CORPORATE & BUSINESS STRATEGY
Always have a strategy. The video game industry is unique and dynamic, shaped by innovative technology, entertainment industry trends, business innovation and globalization. No game company big or small should ever be without a strategy. Making great video games to make money is not a strategy - it's an aspiration. It's where everyone should start. It's the details that come after, the alignment behind a vision and consistent execution that sort out the winners and losers. Strategic Alternatives is passionate about the industry, strategy, and working with entrepreneurs. Serving our global client base keeps us always thinking about the challenges that come with the next big inflection point down the road.
We have a proven process for strategy consulting with our select group of clients. We work collaboratively with each client on the “big” questions of vision, company & product differentiation, corporate formation, organizational structure & development with the purpose of growing the enterprise value of each client over the long term.
Never negotiate an acquisition by yourself. Most game industry entrepreneurs are fortunate to see even one acquisition in their lifetime. It can be a life-changing event, the stakes are high. You will be negotiating against a team of professional business people whose career has been focused on buying companies at an advantage to them. Acquisitions are confusing and have many moving parts and financial, legal, and tax ramifications to consider and mitigate. With our firm's experience and expertise at your service, we can help maximize the value of your exit - one of the most important events in the life of you and your co-founders.
We are not brokers or an investment bank. We never put our clients up for sale through a “process” which is a sign of duress for the company being sold and lowers your market value. Instead we validate, structure, and negotiate premium exits for our clients with buyers willing to pay a higher price because their purchase is strategic rather than opportunistic.
Be wary who you let into your business. Before you take an investment into your company, you should know what you are going to do with the capital. Not every potential investor is a good investor for you. Investments can destroy your chances of an acquisition down the road if incorrectly undertaken.
We can help you think through the right type of investors for your needs, create the valuation and materials you will need to speak with potential investors and we can help you navigate the negotiation of the investment agreement.
BUY SIDE SERVICES
When you are in unfamiliar terrain, hire a guide. If you are a foreign publisher or investment fund looking to make investments overseas or in a targeted space such as e-sports or VR/AR, we can serve as your strategic partners. We work with foreign companies on everything from market entry strategy, deal pipeline development, to deal negotiation and acquisition advisory. Contact us to discuss your needs and see if we might be right for you.
We can teach you to fish or catch that fish for you. Deals for publishing, distribution, licensing, and other essential services are the lifeblood of the game business. A great developer should build up relationships with publishers, platforms, and financial investors. We believe that a developer is stronger if they learn to negotiate their own deals and understand what is in their agreements. We have decades of deal making experience and can either do a complex deal on your behalf or coach you through your first few deals until you are confident to do it yourself.
Take advantage of your audit rights. Have you ever suspected that your publisher is calculating your royalty incorrectly? Revenue share mistakes are common and not always intentional. Contracts are not all uniform and often the nuances of a revenue share agreement are lost to a royalty accounting department. That's why you negotiated audit rights in your contract. But most developers hesitate to use them out of confusion or fear of provoking the anger of a publisher. We are not an audit firm, but we manage the audit process on your behalf. We run your audit and negotiate with your publisher so you don't have to. A simple mistake can cost you millions of dollars. An audit can correct this.