Giant and Midget: How Start Up Can Partner with Big Companies by Tal Chen (Deloitte)

© 2015 Brightman Almagor Zohar & Co.

Giant and MidgetHow Startups Partner with Big CompaniesTal ChenPartner, Leader of the Technology, Media & Telecommunications Industry & Head of Corporate Finance


>50 new start-ups meeting weekly

200start-up clients

Large database of start-ups looking for

investments & business partners

of experience developing unique methodologies to nurture innovation, fuel entrepreneurship and assist global power-houses with matchmaking services

20+

years

An international

team dedicated to start-ups

With a focused approach to the Start Up Ecosystem


Via our 3600 program accompanying start ups,… from the seed stage to the IPO / Exit,

Audit

Business Development

Deloitte’s Network

Professional lectures

Global Alliance

TAX

Deloitte Services

Our fees are subsidized to meet seeded startup capabilities

Audit of the annual statutory financial statements. Audit of statutory income tax return in Israel

Providing ongoing accounting and tax advice Professional lectures on various subjects, such as: IPO redlines, M&As, Raising funds from governmental and public entities, International taxation, transfer pricing and more

Meeting with our Global Alliance team in order to explore ways to leverage the Deloitte platform for international business opportunities

Our client service teams will include a business development professional that will make sure that you will maximize the business value that Deloitte can offer you and create powerful business solutions for your organizations


Creating Long Term Value

Identify the opportunities

Assess the opportunity

Evaluate the paths

Decide and Execute


Choosing the Right Business Partner


• Research

• Sometimes Second Tier is Better

• Strive for a fast Go / No-Go

How to Choose the Right Business Partner


Inside the Big Company Mind


Inside a Big Company Mind

8

How is the company organized?

Structure CultureHow are decisions made?

ProcessWhat are the steps to securing a deal?


Inside a Big Company MindStructure

9

Where is the opportunity?

Who evaluates partnerships?

How flat or fat?

• One business team versus multiple groups

• Beneficial owners / stakeholders

One BD team versus fragmented responsibilities

# Layers of management


Inside a Big Company MindCulture

10

How do they view innovation

and risks?

What are the office politics?

•Sponsors or advocates

•Motivation


Inside a Big Company MindProcess

11

Who else needs to approve?

Is the timing right?• Budget • Priorities• Resources

Can they execute?

• Constraints• Business Cycle


How Do Big Companies View Startups?

12

Motivations• Value Equation • Path to M&A • Branding

De-motivations• Safety in Big Names• Opportunity Size

Sovinski, Yael (IL - Tel-Aviv), 01/29/2015

עדיף שהכותרת תהיה מעל הטקסט, כמו בדוגמא התחתונה


Proof of Concept


29.9%

•Clear and achievable goals

•Related to the goals of the organization

•Resource

•Schedules

•Commitment

Proof of Concept


Signs of Engagements


29.9%

Signs of Engagements

•Written and signed (binding or non binding)

•NDA, LOI, MOU, definitive agreement

•Increasing the advocates circle

•Seniority / decision making counter party

•Urgency / Frequency of the correspondence


The Next Step


The Next Step

• Deal structure

• Free (mium)

• Licensing

• NRE – Non recurring expense

• Equity


Just say YES


Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

© 2015 Brightman Almagor Zohar & Co. Member of Deloitte Touche Tohmatsu Limited.

Giant and Midget: How Start Up Can Partner with Big Companies by Tal Chen (Deloitte)

Small Business & Entrepreneurship

Transcript of Giant and Midget: How Start Up Can Partner with Big Companies by Tal Chen (Deloitte)