文档介绍：Investment Due Diligence Assessment
Disclaimer
The investment opportunity described below has not been mended or approved by Bain & Company, Inc. or any of its subsidiaries. No representation or warranty is made as to the accuracy pleteness of the information contained in this memorandum. Oliver Stratton and Jim Hildebrandt are distributing this memorandum in their individual capacities and not as representatives of Bain & Company, Inc. or any of its subsidiaries. Any investment in will not be guaranteed by Bain & Company, Inc. or any of its subsidiaries.
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Agenda
Executive Summary
Detailed Business Assessment
US Market Benchmarks
China Market Dynamics
Financials
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Attractive online recruitment market space in China with high growth potential
Differentiated click-and-mortar business model (online and newspaper) with a 16 month operating history and ~US$1M in 1999 revenue
Current #1 or #2 position in 3 key city markets ( RMS in Beijing, RMS in Shanghai and RMS in Guangzhou)
petitor has locked up exclusive relationships with key portals - maintaining #1 or #2 position appears to be a realistic goal
Capable management including head of Bain’s China practice and 3 former Bain consultants
Realistic business plan targets (in Private Placement Memorandum) with additional upside if timing of adjacent business roll-out (eBay, business models for China) is accelerated (business plan financials are 99% driven by core recruiting business)
Exposure to potentially significant sovereign risk given China’s unclear regulations on foreign ownership and operation of businesses
Expected investment returns based on business plan forecasts parable US online recruitment valuation multiples are attractive (base case: return on money, 57% IRR), but not blockbuster (high case: return on money, 99% IRR)
Pros
Cons
Summary Investment Evaluation
Executive Summary
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Executive Summary
Source: OneSource; SG Cowen Securities; Ana