Find & Assemble a DealTeam
description
Transcript of Find & Assemble a DealTeam
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Course Objective
To provide the framework and insights for Entrepreneurs to establish and utilize a DealTeam to efficiently pursue and execute a corporate finance transaction.
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Key Learning Outcomes
● Understand the importance of the DealTeam in a financial transaction
● Define the right DealTeam members● Delegating tasks to DealTeam members● How to hold a DealTeam accountable● Quantify support mechanisms of a
DealTeam
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A DealTeam is
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DealTeam
● 3 Members● Key Strengths: Legal, Finance, Technical● Internal > Board Members > External Advisors
"DealTeam" is a term coined by INVESTyR to highlight a functioning working group dedicated to the success of the company.
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Why a DealTeam?
● Leverage Strengths● Spread the Workload● Broader Points of Connection● Accountability Mechanism● Sounding Board / Stop Gate● Fast Fail
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Who Needs a DealTeam
Every entity that is fundraising, making an acquisition or sale of a business.
"We set a goal. We worked hard to prepare for it and we realized our dreams." - Kirk Brand Coburn, CEO and managing director of TEN Energy Labs
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How to Find Members
1. Identify key skills the team requires2. Look Internally first3. Existing trusted relationships4. Referrals: people with the skills that are
highly regarded by other entrepreneurs5. LinkedIn / Social Networks - "in my shoes"
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Compensating Members
● Internal members should not require any additional compensation
● External members should be compensated like a business consultant / part-time employee.
● Equity participation is the most logical for all parties
DO NOT give rewards-based on an investment amount. This is a commission and can cause securities regulation issues.
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A DealTeam...
● Meets Weekly● Establishes and Assigns Tasks● Is a Highly Functioning Working Group
○ Superior Communications○ Transparent with everything○ Respects viewpoints○ Makes decisions quickly
● Is Accountable to Itself ● Is Accountable to Board of Directors● Has Success Measured by being
accountable to the process
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The Weekly Meeting "Level 10"
Seque business and personal bestScorecard each member reports progressRoadMap Review review pipeline, follow-upsReview To-Dos. Add new To-DosIssues ListRate the Meeting: 1 - 10
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Tasks of a DealTeam
● Build and Maintain Key Materials○ Pitch Deck○ Financial Model○ Draft term sheet and deal documents○ Due diligence materials / industry insights
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Tasks of a DealTeam
Establish Online Tools○ SaaS-based CRM (NO EXCUSE) ○ Fundraising Tools: Gust, Angel.co, CapRally etc.○ Crowdfunding: Kickstarter, IGG, RocketHub etc.○ Dataroom: vRooms, Box.net, DropBox etc.○ Corporate Presence: LinkedIn, Twitter○ Personal Presence, Updated & Current Profiles○ Feedback Forums: Quora, NYT, Amazon, Disqus
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Tasks of a DealTeam
● Establish Corporate Reputation● Establish Personal Reputation● Create and post thought leadership pieces● Create Investor Avatar● Create Influencer Avatar● Research and Identify the 100 - 200 Avatars
○ Influencers tagged in CRM○ Investors tagged in CRM
● Explore Degrees of Connections● Open Lines of Communication● 3Ps. Patience, Persistence, Process
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Tasks of a DealTeam
Enter all contacts into a CRM○ Every member is responsible to log and track
conversations
CRM is the primary accountability tool
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Life of a DealTeam
Strong growth companies always have a DealTeam continuing their work.
"The best time to raise money is when you don't need it"
The DealTeam can transition from fundraising, to acquisitions / market intelligence to sale of the company.
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What Strengths / Skills Do You Want
List:
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DealTeam Member Disqualifiers
List:
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Build your List
● Create a list of 20 people to be considered for your DealTeam
● Next, write 2-3 things next to each person of what they would do to fulfill this role
● Narrow down the list to 5. Contact each one and shoot for total of 3 to commit and accept responsibility.
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Action Plan
● Inventory of Capabilities of Current Team● Identify Gaps● Establish Compensation● Document Process and Define Roles● Recruit ● Schedule the First Meeting● Identify Tasks● Assign Tasks● Schedule Weekly Meeting ● Go!