Wholesale Investor National Investor Survey AUGUST 2009 RESULTS
Wholesale Investor Database Breakdown Anonymous online Survey Conducted on 4th August 2009 to entire Wholesale Investor registered database of 4,286 individuals.
Professional 7.0%
Venture Capital 5.0%
Private Equity Professional 12.0%
Private Investor 45.5%
CEO / Entrepreneur 30.5%
Age Age
%
Below 30
16.6%
31 – 40
25.8%
41 – 50
23.5%
51 – 60
25.4%
61 – 70
8.7%
25.8% 16.6%
8.7%
Below 30
31 - 40
Type Of Investments Sought Managed & w holesale funds 4.1%
41 - 50
51 - 60
61 - 70
Of the respondents, 94.4% were male; 5.6% were female.
Preferred Investment Style
Bonds 3.0%
Acquisitions only 17.1%
Public companies 16.0%
Property opportunities 17.6%
KEY POINT: 74.7% are aged between 31 and 60.
25.4%
23.5%
Private companies 59.3%
Strategic Investor (2) 26.9%
Passive Investor 28.6%
Active investor (1) 27.4%
(1) Active investor (become actively involved in investee company). (2) Strategic Investor (leverage IP/distribution). (Note: respondents could select more than one option)
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Your Views On The Current Investment Environment Response
%
Now is the BEST time
26.5%
Now is a very GOOD time
55.0%
Now is an OK time
17.5%
Now is NOT a GOOD time
1.0%
KEY POINT: 81.5% are bullish about investing right now.
55.0%
26.5%
17.5% 1.0%
Now is the BEST time
Now is a very GOOD time
Now is an OK time
Now is NOT a GOOD time
Type Of Investments That Are Of Most Interest (Note: respondents could select more than one option) Response
%
Direct equity Strategic investment through the issue of fresh capital.
68.0%
Distressed assets - Opportunistic deals that are significantly undervalued or in VA.
Distressed assets
Response
%
Asset purchase Acquiring some or all of the assets of existing businesses.
55.0%
High yield returns 55.0%
32.0%
Bolt on acquisitions - Add to their existing investee companies / investments.
68.0%
22.0%
Public to private -
High yield returns - High profit margin producing strong dividend yields.
Direct equity
Bolt on acquisitions
24.0%
Asset purchase
10.0%
Bridging finance Short term lending at higher interest rates.
22.0%
Public to private 24.0%
Taking public companies private and re-floating at later date.
32.0%
5.0%
10.0%
Bridging finance
5.0%
Funds Under Management / Capital Available Response
%
< $500,000
45.1%
$500,000 to $1m
20.0%
$1m to $5m
21.0%
$5m to $10m
4.5%
$10m to $50m
3.4%
$50m to $100m
1.5%
$100m to $500m
1.2%
$500m to $1bn
3.3%
45.1%
KEY POINT: 34.5% have $1m or more to invest.
20.0%
21.0%
<$500,000 $500,000 - $1m - $5m $1m
4.5%
3.4%
1.5%
1.2%
3.3%
$5m $10m
$10m $50m
$50m $100m
$100m $500m
$500m $1bn
Percentage Of Portfolio In Cash Vs Deployed Response < 10%
% 25.5%
10% to 20%
6.6%
20% to 30%
12.2%
30% to 40%
8.2%
40% to 50%
7.6%
50% to 60%
8.0%
60% to 70%
6.5%
70% to 80%
4.4%
80% to 90%
6.6%
90% to 100%
14.4%
25.5%
KEY POINT: 60.1% have half or less of their funds deployed at the moment.
14.4%
12.2% 8.2%
6.6%
< 10%
10% to 20%
20% to 30%
30% to 40%
7.6%
40% to 50%
8.0%
50% to 60%
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6.5%
60% to 70%
4.4%
70% to 80%
6.6%
80% to 90%
90% to 100%
Number Of Investment Opportunities Reviewed Each Week Response
%
Less than 5
71.0%
6 to 10
18.0%
11 to 20
8.0%
21 and above
3.0%
KEY POINT: 29% review more than one deal per business day.
