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Expert Advisory Board

Making the Right Investment Decision

The Challenge

A New York-based, private equity firm wanted to better understand the future direction of 3D movies, both technically and commercially, before considering a significant investment in a company that was developing a revolutionary 3D cinematography process with global business potential. The firm needed to hear a cross-section of expert opinion on a range of issues to inform their decision.

The Solution

An Expert Advisory Board was assembled, consisting of 12 thought leaders with different areas of expertise, and brought together for a 2-day meeting. Participants included 2 distinguished academicians with 3D optical engineering backgrounds; 1 leading 3D software developer; 2 US, 1 European, and 1 Pacific Rim marketing executives within the movie industry; an attorney specializing in 3D patents; 2 current Hollywood studio executives; 2 national theater-chain executives.

After 3 brief PowerPoint presentations to establish a foundation for discussion, during moderated general sessions and in smaller breakout groups, participants discussed 7 key questions:

1. Are 3D movies a fad or the future?
2. How do moviegoers feel about the 3D experience - is there an unmet satisfaction need?
3. What is the current state of 3D movie technology?
4. What competing 3D technologies are on the horizon?
5. What would be the market impact if there were 3D movies without the need for glasses?
6. How much of a ticket-premium is 3D worth to the movie-going public?
7. How committed are the major studios and theater owners to producing 3D movies over the next 15 years?

The Outcome

From the company’s interaction with the Expert Advisory Board during the meeting, the meeting discussion itself, and more particularly, the prepared Report and Analysis of the meeting, the private equity firm's investment committee was able to make an informed decision.