Course Objective

To provide the framework and insights for Entrepreneurs to establish and utilize a DealTeam to efficiently pursue and execute a corporate finance transaction.

Key Learning Outcomes

● Understand the importance of the DealTeam in a financial transaction

● Define the right DealTeam members● Delegating tasks to DealTeam members● How to hold a DealTeam accountable● Quantify support mechanisms of a

DealTeam

A DealTeam is

DealTeam

● 3 Members● Key Strengths: Legal, Finance, Technical● Internal > Board Members > External Advisors

"DealTeam" is a term coined by INVESTyR to highlight a functioning working group dedicated to the success of the company.

Why a DealTeam?

● Leverage Strengths● Spread the Workload● Broader Points of Connection● Accountability Mechanism● Sounding Board / Stop Gate● Fast Fail

Who Needs a DealTeam

Every entity that is fundraising, making an acquisition or sale of a business.

"We set a goal. We worked hard to prepare for it and we realized our dreams." - Kirk Brand Coburn, CEO and managing director of TEN Energy Labs

How to Find Members

1. Identify key skills the team requires2. Look Internally first3. Existing trusted relationships4. Referrals: people with the skills that are

highly regarded by other entrepreneurs5. LinkedIn / Social Networks - "in my shoes"

Compensating Members

● Internal members should not require any additional compensation

● External members should be compensated like a business consultant / part-time employee.

● Equity participation is the most logical for all parties

DO NOT give rewards-based on an investment amount. This is a commission and can cause securities regulation issues.

A DealTeam...

● Meets Weekly● Establishes and Assigns Tasks● Is a Highly Functioning Working Group

○ Superior Communications○ Transparent with everything○ Respects viewpoints○ Makes decisions quickly

● Is Accountable to Itself ● Is Accountable to Board of Directors● Has Success Measured by being

accountable to the process

The Weekly Meeting "Level 10"

Seque business and personal bestScorecard each member reports progressRoadMap Review review pipeline, follow-upsReview To-Dos. Add new To-DosIssues ListRate the Meeting: 1 - 10

Tasks of a DealTeam

● Build and Maintain Key Materials○ Pitch Deck○ Financial Model○ Draft term sheet and deal documents○ Due diligence materials / industry insights

Tasks of a DealTeam

Establish Online Tools○ SaaS-based CRM (NO EXCUSE) ○ Fundraising Tools: Gust, Angel.co, CapRally etc.○ Crowdfunding: Kickstarter, IGG, RocketHub etc.○ Dataroom: vRooms, Box.net, DropBox etc.○ Corporate Presence: LinkedIn, Twitter○ Personal Presence, Updated & Current Profiles○ Feedback Forums: Quora, NYT, Amazon, Disqus

Tasks of a DealTeam

● Establish Corporate Reputation● Establish Personal Reputation● Create and post thought leadership pieces● Create Investor Avatar● Create Influencer Avatar● Research and Identify the 100 - 200 Avatars

○ Influencers tagged in CRM○ Investors tagged in CRM

● Explore Degrees of Connections● Open Lines of Communication● 3Ps. Patience, Persistence, Process

Tasks of a DealTeam

Enter all contacts into a CRM○ Every member is responsible to log and track

conversations

CRM is the primary accountability tool

Life of a DealTeam

Strong growth companies always have a DealTeam continuing their work.

"The best time to raise money is when you don't need it"

The DealTeam can transition from fundraising, to acquisitions / market intelligence to sale of the company.

What Strengths / Skills Do You Want

List:

DealTeam Member Disqualifiers

List:

Build your List

● Create a list of 20 people to be considered for your DealTeam

● Next, write 2-3 things next to each person of what they would do to fulfill this role

● Narrow down the list to 5. Contact each one and shoot for total of 3 to commit and accept responsibility.

Action Plan

● Inventory of Capabilities of Current Team● Identify Gaps● Establish Compensation● Document Process and Define Roles● Recruit ● Schedule the First Meeting● Identify Tasks● Assign Tasks● Schedule Weekly Meeting ● Go!