Using the Full Spectrum of Strategic Partnering to Build and Realize Value

Traditional strategic partnering focuses on a single endpoint. This could be a company acquisition or sale or closing an investment round. While presenting and cultivating a single partnering objective is the most common investment banking practice, it ignores the significant value that might be derived from potential interest in other forms of partnership. In addition to losing out on these valuable partnerships, it also closes the door on building the relationships that eventually lead to the high value deals that investors and management covet.

Stratagem’s process, on the other hand, is based on a more holistic view of strategic partnering. It is designed to stimulate general strategic interest and could result in any number of relationships – from a technology license, to a distribution agreement, to a strategic investment, or ultimately to an acquisition. By definition, the partners we approach on your behalf have the greatest degree of synergy with your company. So why not fully exploit this unique and targeted opportunity by considering unplanned value-building partnership options?

By approaching prospective partners with a synergistic business opportunity and a willingness to explore partnering alternatives we leave the door open to potentially valuable deals that that would otherwise be overlooked. This core benefit is the same regardless of the service we are delivering. However, there are additional key benefits unique to each service:

• In a sell-side engagement, you can avoid the perception that your company is “being shopped” or “on the block.”
• In a fundraising engagement, a business development partnership may reduce short-term cash needs and could result in a higher company valuation.
• In a buy-side engagement, you might uncover a lower cost alternative to acquisition, or mitigate the risks associated with an outright acquisition.

In many discussions, the optimal partnership may be something less encompassing than an M&A transaction. Timing challenges can also prevent two highly synergistic parties from merging, whereas a smaller initial deal can bridge to a subsequent M&A event. We recognize the value, sometimes even superior long-term value, in these strategic partnering alternatives, where it’s unlikely that these opportunities would be uncovered, let alone actively worked, by the vast majority of investment banks.

The custom positioning we do when we approach a partner is the key that makes this approach both possible and credible. We describe the fit and the specific value that your company brings to a given partner in the partner’s language. We present the strategic product, technology and competitive advantages that the partner will gain from this relationship. Thus, when we meet to explore the opportunity, the partner is already keenly attuned to the value your company can bring to them.

In the course of learning more about a given partner’s specific needs and interests, we can make informed decisions about the appropriate path to pursue. Thus, we open the door to the types of unplanned, value-building partnership opportunities described here.