VC and PE Investee Advisory

Overview

Working with investee’s who have taken equity in businesses that have reached the first revenue milestones has taught us that we often find the same issues holding them back from their next stage of growth. The goals of the investor and of the management teams are not perfectly aligned. We find company management teams doing what used to work rather than working to a defined future. We find executives who have lost a little of the enthusiasm they had when they started. Initial confidence has turned to well-informed doubt but is not yet evidence-based decision-making. Team structures and skill sets that launched the company so well aren’t quite what is needed for the next stage of rapid equity financed growth. The information, accounts, and insight aren’t enabling the investor to see what is happening daily, nor does it help the leadership team to take informed and timely decisions. As the scope of the business has expanded, gaps have opened in the skill sets across the team. Growth rates and planning tend to rely upon internal knowledge and are not based on tightly researched external market drivers and best practice. We have taken our own businesses through those growth stages and on up to $100 million of annual revenue. We excel in helping investors and the companies they invest in take that journey successfully.

We have worked with several VC and PE groups to deliver rapid turnaround in financial results, Information Systems, and business governance that have released exceptional value for their investors.

Solution

A set of tools that cover the whole life-cycle from identifying initial opportunities to post exit analysis. We can quickly and effectively help investors to:

  1. swiftly complete commercial and financial due diligence on targets
  2. align the investee companies to the investor objectives
  3. support the company management in achieving those objectives
  4. enable absolute clarity of visions, values, methods, obstacles, and metrics
  5. enhance professionalism and governance in meetings, reporting, and board conduct
  6. reduce risks where possible and manage those where they should not be reduced
  7. obtain working capital, grants, and debt finance
  8. enhance internal systems infrastructure
  9. enhance innovation, especially of new and profitable businesses and services
  10. enhance exit valuations through financial management, operational improvements, and provision of highly persuasive information memoranda and due diligence bundles.

We can draw on the following areas of expertise within the group under a single expert who leads the work with the founder group

  1. flexible due diligence resource from desktop to full depth forensic investigation
  2. Provision of interim resources from a virtual network of high-quality providers
  3. Provision of highly integrated, automated, and secure accounting services
  4. Business modelling, and financial modelling
  5. Strategic planning, executive mentorship, and advice
  6. Dispute resolution, investigations, and arbitration between parties
  7. Strategic business development & strategic corporate partnerships
  8. C-suite networking for the purposes of business development and data gathering
  9. Fundraising support
  10. Identifying “soft money”, government grants, tax breaks, and corporate venturing

Benefits

  1. investors can approach head of terms with considerably better-quality information and insight than is normally available
  2. tighter tracking of investment company performance through accurate, comparable, timely, traceable business information and financial reporting
  3. reduced investment risk through better quality corporate governance, executive behaviour, and formal risk management approaches
  4. enhanced exit valuations through better quality information, more rapid growth rates, and better efficiency