How BetterPoints used Mount Business Services Advisory to build an exit strategy.
OVERVIEW
BetterPoints is a technology start up in behavioural change and reward to the transport, health and climate market. The BetterPoints app motivates thousands of users to move sustainably, improve health and reduce CO2 emissions.
Betterpoints engaged Andy Eaton as Finance Director in 2020, and after two successful years of growth, the business considered a second stage equity event. Using Andy Eaton's corporate deal-making experience and understanding of value drivers they were able to build an attractive offer to present to investors.
Our Andy’s deal making experience gained in large branded organisations meant we could see the value and barriers to entry from a potential buyers view. This mitigated the perceived risks and focused on the benefits - key to a frictionless investment.
"After two years of growth and expansion, we needed to plan for an equity event to provide second-stage investment and business expansion.
Andy helped us identify potential investors who could bring more than cash, with relevant skills and adjacent products and customers.
Andy also helped us restructure debt from the balance sheet to remove barriers to success. Andy's knowledge of deal structure, the consequences of puts and takes, kept us agile and responsive to the buyers' needs."
Richard Kirk BetterPoints Ltd
APPROACH
Understand the Business: Key to any investment is being able to present the real value behind the numbers. Businesses are appealing for many reasons, not just cash.
Remove barriers: The majority of deals fail in due diligence because there is an apparently insurmountable issue such as a constraining contract; a loan; a legal suit; a trademark fail. Finding and removing these barriers is key to success.
Emphasise the positives: One man's meat is another's poison. By understanding the potential buyer and their needs, we can show above market benefits to a buyer. Using our acquisition checklist, we can find the hidden benefits.
Transparency adds value: We create a frictionless investment, possible where the business structures and support systems are clear, documented and open to scrutiny.
RESULTS
CONCLUSION
Where manpower and skills are constrained, it is difficult to run the business alongside seeking investment. This would take your focus off the customer because of investor relations workload.
By engaging MBS, BetterPoints has access to the skills of a seasoned Finance Director who understands the business and can lead the investment process. This allows the operational team to focus on what they do best - growing the business.
We restructured BetterPoints' balance sheet, renegotiated their long-term funding partnerships, secured new term loans, and are now in the second stage fund round.