How to win strategic investment?
altex is looking for (strategic) investment (at the right price) and I would like to share some of things I believe, and have found out, will matter to investors who look at us and other companies working in the digital space.
Even though I successfully sold my first internet marketing agency (in the UK) back in 2002, things have changed and the global recession does not help.
Strong historic growth curve
Profitable (preferably highly profitable)
No big debts
Reasonable staff cost to revenue ratio
Commitment to Research and Development (Innovation)
High profile name/brands
Credibility/ strong reputation in marketplace
Wide customer base
Confirmed orders/guaranteed revenue
Best talent locked in (eg with share deals based on targets)
Equal levels of contribution by key players
Poor or negative growth
No exclusive products or high profit lines
Unrealistic or unambitious goals
Poor market positioning
Highly active and successful competitors
Sheep mentality (no thought leadership in marketplace)
Dependence on one type of customer or sector
No client relationships at senior level
Lack of accountability for results
Reliance on one person
Maybe you can think of more? If yes then share them here please and I will update the list from time to time.
PS Altex does pretty well on the above points but there are obviously some areas we could improve (hence the desire for investment to accelerate revenue growth for new products and in new markets)