Start-Ups / Mergers & Acquisitions

Business Development from Ideas to Major Transactions

Since its inception in 1992, ITB’s consultants have assisted with major business transformations. For established organizations, ITB has assisted with both the technology and customer due diligence for M&A transactions. For start-up organizations, beginning with early stage POCs to market trials, ITB has enhanced the market development efforts and strategic technology direction of start-ups. ITB’s DNA when technology matters is a philosophy instrumental to increasing a business’ returns from new technologies generally within the automotive ecosystem.

Mergers & Acquisitions Assistance:

ITB’s M&A assistance ranges from identifying potential targets using a weighted and prioritized system to performing selected due-diligence tasks to facilitating the integration of the acquired company. ITB’s extensive experience and market knowledge is key in identifying synergies and conflicts with the acquiring company which is then combined with an AHP-type process for prioritizing targets. Automotive transactions that ITB has been involved with include a Tier One interior supplier’s acquisition of one of its global competitors (Grupo Antolin/Magna Interiors), a chemical supplier’s downstream move into a Tier One role (Teijin/CSP), and assessing the ramifications of a Tier One/Tier Two thermal management supplier acquiring central heating capabilities.

Start-Up Development:

ITB’s extensive understanding of vehicle technologies has led ITB to increase its efforts in the start-up space.  These efforts include mentoring start-ups not only concerning their internal technical capabilities, but also with efforts to win early customers. Pricing strategies are discussed especially as to how these will impact valuation at the seed and Series A rounds. ITB consultants have been offered Board Roles as part of their start-up mentoring assistance. Examples of ongoing start-up assistance include assisting in the business development of:

  • Real time determination of spray nozzle droplet size distribution – an important process control technology for spray processes.
  • Unique heads-up display relying on the use of an innovative volume holography approach.
  • A group that breaks down organizational silos and develops a sustainable process-optimized component for use in automotive acoustics.
  • A digitized product development tool that replaces traditional product specifications with benefits that include a fully digitized specification that together with physics-based models and machine learning provides a full Digital DNA (Design limit, Nature of failure, Actual life).

In the last few years, ITB has partnered with Sente Foundry of Chicago to assist with the mentoring of a number of its start-ups. Most recently ITB is collaborating with Sente in the area of sustainability and a circular economy. This program offers corporations a Corporate Venture Capital as a Service (CVCaaS). The program is different from those offered by typical start-up accelerators in that there is close collaboration and mentoring of selected start-ups so as to help increase the potential for their success.  In particular, the program offers:

  • An approach that is not the same as many other start-up organizers. The process is not that of an accelerator but rather Sente (the program organizer) plays the role of a true Corporate Venture Capital as a Service (CVCaaS).
  • By the using the CVCaaS, a corporate sponsor has several benefits:
    1. The CVCaaS does not replace the sponsor’s own internal efforts – it is complimentary.
    2. The CVCaaS provides a major reduction in risk since the risk is shared with other corporations that are also part of the 2021 program.
    3. A sponsor would have a say in what focus areas the CVCaaS should seek start-ups.
    4. Sente has an exceptionally widespread network for seeking start-ups around the world.
    5. Sente provides mentoring to the start-ups in terms of business development, general “hand-holding”, business plans and legal aspects.
    6. A sponsor would have the option for investing in the start-ups and could further invest in the start-ups once they graduate from the program.

For further information on ITB’s collaboration with Sente Foundry in the area of sustainability and a circular economy, please visit:

https://www.sente.link/circular-industrial-economy

For more information and to learn how you can leverage ITB’s assistance, please contact:

Dr. Joel Kopinsky, Managing Director and Co-Founder

M&A and Start-Ups

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