INVESTOR SERVICES
I. Investor Hidden Risks
The founder: your most valuable asset—and your biggest threat.
• Retention upside: boosts exit multiples by 20–40 % (Bain).
• Attrition risk: only 6 % of founders remain at four years—before a typical exit (Winsavvy).
Immediate costs of early departure
• Disruption: 94 % of deals face costly leadership replacement within four years.
• Revenue slump: in fashion & luxury, losing the creative lead typically slashes 15–25 % of revenue over two seasons (BoF).
• Value leakage: creative inconsistency, team defections, lost productivity and replacement fees—every gap chips away at your exit strategy.
Why it’s invisible
Due diligence uncovers balance sheet risks but misses critical insights that lie in founder’s assumptions, expectations and motivations.
Investors and creative founders often sit at opposite ends of the personality spectrum. Founders—especially first-timers—bring their own, instinctive expectations to the table, while investors rely on familiar deal playbooks that may not fit. Because their communication styles rarely overlap, misconceptions stay buried through signing and only surface after close—sparking distrust, disappointment or, in the worst cases, an abrupt founder exit.
II. Proposition/Solution
With 25 years representing top fashion talent, and certified-coach training, I uncover the founder’s motivations, assumptions, expectations, hot-button issues and team dynamics before you sign.
You receive:
1. Founder profile: motivations, expectations & team dynamics
2. Actionable insights: incentive or governance fixes tied to the founder’s priorities
3. Mitigation plan: early alignment steps to keep your acquisition on track
III. How It Works
1. Scope of Services
Define project goals, deliverables and timing up front—so success is clear from Day 1.
2. Insight Discussions
Relaxed, structured conversations with the founder (and any key partners you choose) to uncover:
• Motivations, aspirations & deal-term expectations
• Company culture, alliances & hot buttons
• Understanding of core terms (earn-outs, vesting, governance)
• Alignment with your strategy—and any hidden concerns
3. Actionable Intelligence Package
• Value Creation: effective, investor-friendly retention & incentive plan based on founder priorities
• Risk Mitigation: early-warning insights on misalignments or unmet expectations you can address pre-close (or monitor post-close)
• Implementation Support (Optional):
– Short briefs or slide decks for your team
– Follow-up coaching sessions with the founder to cement alignment
IV. Services
• Pre-Closing: pinpoint and resolve misalignments before you sign
• Early-Stage: routine “founder-fit” evaluations across your deal pipeline
Post-Closing: integration advisory, hands-on retention support through exit
“With a client list that reads like a who’s who of the fashion world, New York lawyer Betsy Pearce is the consummate industry insider. Her ability to navigate the process of placing value on creativity has positioned her as one of the most sought after advisors in the business.”