art of the deal 101: notes from the trenches - entrepreneurship 101

Art of the Deal 101: Notes from the Trenches Bill Mohri President, M Consul2ng Advisor, MaRS

Feb 24, 2016

Agenda

•  Introduc2on

•  Why Partnerships

•  Deal Do’s and Don’ts

•  Conclusion

M Consul:ng: Our Offering

INSIGHT ACTION

An enterprising approach to ac2va2on strategies that are pragma2c, and results oriented

Relentless probing and dis2lla2on of facts into insights and ac2onable strategies

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Helping founders and start ups grow their businesses and aEract investor interest through successful marke:ng strategies, partnership

strategy and execu:on, and revenue forecast & alignment.

M Consul:ng: Our Select Clients

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Why Partnerships

•  They can be used as a growth ‘hack’ to increase speed to growth. They are typically used to gain access to resources, brands, markets, tech or lower costs/scale

•  Increasingly MNEs are partnering with smaller en22es to explore new business lines or to acquire R&D, and should be explored cau2ously by the start up due to the contradictory strategic intent – MNEs view these as short-‐term solu2ons and start ups should view these as longer-‐term solu2ons.

•  Partnerships can be in the form of alliances, JVs, and acquisi2ons

Why Partnerships

For all the excitement, partnerships aren’t a guaranteed path to success.

April 21, 2011

July 8, 2015

Deal Due Diligence

You can beat the odds for a successful partnership with the following:

Structure

•  Separate the process into func2onal por2ons so the en2re team has input

•  Ensure appropriate leadership, incen2ves, tracking and 2me for partner integra2on

•  Place your most senior staff on these, with the project leader being the strongest in understanding your culture and internal processes

Metrics


•  Create robust, integra2ve tracking metrics to measure the predic2ve health of the partnership

•  Agree that failure to partner is a win

•  Force strategically similar ideas and calculate the rela2onal difference between the op2ons

•  Partner against your core business •  Benefits should be exclusive of: improved customer sa2sfac2on; new

customer adop2on, or higher revenues – within a 12-‐mnth period

Strategy

Deal Prep and Execu:on: Expecta:on SePng SAMPLE

Deal Due Diligence

And by se`ng expecta2ons in phasing and 2ming the work:

C

Assign

Strategic Need

Strategically Similar Op2ons

Sector/Mkt Selec2on

Ideal Partner

Profile

Outreach

NDA

Ini2al Nego2a2on

Governance and Performance

Metrics

Detailed Nego2a2on

Terms

DA

Execute

Support & Monitor

Quarterly Check

up

Effort

Time DA means Defini2ve Agreement.

Strategic Legal Opera:onal

Deal Idea: Partner Ecosystems

•  Strong partnerships are typically accre2ve and thereby complementary •  Developing a partnership strategy can allow you to develop a partnership ecosystem •  The strongest ecosystems are self sustaining and self regula2ng (with the right

direc2on) so you can create a plurality of partnerships

Core

P1

P2

P3

P4 Core P1

P2

P3

P4

P1

P2

P4

Tradi:onal Partner Ecosystem Plurality Partner Ecosystem

Deal Due Diligence: Partner Plurality Systems

You can beat the odds for a successful partnership with the following:

P-‐Structure

•  Earmark a lead partner (generally the partner with the broadest offering – to which speciality partners adhere their offering)

•  Delegate a BU lead or func2onal lead to manage the Plurality ecosystem lead (so you can develop the next Partner Plurality System)

P-‐Metrics


•  Benchmarking and compensa2on focuses on 2mely, quality delivery and service support (as required)

•  Create robust, integra2ve tracking metrics to measure the predic2ve health of the partnership

•  Where capabili2es to support the core business are required (but not available), where speed and complexity is required

•  Build cluster of providers with limited redundancy •  Choice-‐fully segregate capabili2es across suppliers

P-‐Strategy

Thank You

Bill Mohri President, M Consul2ng Advisor, MaRS Venture Services [email protected] [email protected] First Canadian Place 100 King Street West Suite 5700, Toronto (o) 416-‐915-‐3191 (c) 416-‐428-‐1512

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Qualifica:ons: –  Tech execu2ve with interna2onal experience in Strategy, Planning and Marke2ng –  Accredited Investor –  BA, MBA from University of Toronto

Previous Experience: –  Prior to founding M Consul2ng, Bill was the Canadian Head of Strategy and Partnerships at

Microsom Canada’s Adver2sing and Online division and he was the Head of MSN Interna2onal’s online sports content acquisi2on and contrac2ng

–  Bill is an Advisor with MaRS’ Internet, Communica2ons, and Technology (ICT) and Health Device, Venture Services where he helps small and mid-‐sized ventures with sales and marke2ng, planning and strategic partnerships.

–  Bill’s strategic, collabora2ve approach was honed from his training and experiences at Deloioe in the Strategy & Opera2ons prac2ce. Bill’s work focused on planning, marke2ng strategy, and CRM.

–  Prior to that, Bill spent 2me at Coca Cola and Kram in increasingly senior brand strategy and opera2onal roles. Bill was responsible for the launch of Fruitopia and he won an interna2onal Superior Achievement Award while at Kram.

Bill Mohri President, M Consul:ng Advisor, MaRS Health & ICT Venture Services

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