To Grow a Business --You Need Equity Planning 6.0

When will the pandemic end? The answer remains unknown. Ultimately, you should be ready for the worst and have a solid strategy in place.

To all entrepreneurs,

Are you and your shareholders mentally prepared for the worst to come, or the high risk “wait-and-see”strategy is your one and only approach to the pandemic?

Rather than merely waiting in the war zone, get your weapons and gear up, identify the business opportunities around you.

Yes, it is not an exaggeration to call this a war as business can be shuffled out anytime, regardless of their sizes.

The internal consolidation has to be done by business owners and shareholders altogether.

Pony Ma once said:

“The world is cruel. The fall of business can happen anytime, anywhere, to anyone, regardless of the business sizes.”

Therefore, entrepreneurs and shareholders should consolidate internally to deal with this economic war. First of all, entrepreneurs should be on the same page with shareholders, pay attention to the general business direction (because it will be your navigator), and then formulate a strategy.

Shareholders are the core foundation for the development and survival of a business. Once any shareholder refuse to sail along towards the same business direction, the “ship” will have difficulty sailing to the destination.

Just like the ancient times of war, the military law stipulates that “those who don’t know the mountains and rivers are in danger”, hence a GOOD GUIDE is the key to victory.

Therefore, to ensure optimum result, the company must find the general direction and communicate with the team. If you as the top leader of company has failed to get shareholders to sail along with you, how can you let your followers (employees) understand your direction and goals? How can everyone work together to face this economic war?

Pony Ma once said:

I think Tencent’s success is because of its technology, products and user experience. Second, a sound team and a sound shareholder structure are also very important.

To all entrepreneurs, we must grasp the following in 2021:

1. How could shareholders stand on the same page, so that everyone sees the same general direction?

2. How to bond shareholders in this economic war so that everyone can have a tacit understanding and reach the destination together?

Sign up the To Grow A Business, You Need Equity Planning 6.0- Grab the Bull by Its Horns event. Attending this event will allow you and your shareholders to stand on the same page.

Just follow the shareholding structure allocation and shareholders’ disputes can be solved? The company will be able to grow wealth from there?

If an equity structure design is as easy as allocating from number 1 to 9, where even a 5 years old child would be able to solve such simple mathematic question, why would successful companies be seeking advice from equity planning gurus?

Many companies allocate their equity according to the “capital contribution" or "proportion allocation“, however, it may seem fair on the surface but in fact, they have just planted a timed bomb the “biggest hidden threat”.

The importance of “Art” between shareholders, is so much more significant than the business model, because when the “Art” is lacking, no matter how great the business model is, you can never implement anything in place, resulting in a business that will never grow bigger!

The “Science” and “Art” between shareholders must be marvellously built, so that all your shareholders will go through thick and thin with you, and make your business grow towards greater heights!

Shareholding structure set right = you grasp the necessary shareholding power

Shareholding structure marvelouslly done = you will always be in control

The percentage within an equity structure is more than just mathematic question, there is “Science” in it.

While the harmony between shareholders, equivalent to “second marriage in lifetime”, which is also known as the “Art”.

For example:

In this case study,

Shareholder A wants to hold 51%, whereas Shareholder B wants controlling power, here comes the dilemma – who should hold the 49%?

When both of them want 51%, can the total equity become 102%?

Truth or Myth?

Tencent – The Key Battle

Tencent has five key co-founders, and they overlook each respective core areas in Tencent. When they start-up the business back in November 1998, their office was extremely poorly equipped, and they can only eat lunch boxes and sleep on the couch daily, however, with the drive in pursuing the same dream, they worked relentlessly.

Their journey were full of challenges, from sleeping on couch, receiving court letters from the United States district court, cash drained to almost leftover only 10,000RMB, salary cut for all founders, going everywhere to look for loans, Tencent shares were once looked down by their friends who rather not get back any money than to hold Tencent shares, to the extend that even when they wanted to gift away the entire company and yet nobody wanted to take it.

Some objected the initial equity distribution and preferred to determine the shareholding ratio base on capital contribution, but Ma Huateng (Pony Ma) firmly disagreed.

