If you could create your own fantasy board of directors, who would be on it? CO— connects you with thought leaders from across the business spectrum and asks them to help solve your biggest business challenges. In this edition, we ask a successful wine entrepreneur for her tips on dealmaking.
In this edition of "Ask the Board," we feature Neha Kumar, the Co-Founder and Chief Operating Officer of Full Glass Wine Co., a brand acquisition and management firm focused on acquiring direct-to-consumer wine companies to build a multibrand wine marketplace.
Full Glass Wine Co. combines the financial expertise of Kumar with the wine industry and logistics expertise of CEO Louis Amoroso to support a thriving business across the company's seven-brand portfolio. Here are Kumar's tips for making successful deals in any industry.
Understand the industry landscape
In my experience, one of the first steps in strategic dealmaking is having a deep understanding of the industry landscape. Whether you're raising capital or forging partnerships, you need to know where the opportunities and challenges lie.
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In my time in previous roles and now with Full Glass Wine Co., I've seen how crucial it is to leverage market trends and evolving consumer behavior to identify valuable targets for acquisition or collaboration.
The post-COVID shift in purchasing behavior toward direct-to-consumer platforms, for example, became a significant opportunity for Full Glass Wine Co. We saw that demand for home delivery was growing rapidly and that insight allowed us to make the right acquisitions at the right time, setting us up for significant growth.
Build your network
Dealmaking isn't just about numbers, it's about people. Over my career, I've learned that relationships and trust play a key role in successful deals. Strong networks can open doors to critical partnerships, investors, and even acquisition opportunities.
When we were working to grow Full Glass Wine Co., we leaned heavily on trusted industry connections to secure funding and find companies that fit our growth strategy. Having a reliable network of people who understand your vision and can vouch for your capabilities can be the difference between getting a deal done and walking away empty-handed.
Over my career, I've learned that relationships and trust play a key role in successful deals. Strong networks can open doors to critical partnerships, investors, and even acquisition opportunities.Neha Kumar, Co-Founder and COO of Full Glass Wine Co.
Be opportunistic and know when to consolidate
In today's fast-paced market, timing is everything. One lesson I've learned is that deals can often come from unexpected places. For Full Glass, consolidation became a key part of our strategy. We acquired companies like Wine Insiders, Winc, and Bright Cellars, each at a different stage in their development.
We saw that while each company had done well with their marketing and brand positioning, they had plateaued in terms of scaling revenue. Our ability to identify businesses that had reached a growth ceiling but were still strong operationally allowed us to step in and drive those brands to new heights.
Know when to walk away
Not every deal is the right deal. One of the hardest but most essential lessons in dealmaking is knowing when to walk away. I've worked on several funding rounds and partnerships where we had to assess whether the deal was truly aligned with our vision and long-term strategy. Not every acquisition or partnership will be the right fit for your business, and sometimes, the most strategic decision is to pass on a deal and wait for a better opportunity. Being disciplined in your approach is crucial for sustainable growth.
Don't be afraid to innovate
In dealmaking, the ability to innovate can set you apart. At Full Glass Wine Co., innovation is at the heart of everything we do. From finding new ways to use technology to create a better customer experience to identifying new niches within the wine industry, we are constantly looking for ways to push the envelope.
Thinking outside the box is crucial for staying ahead of the competition. Whether it's through acquisitions or strategic partnerships, the ability to bring something new to the table can have a huge impact on the success of the deal.
Foster a strong company culture
As you scale through strategic deals, it's vital to maintain a strong company culture. I've seen firsthand how important it is to ensure that the team and company culture remain intact even during periods of rapid growth.
This is especially true when integrating new companies postacquisition. Ensuring that everyone, from leadership to employees, shares the same vision and values will ensure that the business grows cohesively and that deals aren't just successful financially but also culturally. A positive culture fosters innovation and collaboration, which are essential for sustained growth.
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