Central Semiconductor Manufacturing Corporation

1
Central Semiconductor Manufacturing Corporation
Post Investment Relevant Issues to
Consider FRANK LAI CFO, Central Semiconductor
Manufacturing Corporation
Hong Kong Venture Capital Association Private
Equity Conference September 22, 2003
2
POST INVESTMENT NOW WHAT?ISSUES TO CONSIDER

• Governance
• Financial
• IT (database backup)
• Management (management injection? Audit
  committee?)
• General compliance (Sarbanes-Oxley)

3
POST INVESTMENT NOW WHAT?ISSUES TO CONSIDER
(Cont)

• Business integration (in case of acquisition)
• Formation of Governance Team (Audit committee,
  renumeration committee)
• Develop and track performance metrics short-term
  long-term
• Define interface guideline and cross-training
  program
• Tap into investor resources
• Vendors, customers, strategic partner network
• New funding sources

4
POST INVESTMENT NOW WHAT?ISSUES TO CONSIDER
(Cont)

• Communication
• Balance of expectations among
• Management vs New Board/ New investors
• (In case of acquisition) parent team vs
  subsidiary team

5
POST INVESTMENT NOW WHAT?ISSUES TO CONSIDER
(Cont)

• Communication Channel

6
POST INVESTMENT NOW WHAT?ISSUES TO CONSIDER
(Cont)

• Cultural alignment New Culture vs. Old Culture
• Risk management (employee lockup, incentive
  scheme, etc)
• Exit planning (IPO?)