FW: Deal models

would love to discuss --- per my voicemail

-----Original Message-----
From: Eichmann, Marc
Sent: Friday, March 16, 2001 3:49 PM
To: Apollo, Beth
Cc: Jafry, Rahil; Scribner, James; Beck, Sally; Philipson, Fred; Segura,
Stephanie
Subject: RE: Deal models

Beth,

The information we need to complete the analysis is included in the document
we outlined this morning. Fred and Rahil are working on getting volumes for
your group to estimate the marginal cost per transaction at different volume
levels. We will use that information to estimate the cost side going forward.
On the revenue side I believe that it can be misleading to use a cost plus
approach and that we will be better off estimating the price counterparties
are willing to pay for the service based on market comparables from the
benchmarking studies Sally contracted a while ago. We will also take into
account for pricing other variables as the contingent liability risks that
they are avoiding by outsourcing their back office function and the issue of
information confidentiality.

Marc Eichmann

-----Original Message-----
From: Apollo, Beth
Sent: Friday, March 16, 2001 2:22 PM
To: Eichmann, Marc
Cc: Jafry, Rahil; Scribner, James; Beck, Sally
Subject: RE: Deal models

Thanks for the note -- that helps to put it into perspective.
Unfortunately, since Sally is out this week, I had not seen this note.

James has all of the marginal cost information, which can be used to work
from - I still believe that the approach we discussed in our meeting before
lunch today is the right one. We need to create some customer profiles which
include the number of transactions at each level and for each of the
potential services to calculate some potential cost base scenarios --- from
which we can gross up to a potential revenue number.

Rahil -- I would like to discuss the next steps, and who we put on point
(specifically) for each task.

Beth

-----Original Message-----
From: Eichmann, Marc
Sent: Friday, March 16, 2001 12:19 PM
To: Apollo, Beth
Cc: Jafry, Rahil; Scribner, James
Subject: FW: Deal models

Here is the message I received from Greg, which I just told you and Rahil
about today.

I would really like to use Rahil's expertise at EOL to try to size the
potential market going forward. On the other side, I would appreciate getting
feedback about the marginal per transaction cost at different volume levels
as presented in the document we discussed this morning. I will be available
to help in any way needed.

Thanks in advance for your help

Marc