Creation of a leader in the mobile display industry
Hendy Consulting was brought in by the CEO of a leading LCD company to provide partnership options and valuation insights. The company was faced with migrating a leadership position in mainly passive matrix technology into a leadership position in high resolution active matrix displays. Hendy Consulting created the valuation and strategic framework to evaluate different potential partners and to negotiate the merger. This work was augmented with a study of the cost and design trade-offs of a-Si and LTPS LCD that led to a greater understanding of the future of polysilicon in mobile displays.
Growth through sourcing
Hendy Consulting was asked by the CEO of a leading LCD company to help then secure a continued 30% per year revenue growth trajectory. With a factory at full capacity, Hendy Consulting looked at a range of strategic options from buying new facilities, to extensions to their existing facility and potential strategic sourcing. Hendy Consulting provided a complete purchasing strategy together with panel cost targets that allowed the client to commit to several hundred million dollars of new panels in 18 months to provide a new source of growth.
Advanced materials and flexible displays
Hendy Consulting developed a marketing plan for a business in the advanced materials and flexible displays market. The challenge was delivering a strategic direction for a new material in the face of very little available market information and many potential market applications. Hendy Consulting conducted a detailed market survey of over 40 industry players and experts across the following markets to build up a strategic view and detailed product and pricing strategy: flexible displays and signage, polymer solar, inorganic EL applications, and lighting applications. Hendy Consulting delivered a comprehensive plan together with key sensitivities and contingency plans to enable the high technology client to grow with the opportunity.
Start-up growth enhancement
Hendy Consulting was called in by the CEO of a display materials start-up to help develop a negotiation plan for their technology with a major display OEM as well as validate the economic opportunity of deploying their technology as a substitute for a major material. The work led to a deal on the table for a multi-million dollar Joint Development Agreement that could lead the start-up to its next phase in the growth cycle.
Hendy Consulting worked for a major display company to develop a profit improvement plan amounting to more than $100m of increased EBIT. $20m of this was through a review of the product portfolio in terms of increased pricing or volumes and by eliminating or repricing low contributing products. The remaining $80m was derived based on a multi-peer benchmarking exercise. By building up a financial model of each competitor and aligning this with published analyst reports, we could then break out the reasons for the differences in profitability between the players. This led to a set of value improvement plans based on proven strategies already demonstrated in the market place.
LG.Philips LCD transaction
CEO of Hendy Consulting, Ian Hendy, was intimately involved on the core deal team on the Philips side of the LG.Philips LCD transaction. Responsible for the valuation and joint business planning and much of the deal scope and governance framework, he helped deliver a deal at $2-3bn below the expectations of the market. Hendy then worked for the Chairman of the board providing board level advice on critical capex decisions. LG.Philips LCD was successfully listed on both the NASDAQ and the KOSPI in 2004, at an enterprise value of over $12bn. Hendy was involved on both the initial core team but also through several subsequent rounds of revisions in the partnership between Philips and LGE. Over 5 years more than $8bn in value was created for Philips and for LGE.
Hendy Consulting advised a major semiconductor player on their options in the MEMS (Micro Electro Mechanical Systems) space identifying a concrete opportunity for the client in an unexpected area and moving attention away from the first area of consideration.
In the process, Hendy Consulting developed a strong understanding of the technical and commercial challenges faced by players in these markets and a view on the key success factors and value creation strategies.