He even expressed that his portion can be reduced to less than 50%, to avoid the company falling into a dictatorship situation, at the same time, his portion will still be the largest portion, so that there will always be a leader to lead and avoid the company from falling into chaos.

Such equity distribution ratio was set after careful considerations by Pony Ma, in addition to the above reasons, he also considered the personality issues and nature of work of all shareholders, these are the key areas impacting a company’s future key decisions.

PONY MA’s Tencent core team is amusing, each team member has unique characteristics and strengths, and they succeed in working together towards the final goal, which should also be attributed to the great initial intentions of Pony Ma in building this team.

Under the coordination of Pony Ma, the shareholders have ride through every storm and shared wealth together in Tencent all along. No matter how complex the company has become, the 5 key shareholders have always remained in line in any decision making for the company.

On top of that, before Tencent went listed, the company has gone through the worst share structure period with its second venture capital investor “MIH Ventures” with the shareholding ratio of 5:5, how did Tencent overcome this worst share structure challenge?

Truth or Myth?

In Malaysia, the YYC Group is a local real-life success story; in overseas, the success story is Tencent.

Let’s look into the real-life success stories.

In the case of YYC, the shares are divided equally between the YYC Group Chairman and CEO, as the second generation succeeded the 30 staff accounting firm from the founder and grown into an almost 800 staff group of companies, moreover, YYC Group has also won the attention of OCBC Bank to invest and become strategic partner of YYC in year 2019.

As for Tencent, the key shareholders in Tencent has been through every hard times from the company start-up and equal equity structure with MIH Ventures, their strengths are pulled together to drive the company towards getting listed, as a result, five billionaires and seven multi-millionaires were made. At the same time, MIH Ventures jumped from $60million USD to

$600 million worth in just two years.

From this successful example, it shows that even if your shares are distributed equally between 3 or 4 shareholders, although it may seem that the rights are divided equally, as long as you grasp “high leadership skills + ”Art of Equity Planning” + “Strategic Brain”, you could be the next Ma Huateng of Tencent.

*Note: Tencent upon start-up was only 50,000 RMB, and now the Company PE ratio has increased 45 times, the equity value has even increased to 5.41 trillion HKD.

Done Right

⇓

“Science” + “Art” + Everchanging “Business Model”

Have you done these 3 right?

To grow a business, you must first manage the “Science” and “Art” in equity planning.

A marvellously built equity planning is an “essential growth framework” for a company

A. Equity Distribution Methods – The Science in Equity Planning

B. “5 Major Arts” that a Shareholder or Director Must Grasp

C. How to Embrace and Methods in Mastering the “5 Major Arts”

D. Combination of Science & Art : 1+1=11 – Types of Equity

E. Equity Planning - Decision Making Power, Management and Ownership

- Pros and Cons of various types of equity planning

F. Duties and Rights of Shareholders and Directors

G. How to Recover from Equity Allocation Mistakes, Resolve Disputes and Adjust

H. Local Practical Cases vs. Foreign Real Cases

Experts are here to teach you:

If shares are not distributed properly, it will be like having a time bomb, your business is at risk of getting endless shareholders disputes anytime, even to the extend of going on court for lawsuits and worst of all risking your company to end up in deadlock.
The company can only grow smoothly only by mastering equity planning, director allocation and Art of equity.
As a leader of an enterprise, it is important to clarify the shareholders’ ownership rights, management rights and controlling rights within the equity planning, allowing shareholders and directors to be clear on each other’s responsibilities and niche.

Is this equity distribution fair? Is this the right structure for your company? Will a good business model with good performance be able to grow rapidly when it owns a marvelous equity distribution?

In fact, even some 100% shareholdings company can do very well, such as Dyson, however, the equity distribution structure did not work for some other businesses. On the other hand, some businesses grown big with 5:5 equity distribution structure, but some even when the structure is 7:3 or 6:4, the business may still not grow, why is that so?

Case Study

Equity Distribution

A: 47.5%

B: 20%

C: 12.5%

D: 10%

E: 10%

We'll teach you the Five Major Arts system that YYC has created exclusively for 47 years. In the Five Arts, we will show you why shareholders should have the Five Arts. They are BHAG, Big Picture, Trust and Chemistry, Duty Thinking and Values.

These five arts are like the five fingers of the mountain, which you need to keep close to you.

