Profitable exits start before the deal is struck. The biggest profits go to investors who best identify and exploit hidden value, and also expose and avoid hidden traps. This takes more than due diligence, it takes Deal Intelligence℠. Have you found all the important factors across functional areas of the company affecting current value, outlook, pathways for improvement and risks?
Modern companies are much more than a collection of departments; they are intertwined systems across a number of vectors. Conventional diligence emphasizes checking off boxes on basic attributes of the company, but fundamentally misses the main point — if you are just doing diligence, you are doing less than half the job. For most deals, whether you get killed or make a killing will turn on factors beyond the basics. You need advisors who have built and run hundred million dollar businesses who know how to find where the bodies are buried, and who know how to create value.
My team of former executives from global brands such as Amazon, Microsoft and Apple has the real-world, hard-won experience to navigate the high-stakes, high-complexity Deal Intelligence℠ process. My team and I have:
- Turned a 6x EBITDA company into 11x EBITDA company in 20 months in the face of declining revenues
- *e-launched Target.com on Amazon’s platform, increasing detail page conversion by 3 points
- Envisioned and scaled the world’s #2 search engine through story-driven development and marketing
- Re-built the online store for top global brand Apple — their most profitable channel
- Designed, incubated and ran businesses ranging from $10M to $250M
Deal Intelligence℠ starts with a deep understanding your unique investment thesis and deal model and factors. The smartest investments will play to your team’s strengths. We assess companies on proprietary multi-dimensional maturity models based on principles and practices refined in the crucibles of industry titans such as Apple, Microsoft and Amazon. Our process allows us to provide detailed guidance on hidden exploitable value and potential pitfalls, including practical pathways to speeding value creation and risk reduction.
Avoiding Hidden Traps
There’s nothing worse than finding out after closing a deal that execution gaps prevent achieving modeled financial results, or expected synergies are not achievable. Many pitfalls await investors who don’t have a solid factual basis to confirm viability of their thesis. Deal Intelligence℠ gives you visibility into many make-or-break factors, including:
- how technology and processes related to privacy and security mitigate risk without killing the customer experience
- whether old-school SDLC that will mean your competitors will lap you in feature and functionality before you finish the deal
- systems that could be replaced, should be replaced, and must be replaced if you have any hope of realizing the synergies you thought you were getting
- how to ensure infrastructure is set up for success to scale the business per your Excel model
- details of end-to-end system interoperability to make sure what you think the business is doing is actually what the business is doing
- … and much more
Exploiting Hidden Value
The same assets deployed differently can make a big difference in value. New value can come from many places, such as a more lucrative business model, a better market segment, a stronger message, or a narrower focus. If it were obvious, your target company would not be available, or would price differently. Building on our team’s many years of value creation at marquee companies, Deal Intelligence℠ leverages powerful principles and practices to identify sources of hidden value, including:
- story-driven strategy, product envisioning, marketing and sales
- structuring strategy, product and engineering leadership teams
- building and running customer-focused product development processes
- remaking the customer journey across all touch-points, from awareness to long-term loyalty
- identifying hidden synergies utilizing Trefoils extensive partner network
- harvesting data stored across the company to give you insights into performance (or lack thereof) the company could be achieving
Deal Intelligence℠ helps you increase the value of your asset quickly. We identify creative ways to accrete value without major additional capital.
Strategy is Great. Execution is Greater
Even the best investments will face substantial challenges in execution in today’s dynamic, highly competitive business environment. The ability to execute quickly and surely; the agility to adapt to changing markets; and efficient use of resources can make or break the value progression of a portfolio company. Achieving breakthrough results starts by strengthening leadership teams. My Executive Advisory and Executive Coaching services are designed to develop new strengths in your team while helping to navigate high-stakes and sometimes conflicting priorities by pressure-testing and up-leveling processes, teams and technology for growth.
Your Value Partner
My private network of former executives and others from major brands with a variety of specialties are well placed to solve challenges from structure and strategy through to execution — especially when the stakes are highest.
Contact me to schedule an introductory conversation to discuss your deal process.