Assignment timeframe: Nov 1999-April 2000

Background: A financial holding company ('partner') with market leading presence in India's cable distribution and media industry, also had significant businesses in IT & telecom. They were restructuring to transform into a 'convergence' company with integrated operations across Technology, Media and Telecom (TMT). As part of this exercise, they sought to identify and develop early stage content & e-commerce ventures that would add further value to their corporate portfolio. PricewaterhouseCoopers saw an opportunity to develop a strategic partnership to provide business incubator services (called IndiaInitiatives).

Objective: Develop opportunities for PwC to offer its broad range of professional services - business strategy, financial advisory, accounting, legal and technology implementation services - to startup ventures through the business incubator initiative. As a member of PwC's strategic consulting team, I played a lead role in supporting and developing this initiative.

My role:

Structuring PwC's Intent to Partner agreement with partner

RoI and risk evaluation from PwC's perspective:
- Resource investment parameters
- Revenue model - cash & equity mix
- Parameters for successful liquidity event
- Timing parameters - Time-to-market and holding term
- Relationship building and brand equity

Consulting for portfolio ventures - opportunity discovery, qualification and advisory services:
- Shop 24 Seven e-commerce venture conceived - joint venture between partner & US-based company to set up India's first direct response 24-hour television shopping service provider - integrated, interactive e-commerce initiative using television, internet and franchised points of presence for a range of Indian and imported products.
- Media portal - business plan, valuation guidance, investor search
- Online ticketing venture - opportunity discovery
- IT services venture - market analysis and positioning
- Automobile spares marketplace - business model guidance

Results:

Partner agreement had visibility at the senior most executive level in PwC India.

3% equity for PwC partners in Shop 24 Seven out of $2.5 million equity invested in the venture.

Secured $2.5 million buyout offer for another portfolio venture.

PwC partnership contributed to 1000%+ appreciation of partner company's stock (see stock price chart)

(Partner subsequently restructured itself into a successful converged operation in telecom, media and telecom)

Email:mohitm AT alumni.carnegiemellon.edu