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Questions
Q: Interested in Who and How do you approach
potential acquirers/partners?
Q: Would such Partnerships need to be exclusive (if you’re that
potentially valuable to them)?
Q: Does this not confuse the roles with M&A Specialist
focus?
Q: How large should the potential partner/acquirer
company be?
Q: How do you get partners to resell our solution?
Q: What types of partners should seek to partner with?
Q: How do we get our partners to do more?
Q: How long should you partner before
seeking/expecting to be acquired?
2
Welcome
If you have any questions, please interrupt…
Type into the Chat/Question screen
Donagh Kiernan, Founder and CEO
Tenego Partneringwww.tenegopartnering.comhttp://ie.linkedin.com/in/donaghkiernan
Donagh KiernanFounder and CEOTenego Partnering
27 years – Techie background Sales Channel, Direct Sales and ChannelSales Organisation Management.
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Tenego Clients
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Tenego’s Global Network
• To date, executed projects across UK & Ireland, Across Europe, North America, Mexico & Latin America, Middle East, North Africa, India, China, South Asia…
• Growing Global Network of Tenego Offices with on the ground presence and in discussion in
– Ireland (HQ), UK, Germany, Netherlands, Greece
– Middle East, APAC
– Canada, US East Coast, US West Coast …
7
“50% of acquisitions
have prior partnership relationships”
“Tenego’s activity increased the value of our trade sale and also accelerated the process” -Tech CEO,
(whose company was acquired by one of their partners)
Exits - Sellers and Buyers
10
Buyers• “Too often company executives driven
by expanding their empire or blinded by a ‘quick fix’ for entering a new market, end up in an overpriced deal” - Inc.com
• “They completely overlooked our people when they purchased us”
• The prime reason for acquisition failure is poor culture fit.
Sellers• “If you’re building your business to sell,
then focus on building a great business. Don’t focus on selling your business”, - multiple business leaders
• “In up to 50% of trade sales, a prior partnership relationship existed between the companies” - Silicon Valley M&A Experts
• The prime reason for Partnering failure is Poor Partner Fit
Exits: Sellers and Buyers
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Buyers: Wants• Acquire at good value, while
accelerating their growth and/or adding shareholder value
• Minimise risk, in solution and company fit within their business
• enable continued growth with quick and easy integration
Buyers: Challenges• The cold evaluation/due diligence
process can only tell so much• High risks in getting it wrong.
Sellers: Wants• Exit with the optimum valuation, as
early as possible• Maximise cash payment while
minimising earn-out period• Take care of career paths for your
team, and the senior team and maybe founders too
Sellers: Challenges• Multiple risks to achieve growth and
desired valuation target• Risks in getting it wrong, fire-sale,
dying early or zombie.
What is your Exit Strategy?
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• Why will your company be bought?• How will an acquirer value in your business?
– Revenues– Value of Customers in your market region or sector – With your technology and capabilities, THEY can grow faster– …
• How to you get bought, rather than Seeking to Sell– How do you get on the radar of an acquirer?– How do you maximise your valuation?
• Be Careful– Chasing the wrong valuation metric– Chasing a finish line with an exit in mind
– Seeking to sell without being ready may devalue your business.
Consider your Exit Strategy?
• Lead your own Vision, not someone else’s
– Risks in determining why you will be bought– Risks in pre-selecting potential acquirers– Are they on the right path?
• Build a Great Business while building shareholder value
– Grow to last – to forever grow– While always being corporately ready
• Lead the market – Influence the market
– Create your own market (as you define it)– Make them follow you– Be acquired for your leadership in the market.
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Build a Great Business & Shareholder Value
• Execute well – Build your Growth Engine by delivering growth– Build your International marketing, sales and delivery orgs– Build a clear strong sales engine with multiple revenue streams – Continually address the scalability challenges in your business
• Learn to Partner, Learn to Grow - Strengthen Position:
– Partner across the market – Partner with competitors in different markets, sectors and regions– Partner with potential acquirers for revenue purposes, on your plan
• Demonstrate Strength, Independence and Leadership
– Do things and demonstrates your direction, your potential and add shareholder value to your business.
