Private Equity / Venture Capital Support
3 STEPS FOR INVESTOR PEACE OF MIND
Step 1
We provide a third-party, detailed audit that digs deep into the numbers to give a realistic assessment of the competitive landscape, the brand’s true unique selling proposition (USP), an unbiased SWOT Analysis, and FTC or FDA legal compliance to claim substantiation as well as product production cost and procurement/operational logistics .
Step 2
We then assess the partner’s current (or projected if in concept stage) brand positioning, creative development/media mix, media spend and timing, cost per lead, and cost per sale as well as the projected marketing efficiency ratio (MER) and overall return on investment.
Step 3
We then take all of the above into account and deliver an unbiased, granular and very realistic business plan that includes market research, product development, branding, marketing/media positioning and spend, as well as manufacturing, procurement, sales and operational logistics.
This includes clearly communicating like products and potential consumer or legal challenges, realistic digital and video production costs, and the typically biggest issue - media spend and a realistic, impression-to-lead-to-sale waterfall flow through.
This ensures a more realistic cost per sale projection and the projected return on investment that this delivers over a 5 year time frame.
To Invest or Not To Invest ?
The Typical Process
Investing in a start-up or early stage product / service company is all about the return on investment, whether that be a short or long term exit sale, IPO, or an on-going profitable revenue stream.
The potential acquisition firm supplies either current or anticipated spend and return on investment, and extrapolates that into a multi-year increase in return with a decrease in spend due to momentum and economies of scale.
The investor performs a due diligence report to look deeper into the facts, but does so typically without a thorough marketing and media expertise or an FTC / FDA claim substantiation background.
An ROI amount and timing is established, projected earnings locked down, and a multiple valuation determined based on a number of factors.
And hence, the investment/return scenario is many times then cast in stone and the deal is made.
The Problem With The Typical Process: Its Sometimes Based On Unachievable Metrics
Just because it’s in a spreadsheet, it doesn’t make it true!
It may be a great idea. But if the positioning, efficacy/deliverable, creative messaging, product cost, legal compliance, and most importantly, the media spend and return projections are not accurate, then a good investment could turn into a very time consuming, frustrating and expensive endeavor that does not deliver expected results.
The Solution: Proactive, Realistic & Comprehensive Fact-Based Metrics
From Concept To Sales - A third party B2C marketing specialty firm that provides a granular assessment and detailed media metric -backed business plan addressing everything from product concept to direct to consumer sales.
We turn the 'unforeseen' or 'over amplified' into 'foreseen' and 'realistic' so you can better assess the investment viability, giving you peace of mind that saves you money in investment valuation – all at a very reasonable cost on a per-project basis.
