Designing a Sales Process for a Boutique Investment Bank in Tax Credit Syndication
Background
A boutique investment bank with a 40-year history primarily focused on tax credit syndication found itself at a pivotal moment. Historically, the founder was the sole individual responsible for sales, leading to a bespoke, undefined process. The firm’s sales strategy revolved around raising capital from Fortune 500 companies to invest in infrastructure projects eligible for federal and/or state tax credits. This niche market had traditionally been dominated by institutional investors, with corporates rarely participating due to the complexity of the instruments, despite their high profitability.
Challenges & Considerations
- Complexity of Financial Instruments: The tax credit investments were sophisticated, requiring a deep understanding to effectively communicate their value.
- New Market for Corporates: Unlike institutional investors, Fortune 500 companies were not typically engaged in this market.
- Bespoke Nature of Previous Sales: Transitioning from a highly personalized sales approach to a standardized process.
- Integration of Various Functions: Aligning acquisition, underwriting, investment operations, finance, legal, asset management, and sales into a cohesive process.
- Training New Sales Team: Recruiting and ramping up a team with no prior experience in this niche market.
Objectives
The primary goal was to develop a model that could:
- Develop a structured sales process from scratch.
- Hire and train a new sales team.
- Create comprehensive marketing and sales collateral.
- Understand and document the roles of various operational functions.
- Map out the investor journey from initial contact to the exit of their investment.
- Standardize legal documents and procedures.
- Enhance the investor experience by ensuring a consistent and high-quality process.
Approach & Implementation
- Function Analysis: Conducted thorough interviews and workshops with each operational function to document their roles and interdependencies.
- Investor Journey Mapping: Mapped the entire investor journey, from the first interaction with sales through to the exit of their investment position, highlighting key touchpoints and necessary interactions.
- Collateral Development: Created a suite of marketing materials, including:
– Pitchbook slides
– Brochures
– Educational pieces
– Blogs
– Simplified investment models
- Legal Standardization: Standardized all legal documents to simplify and demystify the legal aspects of the investments.
- Process Documentation: Developed detailed procedures and guidelines for each step in the sales process, ensuring transparency and repeatability.
- Sales Team Training: Implemented a comprehensive training program for the new sales team, focusing on both product knowledge and the newly developed sales process.
Outcomes
The implementation of a structured sales process brought several significant benefits:
- Improved Onboarding: New salespeople were able to get up to speed quickly due to the detailed documentation and training program.
- Enhanced Coordination: Clear documentation of roles and interdependencies improved coordination across various functions.
- Consistent Investor Experience: A repeatable and transparent process ensured a consistent and high-quality experience for investors.
- Market Expansion: The firm successfully engaged Fortune 500 companies, expanding the market beyond institutional investors.
- Increased Efficiency: Standardized legal documents and processes reduced time and complexity in transactions.
Conclusion
Designing a sales process for the boutique investment bank was a transformative project that bridged a 40-year history of bespoke sales practices with the need for a scalable, repeatable process. By understanding the intricacies of each operational function, mapping the investor journey, and developing comprehensive collateral and training programs, the firm was able to establish a robust sales process. This not only facilitated quicker onboarding of new sales personnel but also ensured a consistent and high-quality investor experience, ultimately driving the firm’s success in a competitive and complex market.