71.0%
18.0%
Less than 5
6 to 10
8.0%
3.0%
11 to 20
21 and above
Most Important Deal Attributes When Making Investment Decisions Response
%
Strength of Management Team
77.0%
Proof of concept
51.0%
Sector
50.0%
Clear path to exit Quality of business plan
Management Team
77.0%
Proof of concept
51.0%
45.5%
Sector
50.0%
44.0%
Clear path to exit
45.5%
Financial projections
30.0%
Historical earnings
25.0%
Quality of business plan
44.0%
Quality of the pitch
12.0%
Ability for follow on rounds
10.0%
Historical earnings Quality of the pitch Ability for follow on rounds
Contrary to popular belief, “Historical Earnings” ranks th 7 and “Quality of th Pitch” ranks 8 .
30.0%
Financial projections
KEY POINT: Management strength is by far the most critical factor when raising capital.
(Note: respondents could select more than one option.)
24.5% 12.0% 10.0%
Equity Stake Sought Response
%
Less than 5%
27.0%
6% to 10%
9.0%
11% to 20%
24.0%
21% to 30%
20.0%
31% to 50%
9.0%
51% and above
11.0%
24.0%
27.0%
Less than 6% to 10% 5%
11% to 20%
Sectors Of Most Interest Right Now (August 2009) Response
%
20.0% 9.0%
11.0%
31% to 50%
51% and above
9.0%
21% to 30%
KEY POINT: 89% do not seek to control the company when investing.
(Note: respondents could select more than one option)
Green tech/cleantech
Green tech/ Cleantech
50.0%
Internet/IT
41.0%
Financial services
35.0%
Financial services
Property
33.0%
Property
Health/Aged Care
31.0%
Biotech
29.0%
Industrial/Engineeri ng
28.0%
Education/Training
25.5%
Retail
20.0%
50.0%
Internet/IT
41.0% 35.0% 33.0%
Health/Aged Care
31.0%
Biotech
29.0%
Industrial/Engineering
28.0%
Education/Training
25.5%
Media
19.0%
Mining
19.0%
Retail
Telecommunications
14.0%
Mining
19.0%
Other
12.0%
Media
19.0%
20.0%
Telecommunications
14.0%
Other
12.0%
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Biggest Challenge When Finding And Making Investment Response
%
Finding suitable opportunities
49%
Companies are un-prepared
41%
Valuations too high
33%
Inflexible founders/ promoters
19%
Too many to choose from
16%
49% 41%
Finding suitable opportunities
33%
Companies are unprepared
Valuations too high
Short Term View: On Australian Economy – Next 2 Years Pessimistic 5.5%
19%
16%
Inflexible founders / promoters
Too many to choose from
KEY POINT: Companies seeking capital need to focus on 3 main areas: Connecting with investors, Being investor ready and being realistic on the valuation. If they achieve this, their chance of raising capital will dramatically increase.
Long Term View: On Australian Economy – 2 To 5 Years From Today
Concerned but optimistic 35.5%
Pessimistic 4.6%
Optimistic 59.0%
Concerned but optimistic 22.0%
Optimistic 73.4%
KEY POINT: 93.5% of investors are optimistic about the Australian economy over the next 2 years.
KEY POINT: Investors are extremely optimistic about the Australian economy over the longer term.
Would Invest Into An Early Stage/Start-Up If: 1. Strong Board & Management In Place
Key Point: 87% of investors would back a start-up, meeting top 2 criteria.
%
No
12.5%
Source of Financial / Business Information
36.0%
smartcompany. com.au
23.0%
The Australian
22.0%
news.com.au
21.0%
Sky Business News
17.0%
businessspectator .com.au
16.0%
afr.com
12.0%
Other
56.0%
56.0% 36.0% 23.0% 22.0% 21.0% 17.0% 16.0% 12.0%
The Australian
BRW
71.0%
smartcompany.co m.au
71.0%
BRW
%
Financial Review
Financial Review
Response
(Note: respondents could select more than one option) KEY POINT: The AFR remains the most popular source of finance and business information.
Other
12.5%
afr.com
No
87.5%
Yes
businessspectator. com.au
87.5%
Sky Business News
Yes
news.com.au
Response
2. Was In Investors Preferred Sector
For Further Information Please Contract …
Reuben Buchanan
Email: r.buchanan@wholesaleinvestor.com.au WHOLESALEINVESTOR.COM.AU Page 4 of 4
Mobile: 0422 186 686 Office: 1300 597 595