

$250 million venture capital fund focused primarily on US investments.*

1994

Apollo Investment Fund III $1.5 billion private equity fund*

Apollo real Estate Fund II

$570 million real estate investment fund*

1995

Baring Central European Fund, LP $100 million investment fund for Central

European leveraged buyouts.*

2001

Mezzanine Management Fund III, LP $530 million fund to provide mezzanine

and equity investments for leveraged buyouts.*

2000

DLJ Merchant Banking Partners III, LP $3.0 billion middle market private equity

fund.*

1996


Engagements performed by EchoStream Group team members while at a predecessor firm.

32


Corporate Finance Advisory

Food Manufacturing Company

[Client Name Confidential]

M&A advisory for the purchase of an established food manufacturing company

by private investors.

2014

Advisory services for $3.0 million Series C financing round for

an online sports provider.

2012

Healthcare IT Company [Client Name Confidential]

M&A advisory for the refinancing and eventual sale of a software consulting

firm.

2014

Developed institutional marketing documents for presentation to lenders

and investors for an environmental wastewater company.

2012

Identified and executed multiple

initiatives to expand existing lines of

revenue and open new revenue

streams for a commercial integration

company.

2012 – 2013

Global Cities Hotel Fund, LP Provided business development and

marketing services to a potential investment fund backed by Starwood

Capital.

2012


Engagements performed by EchoStream Group team member while at a predecessor firm.

33

Representative Transactions – Due Diligence and Analysis

Valuation review of a $1,0 billion portfolio

of US and European private equity

investments.*

2009 - 2010

Independent review of valuation and

administrative policies for AIG Capital

Partners, Inc.*

2008

Valuation review of Blackrock’s private

equity holding of Harrah’s Entertainment

Inc. and Select Medical Corporation.*

2008

Valuation analysis for a potential

acquisition of a diversified portfolio of

private debt investments.*

2008

Valuation review of various Fortress

private equity and private debt portfolio

holdings encompassing 50+

investments.*

2007 – 2010

Valuation review of private debt

investments to determine fair value of

individual holdings.*

2008


Engagements performed by EchoStream Group team member while at a predecessor firm.

34

The Team


Professional Credentials

Daniel Huang, Managing Director – Daniel brings to bear over 20 years of professional experience advising a broad array of companies, ranging from specialized start-up situations to multi-national corporations. Daniel has worked for Goldman, Sachs & Co., Merrill Lynch and Donaldson, Lufkin & Jenrette and other major investment banks advising a broad array of corporations and investors on private capital funding opportunities. He has been actively involved in capital raising engagements encompassing in excess of $10 billion. Daniel has advised and raised capital for a wide range of investment sponsors and strategies, including private equity, venture capital, infrastructure, real estate, emerging markets, hedge funds and specialized situations. He has been actively involved in raising capital from public and private pension funds, banks, insurance companies, financial institutions, foundations, endowments, consultants and financial advisors in North America, Europe and Asia. Daniel earned his M.B.A. from The Wharton School, University of Pennsylvania, in Finance and Entrepreneurial Management and his B.A. from New York University in Economics.

Jaspal Singh, Managing Director - Jaspal Singh has an extensive background in finance, accounting, and investment management resulting from his prior work at Bank of America Merrill Lynch and predecessor firms and currently serves as Chief Financial Officer of EchoStream Motor Group. Jaspal has spent a majority of his career working in Merrill Lynch's global institutional consulting division that managed over $100 billion in assets. Jaspal was responsible for managing product development to service the investment needs of Institutions with over $50 million in individual assets. Jaspal earned his M.B.A. in Finance, Accounting, and Business Law from the New York University Leonard N. Stern School of Business and his B.A. in Economics from Swarthmore College.

Senior Team Members

35 Introduction Cost Reduction Development Strategic Financing The Team

Professional Credentials

Theresa Menders, Managing Director - Theresa is a senior strategic executive with over 15 years of in-depth financial, operating and strategic consulting experience. Theresa has led or participated in a significant number of complex, multi-faceted advisory engagements, with senior management roles in both global institutions and start-up platforms. She has provided strategic and operational advisory services to global pharmaceutical companies, hospital systems, and leading medical device manufacturers. While at Mercer Management Consulting, Theresa advised Fortune 500 companies, a broad range of international conglomerates, and governmental authorities in the United States, Latin America and Eastern Europe. After Mercer, Theresa created a global growth strategy and operational redesign for the medical device division of a leading global electronics company. Theresa also directed the North American business lines of European-based financial advisory and consulting firm. Theresa earned her M.B.A. from The Wharton Graduate School of Business, her M.A. from Johns Hopkins University and her B.A. Magna cum Laude from Dartmouth College.

36 Introduction Cost Reduction Development Strategic Financing The Team

37

Contact Information

One Nelson Ridge Road Princeton, NJ 08540

Tel: +1 (646) 425-0046 www.echostreamgroup.com

echostream group overview 20150409

Documents