Mergers and Acquisitions
Anyone involved in mergers and acquisitions knows that every deal is different and the path to success is always unique. Whether an organization is beginning to consider a merger or an acquisition, or an organization has completed the transaction, the workload is immense from beginning through post-M&A.
At Cultivate Enterprises, we leave the deep financial components of the M&A transactions to the CPA and finance professionals, as they are better equipped to assist with mitigating those risks. What we do however, cover many of the Pre- and Post- M&A components which we are experts in. Some of those components which we have assisted clients with on the Pre- side surround due diligence on business processes, systems, organizational structures, culture, business planning, go-to-market channels, and the development of the Post- integration strategy (“PMI”). Our professionals understand the ins and outs of how to successfully plan for a merger or acquisition surrounding day to day processes, systems, culture, and activities, which is still an integral part of the entire process.
When it comes to Post- M&A integrations (“PMI”), one of the biggest misconceptions is that everything will continue status quo and people will be able to absorb the changes easily into their day-to-day responsibilities. The second biggest misconception is that the PMI phase starts post close, when it should start prior to closure. More often than not, M&A transactions destroy value, as more than 50% of these transactions fail or underperform. The transaction may have successfully closed, but the value left unrealized on the table can cause a ripple effect of problems and challenges that can become so bad that they can threaten the existence of the now larger company entirely.
At Cultivate Enterprises, we believe that PMI planning and activities must be an integral part of any M&A transaction, both prior to the close, as well as immediately following the close. Business processes need to be aligned not only across the two organizations but now across the integrated organizational functional units. Technology systems are expensive, and they too must be handled in conjunction with the new business processes, not to mention determinations must be made as to integrating them, sunsetting one or more, training for people, etc. Cultures need to be aligned as well, as the two must now feel as though they are one and are united together, charging forward to meet the objectives of the new organization. Cultivate Enterprises has experience in all of these areas and more, and our professionals have been actively involved in numerous M&A transactions over the course of their careers.
Venture Capital Advisory
Growth can be an exciting thing for a business owner and early employees in a company. Conversely, needing more capital to weather seasonal demands, further the science or technology, run appropriate test plots, or tweaking formulations seeking the optimum receipt can be a confusing and stressful process. The thought of giving up ownership or taking additional debt can seem daunting at best, and if you do not have a great deal of experience in this realm, it could end up becoming a punishing experience. With capital raises often involving more than one person or organization, as well as taking on many forms such as debt vs. equity, banks, traditional lenders, angel investors, venture capital, and more, it is not something to be taking lightly.
At Cultivate Enterprises, we have seasoned professional who have been helping clients raise capital for their business for over 30 years. We pride ourselves on getting to know the unique needs of our clients so we can recommend the best possible approach, pitch deck(s), structure, pricing, and investors. With the odds of being funded by venture capital being around 0.7%, startup companies need every advantage that they can get when seeking funding from VC’s. There are other sources of funding of course, so venture capital might not be the appropriate route for your organization, but regardless of which route or routes you choose to take, being prepared and having the answers to frequently asked questions ahead of time can be the difference of getting a second meeting, a third, and of course the check. This is where Cultivate can help.
We have found three (3) common qualities in what VC’s and angel investors often look for when determining where they will put their money – (1) Large Market, (2) Differentiating Technology/Science, (3) Passionate People It does not stop there however, as VC’s and angel investors are also looking at the Founder(s), and these organizations and people often say that the decision to invest or not comes down to the people, as markets and technology/science are extremely challenging to get right without pivots. So what are the characteristics in Founders that they are looking for? Although there are many, the most common three (3) components that VC’s are looking for in Founders are – (1) Dedication/Grit, (2) Agile Visionary, (3) Seasoned Executive.
Although we cannot create or teach either set of qualities above, we can help your organization with the preparations for your capital raise, pitch deck, due diligence, verbal presentation, Q and As, metrics, and more. Our professionals have worked with many startups to prepare them for their capital raise, as well as having worked with quite a few venture firms in the agriculture and agtech industries. We know term sheets, the funding process, and many of the common components that VC’s are looking for in their top choices, although each one is slightly different.