Experts are here to teach you:

A. How to do the art of equity well

B. How to Embrace the Five Arts and Master the Five Arts Methodology

To increase performance, profit or even to transform the business, “share motivation" is a method adopted by many successful enterprises, such as Tencent, Starbucks, and Alibaba, etc.

Experts are here to teach you:

A. 3 share motivation schemes that are proven useful

B. Different motivation initiatives to use at various scales of enterprise

C. Matters to look out before implementing share motivation

D. 11 steps to implement share motivation

E. The common pitfalls and traps

F. Equity incentive agreement

G. Local practical cases vs. real foreign cases

Local Real Case Study:

Taking the YYC Group as an example, different types of share motivation are also used throughout the journey of 47 years of growth, by meeting the company’s scale and target needs at different stages.

Real-life case studies will be shared to tell you:

How did employee A cash out his shares with 21times profit?

Why would employee B who invested RM45,000 in the business back then, who has achieved 93 times return on investment, still staying with the company?

Equity Planning and Motivation Schemes, must also change in time when there are changes in the scale of business, otherwise you shall beware of the various possible after-effects and distressing situations.

How did Tencent recover the equity distributed to existing shareholders and reuse it for share motivation? How did Tencent once again recover the equity distributed for share motivation and reuse it to motivates another group of executives? How did all this work in Tencent which made the company keep growing?

Company valuation, literally means to evaluate a company to check how much the company is worth.

Companies need valuation to:

Evaluate pay /effort vs return

Determine the investment ratio of investors

Valuation before and after share motivation (employees’ effort vs return)

Recovering equity

Selling a company

What is the gap between the real and the ideal valuation

A. Valuation Calculation Methods for companies at different stages and in different industries

B. How to calculate a company valuation before and after financing

C. How to constantly adapt business model and find the “right” profit model

D. Major strategies to increase company valuation

- more than just growing profits, find out how to “multiply your market profits” and “grow big”

Local Real Case Studies:

YYC founded its business with only RM5,000, which became more than 10,000 times now, in addition to that, in 2019, OCBC Bank has became a shareholder and strategically invested in YYC Group. How did the company do this and attract OCBC Bank to invest in YYC as a shareholder? How the company valuation is determined?

- By comparing your start-up cost and the business value now, how many times has the value grown?

If an investor wants to acquire your business, how much should you sell it?

- Experts will teach you on the spot how to calculate the current value of your business and the value you anticipate in the future.

Increasing share value is the ultimate goal of business owners, once you miss the opportunity to increase the company’s value, you might still end up empty handed even after so many years of efforts invested in the business.

- Company valuation whether its high or low, indirectly impact on business succession and whether will talents join your company.

Therefore, mastering valuation now means mastering the future of your company!

Experts are here to teach you:

The initial intention of starting or succeeding enterprises varies from person to person, but there are only few paths to reach as the final roadmap, which include:

1. Listing

2. Selling

3. Inheritance (family members / employees)

4. Close down

Experts are here to teach you:

A. Find out your most suitable door to future

B. How to find your door to future

C. Pain Point of Inheritance: Both sides don’t like each other – learn how to solve it.

D. Listing - how to calculate and exchange equity by using natural and stimulated growth strategy + Roll Up Strategy

To grow your business, what have you been doing? Are you growing just profit or market profit?

Because it will determine whether you are “taking small steps” or "flying in big steps". Find out whether your valuation is five times or thirty times!

To grow a business, the goal must be set clearly towards – listing.

Are you making profits or market profits? Should you get both at the same time and multiply?

Special speakers are invited to share with you and help you explore enterprise expansion journey:

A. In getting listed, what plans should a company prepare? What is the listing process?

B. Why choose to list in Hong Kong or Malaysia?

C. Explore the topics in succession, mergers and acquisitions and listing with our experts, find the best ways to implement various plans and getting solutions for problems you may encounter

D. Before and after listing – Sharing The Real Experience

What does a PE look into when considering whether to invest in a business

You have probably heard of the term Private Equity (PE) and wondering “Why Private Equity” and how important is it.

The good news is, we are getting experts to answer your questions about how Private Equity can create values and key strategies to your business:

- What is Private Equity?

