T h e A l t a G r o u p – W h e r e E x p e r i e n c e P r o v i d e s D i r e c t i o n

Latin American SeminarMay 2 – 3, 2007

Presented by

The Alta Group

John C. Deane

T h e A l t a G r o u p – W h e r e E x p e r i e n c e P r o v i d e s D i r e c t i o n

GLOBAL LEASING MARKET

Experiences in Market EntryExperiences in Market EntryVertical & GeographicVertical & Geographic

The Global Marketplace

T h e A l t a G r o u p – W h e r e E x p e r i e n c e P r o v i d e s D i r e c t i o n

GLOBAL LEASING MARKET

Vertical Market Entry

Driven By Equipment or Industry Type

Relatively Easy

Should Be Aligned with Core Competencies

Brand New Space or Adjacent Space?

T h e A l t a G r o u p – W h e r e E x p e r i e n c e P r o v i d e s D i r e c t i o n

GLOBAL LEASING MARKET

Vertical Market Entry

De Novo

“Lift Out”

Purchase Going Concern

T h e A l t a G r o u p – W h e r e E x p e r i e n c e P r o v i d e s D i r e c t i o n

GLOBAL LEASING MARKET

Vertical Example

Large Captive Lessor

Global in Scope

Constrained Future Growth Rate

How to Choose Verticals?

Part Instinct

Importance of Alignment

First, Do No Harm

T h e A l t a G r o u p – W h e r e E x p e r i e n c e P r o v i d e s D i r e c t i o n

GLOBAL LEASING MARKET

Geographic Market Entry

The Global Marketplace

T h e A l t a G r o u p – W h e r e E x p e r i e n c e P r o v i d e s D i r e c t i o n

GLOBAL LEASING MARKET

Geographic Market Entry

Much More Difficult

Name a Successful Geographic Market Entrant

Bank Lessor?

Independent Lessor?

Captive Lessor?

Push Through or Pull Through?

T h e A l t a G r o u p – W h e r e E x p e r i e n c e P r o v i d e s D i r e c t i o n

GLOBAL LEASING MARKET

Geographic Market Entry

In this context, equipment leasing & financing is NOT a global business

It IS somewhat regional, but mostly local

It MUST be viewed as a core business that requires core competencies

T h e A l t a G r o u p – W h e r e E x p e r i e n c e P r o v i d e s D i r e c t i o n

GLOBAL LEASING MARKET

Geographic Market Entry

Not De Novo

“Lift Out”

Partnership

Acquisition

T h e A l t a G r o u p – W h e r e E x p e r i e n c e P r o v i d e s D i r e c t i o n

GLOBAL LEASING MARKET

Geographic Market EntryNTY Example

Pull Through

Investment Grade Vendor or Manufacturer

Modest Initial Program Volume Expectations

What are the Alternatives for the Vendor?

T h e A l t a G r o u p – W h e r e E x p e r i e n c e P r o v i d e s D i r e c t i o n

GLOBAL LEASING MARKET

Thank You

The US Marketplace