Considering gifting your portfolio more time?
In 2022, there has been a growing focus on how funded companies will need to invest in capabilities around planning. Growth at all costs will now become growth at the right costs. Prequate defines 'right' with a highly tailored & analysis driven approach so that organizations can keep the momentum going.
WHAT WE DO
& WHEN WE DO IT
HOW DOES GETTING PREQUATE ONBOARD WORK?
01
What size/ stage of companies do you usually work with? Is this something that is suitable for my portfolio or me?
What size/ stage of companies do you usually work with? Is this something that is suitable for my portfolio or me?
We are agnostic to the size & stage of an organization. We have been able to build a unique way to working with organizations of different sizes over the years.
Today, our clientele ranges from Seed-funded startups to Series E companies and from mid-size establishments to listed companies to global multinationals. However, the way we engage changes and becomes more specific beyond a certain size.
02
What is the role you play? How does it differ with each stage? Is it flexible enough to fit my portfolio company?
What is the role you play? How does it differ with each stage? Is it flexible enough?
The role varies from the objective of an engagement and the size of the organization. This defines the depth of work. Larger organizations require more specific initiatives while medium sized companies require a broader approach with smaller initiatives rolled-up together.
We are adept at both.
Our current portfolio is a good mix of early stage & growth stage startups, mid-size establishments, legacy organizations, family-owned businesses, large conglomerates, public companies and global multinationals.
03
What is Prequate’s model? What does engaging mean commercially?
What is Prequate’s model? What does engaging mean commercially?
There is a preference to work on a retainer to ensure that the team stays locked to continue carrying forward learnings. However, Prequate does also do a number of specific one-time engagements – especially when organizations want to address a critical imperative first. The average length of a one-time engagement is 40 days and is $15,200. The hourly ranges from $107 - $350 per hour. Retainers start at $3,500 a month.
Our typical relationship length has been between 2 - 3 years on average across all our continued value relationships.
04
Do you depute personnel on my finance team to be able to work with us?
Do you depute personnel on site to be able to work with our organization?
Unfortunately, no. We have found that the real impact of our work is highly built on combined contributions of the team working together on a challenge or initiative. Further, the team composition could significantly change during the same year based on immediate priorities or KPIs/ OKRs of the organization where our work could have a direct impact.
05
What are the areas within an organization that you spend time on?
What are the areas within an organization that you spend time on?
Initiatives that we work on include all divisions within an organization where there are measurements. However, we do not get involved in day-to-day operations as a practice except in case of business turnarounds.
06
Can you help me fix my accounting or payroll? I am considering having one vendor for all things finance.
Can you help me with my accounting or payroll or my compliances?
We can - but we don't. Its a question of DNA. The area of performance finance and strategic finance is a very different skill-set compared to accounting, payroll or compliance though they come under the umbrella of finance.
07
What industry sectors do you consult in? What if I am from a unique sector?
What industry sectors do you consult in? What if I am from a very unique sector?
Like all top advisory firms, we are industry-stage-sector agnostic.
But we do favor certain sectors where we enjoy a No-to-Low learning curve on macro-environment aspects (This list spans 25+ industry sectors currently).
There are some other sectors where we are complete outsiders when we start off - but we believe that has its own value. A complete unfettered and unbiased perspective that allows for richer insights.
08
Where are you based out of? Do you consult organizations situated in my country?
Where are you based out of? Can you consult organizations situated in my country?
Our talent center is based out of the Silicon Capital of Asia - Bengaluru with delivery partners across the world. Since 2010, we have worked with organizations in over 25+ countries across the world in 6 of the 7 continents. If you are from Antarctica, talk to us for a special discount. :)
09
How is this different from other fractional CFO/ Part-time CFO/ Consulting CFO firms or accounting firms even?
How is this different from my outsourced accounting team providing 'CFO' services?
How is this different from a fractional CFO or Part-time CFO or an accounting firm?