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What types of companies are suitable?Partner Type Selection & Partner Fit
a) Capabilities you have / Capabilities you need to grow
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Product/Solution/ServicesBusiness Engine Market,
Sales & Delivery
Market EcoSystem:
Company TypesPartner Type Evaluation
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Influ
ence
rs
Consumer n/a
Policy Makers / Regulators
Standards / Certification
ISO27001, BSA, ITIL, ITAR, PII, SISA
Codes of Practice Public Sector, Local Authorities
Analysts
Media
Industry Organisations
Targ
et C
usto
mer
s Water
Electricity
Gas
Advi
sors
/Con
sulti
ng
Accountants / Tax Advisors / Business
Consulting T1
Legal*
Accountants/Business
Consulting T2*
BPO Industry Organisations
Debt
Ser
vice
s &
Colle
ctio
n
Specialist Debt Consultants / Credit
Checking *
Debt Recovery*
BPO Accounts Receivable
SI’s
& IT
Ser
vice
s IT Consulting
Systems Integrators* ,
IT Managed Services
IT Services
Softw
are
Solu
tions
Debt Management Software*
Contact Centre Mgmt Systems*
Workflow /Doc Management /Case
Management
Your Market EcosystemWhat Company Types have access to your customers and the capabilities
to help you sell?
AND / OR
Could potential buy your company?
Partner Type Evaluation / Scoring
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Leads
Plan
Create
Qualify
Develop
Prove
Negotiate
Close
Implem
ent
Support
Value A
dded Solutions
Know
ledge & Focus
Existing &
Grow
ing
Custom
er Base
Credibility / Influence w
ith
Decision M
akers
Ease of doing B
usiness
Opportunity for Partner
Time-to-E
ngagement
Partnering E
xperience
# Potential C
o's in Market
Lead Gen
Sales
Delivery
Key C
riteria
Full Process
Business/IT Consultants Regional 2 4 4 4 4 4 2 2 3 1 0 2 2 5 4 3 5 3 5
Business/IT Consultants Regional
43 41 33 29 59 2 3.0 3.9
Sales and Delvery Process Key Characteristics Summary by Capability
Sector Specific Consultants 3 5 5 5 5 5 3 3 4 1 0 6 3 6 4 4 5 4 3
Business/IT Consultants Regional
53 51 40 35 74 3
BPO 3 5 5 5 5 5 5 5 3 2 2 4 3 5 2 2 2 4 3
BPO
43 45 32 25 70 4
System Integrators (VARs) 4 5 5 5 5 5 5 5 5 5 5 5 4 5 5 5 5 5 4
System Integrators (VARs)
57 58 53 38 92 1
Sector Specific Solutions 4 5 5 5 5 5 5 5 2 2 0 5 5 5 4 4 2 4 3 51 52 36 32 75 2
Direct (current) 0 5 5 5 5 5 5 5 4 4 3 2 5 2 3 3 3 5 3 Direct (current)41 46 37 26 72
Our Partner Propositions -
enabling or providing
for the partner…
Evidence of S
trong Value
Proposition (0-6)
Opportunity for Partner
(0-6)
Opportunity for Vendor
(0-6)
The Value the Company Types bring to us
2 4 4 4 4 4 2 2 3 1 0 2 2 5 4 3 5 3 5 43 41 33 29 59Business/IT Consultants
Regional
in supporting the sale of Vendor;to provide services on business
process development, training, documentation and change
management, and licence revenue share2 3.0 3.9
introductions/referrals into deals and local expertise in consulting
services
3Sector Specific
Consultants
in supporting the sale of Vendor;to provide sector specific services on
business process development, training, documentation and change
management, and licence revenue share1 4.0 4.9
introductions/referrals into deals and local expertise in consulting
services
4 BPO
enabling BPO's to provide flexible integration and solutions to their
clients businesses and revenue stream, or credits, in introducing their
clients to the solution4 2.0 4.7
Grow Pivotal licence share on a per seat basis and int
1System Integrators
(VARs)
enabling Implementation service revenues and licence share AND a
plaform and global marketplace for sector specific solutions developed 4 5.0 6.1full lead gen, sales, implementation and support representation for
Vendor and opportunity for new solutions
2 Sector Specific Solutions
providing sector specific CRM based applications adding value to their
existing sector solutions 1 4.0 5.0introductions/referrals into deals and local expertise in consulting
services
Partner ManagementPartner RecruitmentPartner Type Selection
Step 1
DefinePartnering
Requirements
Step 2
EvaluateTarget Markets
Internal Intelligence
• Products/Services
• Proposals
• Customers
• Sales Process
• Sales Collateral
Evaluate Market
• Product Markets
• Specialist Service Markets
• Routes to Target Customers
Step 3
Select Targets&
Define Approach
Define Approach
• Analyse and Score
• Select Initial Targets
• Define Specific Business Case
Step 4
Make Approach&
Determine Fit
Make Approach
• Approach target companies, starting with Top Targets
• Determine Interest and Strategic Fit
• Review Approach
Step 5
Establish & Build Business
Relationship
Partners
• Ensure Marketing & Sales Fit
• Ensure Operational Fit
• Ensure Strong Reference Sites
Outputs
• Partnering Objectives
• Partner Value Proposition
• Sales and Delivery Capabilities Required
Outputs
• Market Eco-System & Trends
• Competitors Review
• Target Partner Types Profiles including search criteria
Outputs
• Scored Lists
• Top Targets
• Specific Business Cases
• Approach Action Plan
Outputs
• Selected Initial Partners
• Agreed Partnering Terms (Tentative)
• Identify Initial Engagements
Outputs
• Working Initial Partnerships
• Repeatable Partnering Model
• Partner Maximising Plan
Week 1 to 4 Week 5 to … On-going
Tenego’s Partnering Process
Partner / Acquirer Approach
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Decision Makers:• Head of Product / Strategy / Business Development• OR Corporate Development (are you sure?)• Depending on size
Approach:• Partner Value Proposition for revenue purposes
– Additional revenue from their existing customers– Help them win new customers– Key additional functionality or product suite module
• Acquisition Proposition– Growth Potential – Capture (own) the value they can create with your product.
