Spin-offs & Strategic Partnerships..

For better chances in winner-takes-all markets.

Spin-offs take a promising division and provide it with the necessary conditions for its best chance of success, all at the same time  relieving the organisation from its divergence and crystallising its focus.  Each spin-off is unique and requires a tailored approach to form the best structure that suits its potential. 

Spin-offs also allow off-loading some of the risks of an initiative and on-boarding other parties as strategic partners, increasing the chances of success. The following are some of the key advantages of having strategic partners in spin-offs:

■ Challenges the idea thru a diligent vetting in the market, taking away the potential bias of the initiating organisation;

■ Reduces the required investment and the overall risk;

■ Enhances the power pool behind the initiative;

■ Might enhance the proposition with complementing product offerings improving its position in the market.

 Partial Exits..

For early exits of periphery investments in delayed or risky markets.

Division exits help bank the value created subsidiary to the core business and works well when the division is no longer considered key to the core business of the organisation. Division exits utilise the investment that is already made and the value created in various forms, among others:

■ Intellectual property created;

■ Product/components developed;

■ Expertise accumulated;

■ PoC and trial implementations;

■ Sales and partnership agreements; 

■ Complementing eco-system; and 

■ Market recognition.

Fund Raising

For the next phase or for more.. 

May that be for earlier stage operations, like product development or product launch, or for market expansion and growth, fund raising comes with the complexity of any strategic deal that requires the comprehensive evaluation of the company.

Yet there is almost always more to a fund raising pathway than just to raise funds. Methods of fund raising, potential investors and strategic partnerships can make impact on the future of an organisation more than simply the raised funds. 

Acquisitions

For faster growth.. 

As a faster alternative to organic growth, acquisitions may be used to speed up the production phase, market entry and expansion and even road-map management. They may strengthen the company’s position by complementing its offerings and enhancing competitiveness while enhancing its value.