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Level of involvement: Advisory clubbed with direct participation as a member of the implementation team
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A team and not a person: Purely a team-based setup where a fluid team is assigned to work with an organization over a number of years with the business
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A rhombus & not a pyramid: Ex-consulting or banking team in a mid-heavy rhombus shaped team as compared with a pyramid shaped structure flush with junior members
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Experience: Team mix of CA/ CFA/ MBA/ CIMA/ AFM with a minimum 5 years of industry experience so a team isn't learning at the cost of the client
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T-shaped learning: Experience of team spanning 100s of organizations ranging from startups, mid-sized companies and public companies with experience profile across CFO, CSO, risk advisory, valuations, fundraising and strategy consulting
10
Where does Prequate fit in the market map of consulting firms? How do I place Prequate?
Where does Prequate fit in the market map of consulting firms?
Tangentially between an MBB & a Big4. But the point of difference are that Prequate does get operationally involved and participates in execution as well which is not a core part of the business model of the MBB firms or the Big4.
From a consideration standpoint, while the focus of the MBB is on strategy development & the Big4 is on technical guidance, Prequate occupies the tactical aspects due to its body of work that spans across both. Prequate has carved a niche in custom-built advisory using the t-shaped learning from the team.
11
What is Prequate’s awarded breakthrough approach? Should I really care?
What is Prequate’s awarded breakthrough approach? Should I really care?
Prequate’s OERT (an internal moniker that stands for Opaque Expert-led Revolving Talent) model uses experts/ sector specialists along with a team-based approach bringing together cross functional skillsets, each carrying their own sector expertise who come together to apply their T-shaped learnings to deliver break-throughs with low-to-no learning curve. On average our onboarding has been less than 15 days for a new account and has been rated 8.8/10 by clients.
This means that we are able to respond extremely rapidly, apply learnings from varied industries (also known lateral thinking) and offer insights that are actionable and data/ analysis backed.
On average, Prequate works with 4-5 initiatives over a year with one organization. The choice of timing of initiatives are based on (1) priority of outcomes & (2) cascading impact of initiatives.
12
How does Prequate ensure continuity of learnings?
How does Prequate ensure continuity of learnings?
Prequate’s SPOC, an Engagement Partner/ Engagement Manager remains constant across the length of a relationship. The team keeps rotating dynamically to allow for the best utilization of sectoral expertise/ initiative expertise based on the current priorities and initiatives being worked on.
On a quarterly basis, ~25% of the team rotates on an account to bring in fresh perspectives and newer skill-sets.
13
What portion of Prequate's work is on operations and what portion is core financial aspects?
What portion of Prequate's work is on operations and what portion is core financial aspects?
Initiatives we work on are most often the ones that have some amount of measurement involved. The majority of work is now switched beyond looking at finance and operations distinctly. About 80% of the measurements we work with are on operations and business. 20% are purely financial indicators.
We specialize in expression of operational aspects in financial frameworks – for e.g., unit metrics, CLTV analysis and predictions backed by user cohorts, CAC deep-dives and simulations using competitive scenario analysis, Growth project planning using NPV analysis, etc.
14
Who generally associates and who pays when Prequate is brought on board to assist a portfolio company?
Who generally associates and who pays when Prequate is brought on board to assist a portfolio company?
It’s a great question.
For engagements where we are working to help the investee’s management team or founders – we are introduced by the investors and we contract directly with the portfolio company. Some examples include (1) business - operational metrics development/ dashboard development (2) operating model buildouts (3) scenario analysis (4) cost optimization exercises (5) investee reporting management (6) decision path planning (7) capital budgeting/ growth plan forecasting (8) structured performance improvement initiatives.
In cases where we are being brought on to assist or complement their existing infrastructure, we are contracted by the fund. Some examples of this include engagements like: (1) austerity audits, mystery shopping or passive diligence (2) runway extension plans (3) business and valuation simulations or (4) portfolio/ asset reviews.
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