Partner Management - Exit Influencing
• Understand:
– Partners' Acquisition policy and activity
– Decision Makers' motivations to acquisitions
• Determine activities in influencing decision makers
– Partner with competing companies:• Creating perception of being everywhere
– Partner/influence all layers of their EcoSystem:• Analysts, Trade Associations, Trade Media, Consultants, Service
Companies, Resellers and Solution Companies.
Next Step Actions
1) Assess your company’s/product’s Growth Potential
2) Assess the Partner Types for Revenue & Acquisition
3) Execute; Recruit Partners, Manage Partners, Drive Revenue– Structure your Partner Recruitment, Partner value Proposition and
Partner Management approach
– Build multi-level relationships across Marketing, Sales, Implementation, Support, Product, Senior Team including Corporate Development
4) Build a Great Business, spread your inter-dependence, Create Value
5) Wait or Trigger Acquisition discussions.
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www.tenegopartnering.com/resource www.tenegopartnering.com/blog
Further content available online
Presentation can be found here:
https://www.slideshare.net/DonaghKiernan/partnering-as-an-exit-strategy
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Additional Webinars
• Other webinars available in our Resource Page:
• How to fix a Broken Sales Channel
• Partner Program Development for Scalable International Growth
• Planning 2017: Decisions and Tools for Growth
• Sales Partner Management for better Partner Engagement
• How to ensure Partner Fit. It's not as simple as it may seem
• Meet Your Revenue Targets with Focused Sales Execution
• Finding Big Markets for Big Data & Data Analytics Solutions
• Business in Europe: Understanding the bigger opportunities
• Growing your Business in the UK
• Germany: Opportunities for Tech Companies
• Market Opportunities in Australia for Tech Companies
• How To Prevent The Mistakes in Sales Channel Development
• And many more…
www.tenegopartnering.com/resource 25
Related Articles
• Available in our Blog:
• Want to sell your company? Then Partner with potential acquirers
• The First 100 Days of Taking Control of Your Sales Channel
• Are you Strategic to your Strategic Partner? - Software Sales Channels Unrequited Love
• 5 In & 5 Out in Reviewing & Improving Your Sales Channels - Part 2 of 2
• 5 In & 5 Out in Reviewing & Improving Your Sales Channels - Part 1 of 2
• What Partner Types do you want in your Partner Program?
• 5 Hard Things in Building an Effective Partner Program
• 5 Points on Breaking Preconceived Notions with Just Enough Analysis
• Your Sales Focus? Quarter-end Targets AND/OR Game Change Next Year?
• One Engine, many speeds: Managing Direct Sales and Partners
• 5 Partner Management Styles - Which one are you?
• Diagnose your Current Sales Channels - Partner Fit Evaluation
And many more…
www.tenegopartnering.com/blog 26
Build & Manage Sales •
Direct and Channels•
Executive Hands-on•
Your Alliances Team•
Software Business Experts
•
Practical•
Results Focussed
CONTACT DETAILS:
Tenego Partnering
Ireland (HQ), UK, Germany, Greece, Benelux,
Australia, Toronto, Dubai…
Web: www.tenegopartnering.com
Email: [email protected]
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