Due Diligence

Successful investors know to spend their time verifying and validating that an emerging company belongs in their portfolio…before spending their money making the company a success.
The highest quality, least cost and most timely due diligence is performed when the experts involved understand the team, the technology, and the financial metrics for the company under consideration as well as the market space under consideration. A due diligence effort missing any one of these will fall short, lacking much of the critical information you need to make an informed decision.

Varied opinions are formulated during due diligence, often times leading to a further evaluation of the company’s inner workings and external market forces. Getting answers to your questions is generally not the problem. Knowing all the right questions to ask frequently is.

What We Do

z2m4 Advisors’s time-tested due diligence process is a proprietary approach, built on the Bell-Mason Diagnostic Method for evaluating technology businesses. We work independently or in conjunction with your venture capital colleagues to evaluate the market, strategy, technology, management, and financial aspects of a company. We strike the right balance between process, experience, and analytical insight.

First, we begin by gathering the requisite due diligence items followed by site visits to the company, the competition, and possibly its customers and prospects. From there, we provide a preliminary report to the venture fund for review. This is followed by a final report to the fund and as appropriate, to the company.

At z2m4 Advisors, our management consultants have the scar tissue that can only be derived from experience with troubled companies and successful businesses. We understand the pitfalls specific to the market segments in which we offer our services. As a result, we can focus on the right questions - and deliver the right answers - without delay.

Venture Validation

At the time of an initial investment it’s your expectation that, over time, the portfolio company’s valuation will grow to meet or exceed your fund’s rate of return objective. However, the final tally is most typically a blend of varying operating company results, from wild successes to dismal failures.

Throughout the life of your fund, you find each portfolio company at a different point of inflection, making it difficult to know precisely whether to continue funding, and at what valuation, or fold. Adding complexity are situations where proceeds from previous investments are close to being spent and successive rounds are needed to achieve additional milestones on the way to product leadership, cash flow breakeven, profitability and market dominance.

The what-to-do decision is not always so clear. Widely varying points-of-view, within your investment syndicate and between your partners, can make it even more difficult to determine the proper course of action. And even the best-informed perspective is probably incomplete. Yet, the tough decisions must be made; winners and losers must be chosen.

How We Do It

Whatever your outlook on the venture, getting another informed viewpoint is always helpful, and in the long run, will save you time and money. And this is where z2m4 Advisors can be of substantial value. We evaluate the intellectual property assets, the human capital resources and business strategy, "framing the gray" to give you a clear, concise, informed perspective of the opportunities, risks, and key indicators for success.

Throughout nearly twenty years, what has emerged is a method for business assessment that is both broad and deep, thorough and thoughtful. This method has been tested and proven highly effective and extremely valuable. We call this Venture Validation.

Syndication Services

As a professional investor, finding the right partner to lead your portfolio company’s next round is often a challenging and, in this market, sometimes frustrating experience -- especially when the ideal profile is a capital management professional with whom you don’t ordinarily invest.

That’s where z2m4 Advisors makes the difference. One of our strengths is building syndicates where a new investor can cast a longer shadow. That's because they have experience, relationships, and credentials in the business of your business and in the business of your portfolio company.

The principals of z2m4 Advisors have formed and sustained trusting relationships with those who have invested in us as CEOs and CxOs of successful portfolio companies. Over the years we’ve reinforced this network by including other investors who’ve co-invested in numerous other transactions.

Rather than simply shop a Private Placement Memorandum, we target a select group of individuals. These are people who, over time, have come to rely on z2m4 Advisors for deal flow that's consistent, reliable, and high quality. The objective is to maximize valuation with a minimum of effort. Where we already have the right relationships (ours) with investors who have a preference for particular products or services (yours), the time-to-transaction is typically less than ninety days.

Turnaround

You've known for a while now that a business you manage or in which you've invested isn't performing as well as it could. That means your investment isn't paying off, either.

If the problem is one of leadership, your best move may be to call in a seasoned professional from z2m4 Advisors to get the business back on track and headed toward building value. Similarly, if a senior executive quits, is fired or moves to another line of business, we can step in as an interim leader to quickly ease the transition and assure continuity.

How We Do It

z2m4 Advisors’s partners and affiliates makeup a corps of experienced, disciplined and proven professionals who know virtually every twist and turn on the road to success. One of our business experts will come on board, work closely with your staff, and get your company headed in the right direction.

When they make decisions about your company, our people think and act like seasoned entrepreneurs and investors. That’s because they are. They have the vision, judgment and experience to restore a business to health, keep it headed in the right direction, and take decisive action to drive revenues, relationships and profit.

Portfolio Company Acceleration

Income 20 pounds, expenses 19 pounds, 19 shillings, and 11 pence - result happiness. Income 20 pounds, expenses 20 pounds and 1 shilling - result misery.

Charles Dickens

Accelerated business growth requires working capital, a talented team, processes, and information systems. During a period of rapid expansion, business process cycle time becomes critical and often determines success or failure, especially in new or emerging markets.

Entrepreneurs who build new companies face many challenges in a high-velocity, fast-changing environment. Successful fast-growing companies need to rapidly assemble the people, the technology, the partnerships and the dollars necessary to reach critical mass.

How We Do It

z2m4 Advisors provides the vital resources you need when it matters most - during the expansion phase of your emerging company, line of business or innovative new product or service. We work with managers, investors and board members to build tomorrow's market leaders.

z2m4 Advisors gets involved early and moves quickly, keeping entrepreneurial spirit high while sticking to the plan. We have the vision and depth of experience to explore new opportunities in a fast-paced environment. We have the resources and contacts to help build the best team, forge the best partnerships and seize the right opportunities. We complement our proven track record in similar ventures with great breadth and depth in both private and public technology businesses.
All of this is underpinned using our unique model for Transitional Leadership…to ensure that the business operates predictably on its way to achieving the planned objectives, on time and within budget. z2m4 Advisors delivers the business savvy, leadership and seasoned professionals needed to ensure the sustainable success of your rapidly growing business.