1
From the Idea to the FinancingNothing is
Impossible
Barry D. Lederman, Managing Partner Shelbourne
Capital Partners LLC Bulgaria Investment
Forum April 14-15, 2004 Sofia
2
General Requirements

• Strong Business Case and Management Team
• Hands-on and Visionary Founder
• Comprehensive and Honest Market Assessment, both
  Domestic and International
• Professionally Prepared Business Plan and
  Financial Model
• Sound Legal and Investment Advice
• Beauty Pageant Approach for Qualified Interested
  Investors

3
General Mistakes

• Not providing for alternative investors and
  structures
• Over-promising in the business plan and financial
  engineering of future cash flow, creating
  unrealistic expectations at outset
• Under-estimation of initial capital and
  successive requirements
• Poor first 90-day post-investment execution
  strategy
• Do-it-yourself attitude to outside professional
  services
• Failure to supplement pals with credentialed
  management team and board members

4
Raising the Money

• Do your homework
• Research financing sources and their preferences
  in prior investments
• Study comparable recent deals in the industry
• Look for international investors
• Network, network, network
• Structure any debt financing cautiously and
  intelligently. Get a second opinion.
• Employ professional legal and financial advisors
  and let them carry the ball. Dont be afraid
  to pass the ball downfield.

5
Closing the Deal

• Do not compromise your business plan walk away
  from a bad offer
• Take more money than you can handle and find a
  way to put it to work
• The relationship with the investor is as
  important as his investment in the company
• Negative types of control for founder
• Consummation of the deal is like a marriage

6
Shelbourne Capital Partners

• Investment and strategic advisor
• New York, Los Angeles, San Francisco, Zurich,
  Munich, Sofia, Istanbul
• Management background
• Investment planning and financial principals
• Extensive experience in media, including film and
  TV
• Business partners
• Constellation Partners
• Van der Moolen, New York Stock Exchange
  Specialists
• Financial Dynamics, Financial Public Relations
• Jenkens Gilchrist, Attorneys
• Big four accounting firms

7
Our Deals

• Media, entertainment, communications, and
  technology opportunities
• U.S. and European deals
• Real Image Digital/Technicolor/Thomson S.A.
• Digital Cinema Solutions
• Flexplay
• BrandX
• The Advisory Council
• Boyana Film Studio
• Southeast European Financial Consortium
• Private Equity Opportunities in Bulgaria and
  Turkey

8
SEE Opportunity Boyana Film Studio

• Leading motion picture production and
  post-production facility in Southeast Europe
• Pan-European and American strategic and financial
  partners
• Extensive Hollywood creative, technical and
  professional relationships
• Growing international demand for low-cost
  production services
• Strong management team and partnership
  opportunities

9
Boyana Film Studio Beyond the Obvious

• Opportunity to enhance Bulgarias national image
  and attract the attention of the global
  entertainment industry
• Professional training in US film academies for
  Bulgarian craftsmen, actors, and film executives
• Education for children from Bulgaria and the
  region
• Entertainment, media and technology park

10
Impossible is Nothing

11
Coordinates
Barry D. Lederman Managing Partner The Chrysler
Building 405 Lexington Avenue New York, NY
10174 Tel. [phone] Fax [phone]
6157 Email lederman_at_pacbell.net

• Allen Collinsworth
• Vice President, Turkey
• collinsworth_at_seefc.com

Rado Petkov Vice President, Bulgaria petkov_at_seefc.
com
Los Angeles San Francisco
Munich Zurich