- How can Private Equity add values or stimulate my business growth?

- Why do I need Private Equity?

- Why should I get funding from Private Equity instead of banks or any other investors?

- What are the criteria that a Private Equity used to judge a potential business?

Meet Your Coaches

CEO of YYC Group - a 47 years strong standing homegrown accounting and business advisory group.
over 20 years of professional experience in public accounting, tax and business advisory.
expert in finance, market strategy, sales strategy and law matters.
she estimates the YYC Group is already in the top 10 accountancy firms by size and can rival the Big Four locally.
Being the second generation in the family business, she has grown a team of 50 staff accounting firm to almost 800 staff group of companies today, which is also trusted by 10,000 entrepreneurs.
She has also tripled the business revenue since 2016, and won the attention of OCBC Bank in 2019 to invest and become strategic partner of YYC.
She is also a frequent speaker for seminars organised by China Press, Nanyang Siang Pau, Malaysian Institute of Accountants (MIA) and various trade associations such as Malaysia Retail Chain Association (MRCA), Master Builders Association Malaysia (MBAM), The Timber Exporter’s Association of Malaysia (TEAM) and many more. Moreover, she is always invited by the media as the main speaker for business programs.

Datin Yap Shin Siang (Datin Shin)

YYC Group CEO & Finance Expert

Malaysian Companies’ Business Advisor
Equity planning Expert
Member of Malaysian Institute of Accountants (MIA)
Member of Chartered Tax Institute of Malaysia (CTIM)
More than18 years of experience in helping SMEs and Public Listed Companies.
Experienced in industries such as manufacturing, construction, multimedia, wholesale, trade and retail, etc.
“Share Motivation” expert, with extensive practical experience and firmly believed that every SME has the potential of getting listed!

ME Kong

YYC Group Business Advisory Director

Dang Tai Luk

Founder and Group CEO of Mynews Holdings Berhad

Operates myNEWS chain of convenience stores
Listing on the main board of Bursa Malaysia in 2016
Built a distinctive proud Malaysian homegrown brand
In Dec 1996, together with his family Luk opened the first run-off-the-mill newsstand of 200 sq ft. Today this single newsstand has grown to a chain of more than 500 stores.
He won the award EY Entrepreneur of The Year 2019 Malaysia.
He is currently a Mentor of the MBA Business Mentorship Programme, Xiamen University Malaysia.

Special Guest: CEO of Listed Company

PARAMJIT SINGH

Country Head, Malaysia Mezzanine Capital Unit

11 years of Corporate Banking and Private Equity experience
Strong understanding of local businesses in Malaysia
His role involved managing Malaysian GLC accounts with a focus on the Oil & Gas sector.
He was a Maybank Group Scholar and he holds a BSc from University Putra Malaysia.

Special Guest: Equity Financing Expert

Will you be able to conquer the market and grow your business even at this critical period？

It’s all in your hands whether you decide to join this seminar of the year!

We will unveil the secrets of how you can build a marvellous equity planning, and tremendously increase your company value!

Get guidance from our most professional and practical coaches, to build an impeccable enterprise kingdom!

Learn everything you must know about equity planning, valuation, inheritance and listing altogether in this seminar, create unlimited possibilities for your enterprise!

Date：23 & 24 April 2021 (Fri & Sat)

(2-Day Course）

Time：11.30am to 6pm

Platform：ZOOM

Language: Mandarin

Original Price: RM 888

Pay Online Now ：RM 438

Pay Later：RM 498

Payment Details:

Bank Details for Payment:

YYC GST Consultants Sdn Bhd

Registration No. 201301043188 (1073010-M)

CIMB 8603-8631-36

**To protect exclusive intellectual property rights, strictly NO participation from the same industry as YYC, YYC reserves the right to reject any such participation.

Please note that the purchase of our courses is non-refundable. If in any case you are unable to attend, you must notify YYC in writing via email 3 working days prior to the course date, and you will be given the opportunity to transfer to another course. Failure to attend without meeting afore-stated notification deadline is considered a cancellation and NO refund will be issued.

You understand and agree that YYC reserves the right to add, change, modify or remove any of the terms and conditions, with or without prior notice to you, at any time and for any reason in the Company’s sole discretion.