Acquisitions for good presentation for asb ct


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A fundraising program for Not For Profits. I believe in thinking different and it just happens that this solves problems.

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  • Travis
  • My experience
  • It takes close to 2 years if you have a a1 team!
  • How a new model of establishing a social enterprise can deliver greater social good more effectively and at lower cost. Internationally proven ‘ acquisitions for good ’ model
  • Acquisitions for good presentation for asb ct

    1. 1. Acquisition for Good ASB Community Trust Social Funding Working Group
    2. 2. What we will Cover Today1. Who are We2. Social Innovation and where A4G fits3. A4G’s benefits4. The international picture5. The 7-Step Process6. The NZ environment7. A4G way forward in NZ8. Roles for ASB Community Trust
    3. 3. Vivien Maidaborn 17 years Leadership experience in the Community Sector
    4. 4. TRAVIS O’KEEFE+ Highly accomplished and results driven executivewith over 19 years of successful new enterprisedevelopment and business leadership experience.Achieving revenue, profit, and business growthobjectives within start-up, turnaround, and rapid-change environments.+ Acknowledged in New Zealand for Innovation andEntrepreneurial achievements in 2009+ Passionate about helping not-for-profits convertinto not-for-loss via development of
    6. 6. Social Innovation is a disruption tothe current system resulting inbetter social outcomes
    7. 7. POTENTIAL REVENUE MODELS FORSUSTAINABLE SOCIAL INNOVATION4 OPTIONS1) Charge for existing services2) Traditional funding3) New social enterprise start ups4) Acquisitions for Good
    8. 8. New social enterprise start ups High Risk: 90% FAIL IN THE FIRST THREE YEARS
    9. 9. If you had an experienced ‘start up’ team – 4 YEARS 1. ideas generation12 mths 2. interrogating ideas and refining options – which may include some crude financial modelling of their likely implications for income and expenditure 3. market research to test the feasibility of an option12 mths 4. developing an operational plan 5. piloting the project 6. development and implementation24 mths 7. successful generation of a surplus
    10. 10. ECONOMIC ENGINES The Acquisitions Model A proven model where charities buy profitablebusinesses and turn them into social enterprises. = LESS RISK + FINANCIAL SUSTAINABILITY + LONG TERM SOCIAL IMPACT
    11. 11. Acquisition for Good (A4G)The WHYTo develop new pathways to sustainable NFPs with less risk andcost than start-up social enterprises.The HOWBuy profitable businesses that have a potential for growth andmeasurable social impact, in particular employment ofmarginalised groups
    13. 13. The A4G 7-Step Model
    14. 14. The A4G 7-Step Model… Creates a sustainable independent income stream for community organisations… Is lower risk than a start-up social enterprise… Easier access to bank funding than for a start-up… Increases the capacity of NFPs to do good… leads to a better SROI… Doesn’t distract executive staff from their core role… Creates a specialist acquisition knowledge and handover pathway therefore managing down capacity and capability risks
    15. 15. Not Reinventing the Wheel
    16. 16. The NZ Context• Fundamental changes to government contracting of community agencies over next 3 years• Tight focus of philanthropic and grant making organisations, resulting is less general support for service provider driven mission• Increasing complexity of multi systems issues families and community agencies work with.• Capability and capacity issues for Boards and Executives in community sector
    17. 17. “Some noted frustration with traditional funding methods that respond to what comes in, spread funding thinly and fund for short periods or in ways that do not build the capacity or sustainability ofrecipients. Some have signaled in their strategic plans a desire to explore different funding approaches (for example Bay Trust, TSB). ” Emerging Practices in Philanthropy – Funder Stories (Philanthropy New Zealand, 2012)
    18. 18. ASB Community Trust• What role might ‘Acquisitions for Good’ play in ASB Community Trust achieving its social and business objectives?• How much would NZ social capital be increased through the transition of ‘for-profit’ business to Social business?• What role would ASB CT see for itself to facilitate charitable organisations toward financial independence?
    19. 19. The launch model in ScotlandScottish Programme outcomes:• Lottery funded 3½yr programme to: – Increase knowledge of acquisition in the NFP sector – Create 8 – 10 Social Firms through acquisition• Support potential purchasers from “just interested in the possibility of acquiring a business” to “weve got a target company in mind”.
    20. 20. Scottish Programme– “Getting ready to buy” and other capacity building workshops– Access to pre-selected professional advisers– Use of pro forma documents to save time & money– Single portal with information on funding, SROI, structures and appropriate support– Free deal flow project management for pre- approved transactions– Working with Charities and potential sellers
    21. 21. Scottish Programme• Reduce risk by comprehensive support package and robust process• Strong links with funding and finance providers to work around timing constraints and bridging requirements
    22. 22. A4G way forward in NZ• Achieve a business, philanthropy, government partnership to provide leadership for A4G in NZ• Secure three years funding. – Set up, and process testing – Information, and ‘getting ready to buy’ workshops. – 8 Initial acquisitions – Establish deal flow