ONRAMP

Water solution providers with a growth-by-acquisition mandate typically prefer acquisition candidates either with established businesses generating >$50 million in annual revenue or significant evidence of robust year-over-year revenue growth potential for commercially accepted proprietary products.  Global Water Advisors has supported many such M&A activities and observed that the demand for high value tuck-in acquisitions with significant growth or product leverage potential greatly exceeds the available supply.  ONRAMP is a cost and time efficient method to demonstrate robust year-over-year revenue growth potential for early stage investor-funded water technology businesses with the goal to create attractive acquisition opportunities for strategic buyers from the water solution provider community.The primary success factor for such a water technology investment strategy is the depth of market knowledge, especially the understanding of complex market behavior, coupled with ready access to trusted and established sales channels.  Global Water Advisors ONRAMP teams are comprised of experts chosen for each ONRAMP project based upon their relevant knowledge, experience, reputation, and  water industry contacts.

The ONRAMP approach selects and develops investment opportunities where typically significant product development has already been completed by the licensor such that the bulk of early stage investor funds can focus on product form factor development and rapid entry into selected target markets that will validate the value proposition for mainstream markets.   All work and related business operations functions for each ONRAMP project are performed by GWA Advisors within the context of a “virtual company” created to achieve specific development and market entry objectives.

ONRAMP’s primary goals are to create early positive cash flow and allow early stage investors the option of either exiting early with a significant return via a tuck-in acquirer or forming a new fully-staffed company to continue growth of the business.  In either option, GWA will provide continued support as necessary to facilitate the transition.

ONRAMP project phases occur per the following sequence with investor go-no go decisions made at the end of each phase in order to minimize investor risk:

1) SCREEN – GWA water industry experts  evaluate and select licensable technologies with significant potential for rapid commercialization via a screening template that confirms “real world” commercial viability and identifies prospective strategic buyers upon success of the investment plan.

2) PLAN DEVELOPMENT  – For investment opportunities that survive rigorous screening, GWA experts develop a comprehensive plan inclusive of specific weekly tasks, schedule, and overall cost estimate as necessary to achieve investor objectives.  For timeliness and efficiency the elements of the plan are based upon the assumption that the preferred investor outcome is the earliest exit possible with significant return and minimal investment risk. The deliverables for this phase are the execution plan, identification of the project execution team and manager, early stage commercial rollout activities that provide a reliable estimate of real-world commercial potential, and a validated prediction of potential investment value in the event of an early investor exit via sale to a strategic buyer.  For example, a typical $1,000,000 investment in overall plan execution might be expected to create a valuation of $5,000,000 via sale to a strategic “tuck-in acquisition” buyer after a <24 month plan execution period with a >50% probability of success.

3) PLAN EXECUTION –  A “virtual company” is created and comprised of a GWA ONRAMP project tam, led by a GWA project manager, to execute the plan with weekly project updates of tasks accomplished versus objectives and schedule.  The deliverables for this phase are a comprehensive report and investor presentation that presents the final results of the execution plan and presents options for either an early exit via sale to a strategic buyer or continued investment to further improve valuation of the original investment.

4) EXIT ONRAMP –  Although the ONRAMP project strategy and plan execution is based upon a  “strategic buyer” exit, ONRAMP project investors may opt to continue with further investment and development via a new, fully staffed, start-up business.   The GWA ONRAMP project team will provide support services as necessary to assure continuity for  any desired ultimate exit strategy.

In addition to the new “virtual company” investor scenario described above, GWA also offers the ONRAMP project method to water technology solution providers as a timely and cost effective means to evaluate water technology investment opportunities and/or to efficiently accelerate commercialization of early stage internal innovations in order to avoid internal full time staffing costs and minimize distractions for existing business groups.

Contact Global Water Advisors for an expert assessment of how the ONRAMP project method can accelerate commercialization of your water technology investment or new business opportunities