Fundamental investing is an approach meant to focus on the real value of an investment opportunity - not just the perceived value. Many DeepBench clients use this approach to evaluate the difference between the true value of an opportunity and the hype surrounding an opportunity. A simple rule of thumb to understanding a fundamental investing approach: invest based on what is real, not what is popular. An easy current example to help explain fundamental investing is Bitcoin. Recently, the media has fallen in love with bitcoin and ICO’s, but what does this mean in reality? Is the real [...]
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So far Cid Andrews has created 14 blog entries.
In considering an acquisition, there are a lot of important questions to consider, and we will only review a few here. However, these fundamental questions will help shape how to conduct research with advisors, the potential target company, and your internal team. How does this business fit with our existing portfolio? What synergies will be created? What will we be able to add to the company in order to lever the investment? How do we make sure that the combined entity will be greater than the sum of its parts? Why are we the best group to [...]
As a distributor, you may be facing tough questions while deciding whether to enter a new market. We pulled together a list of quick questions that may help you discover the information you need to make an informed decision within your company: Is there existing demand for the product in the new market? Is your team willing to adapt the product to a local market? What other similar products have expanded to this market, and what lessons could you learn from their experience? Did they succeed, fail, or run into major obstacles? Are the customers in the [...]
As a supplier, you may face incredibly important strategic questions when launching new products or launching in a new geography. We pulled together a quick list below of sample questions that DeepBench clients have used to evaluate such a business opportunity: What are the high-level trends in demand for the product category? Who else offers similar products, and what are they known for? Would the product be a complement or substitute to any existing products in your portfolio? Is there any overlap between customers, or between decision criteria in the buying process? Refer to similar cases: How [...]
When identifying an expert network to use, first identify what are your company’s own needs: What timeline are you facing? Are you looking for a broad selection of possible experts, or a concentrated number of hand-selected advisors? What is your budget? Is this a one-time need, or an ongoing business requirement? Next, consider the expert network options and compare: How easy is it to review their candidates? How do they share expert background information with your team, and how easy is it to navigate? How do they handle upfront payments? Some networks require significant upfront contracts, while others pursue [...]
Congratulations, you’ve been recognized as an expert in your field, and asked for your time to share your knowledge with a client. What are some things to expect from an “expert interview”? You will likely be asked specific and high-level questions on your expertise and / or general questions on the industry. Remember that you should not share anything that is confidential or sensitive to your employer - you will be trusted to use your judgement on how to answer appropriately. For example, if there is a question about estimating market size or trends in the industry that [...]
The main differences between expert networks come down to three traits: Size & Flexibility Technology, or capabilities to find the best experts Level of Service, or “willingness to go the extra mile” So, how does one differentiate and choose between expert networks? Core questions come down to – what are some expert networks good at, and why? Are they good because they have access to a Rolodex of candidates, or are they good because they can tangibly find experts that other firms cannot? How about their different practices – does the expert network show you the best advisors [...]
Organizations use expert networks to acquire high-level knowledge about specific topics, generally while conducting market research. Use cases range from: Consulting companies trying to learn more about a new business, market, or product. Private equity groups researching a potential investment, or market that may impact their investment (supplier, distributor, etc.) Investment firm looking to conduct due diligence on a business opportunity Consulting firm doing market sizing and bench-marking IT consulting firm looking for help from specialized engineers to consider new solutions to building a tech product Marketing teams looking to find specialized advisors for ongoing consulting work [...]
Expert networks are sometimes referred to as "learning networks." This change in terminology represents the core intent of traditional expert networks - to help organizations learn from those with specialized knowledge. While many people are uncomfortable referring to themselves as an expert, almost everyone realizes that there is a topic they can generally "teach" others about. Sharing this specialized knowledge with others is essentially taking time to teach others and help them learn more about the areas in which you have developed deep knowledge from years of experience in a particular industry or market. We encourage our [...]
Basic Best Practice for Advisors Be on time for calls. Treat it as you would a professional interview, without the pressure of preparation. Make sure there is no noise in background. No interruptions. Get in a place with good reception. Speak at reasonable pace, speak clearly, Pause every 30-45 seconds max, make sure still right direction. Don’t be offended if client steers conversations in a different direction, want to be as useful as possible during call Minimize Jargon Unless the client has indicated that they are familiar with various industry Acronyms, assume that they are an intelligent outsider [...]