Strategic and Financial Funding

Transaction Advisory > Consumer, Product and Retail > Strategic and Financial Funding

Growth Strategy, Financial Valuation and Assistance in Fund Raising for a Value Fashion Brand

About the Client

A value for money garments and fashion accessories brand and retailer was looking to conduct a strategic review of its business operations and develop a growth strategy along with a business plan for the next 5 years. The company intended to undertake the suggested business expansion by raising funds from investors.

Project Objectives:

Core objective was to conduct strategic review & recommend a growth strategy along with a business plan for the next 5 years, conduct financial valuation and assist in raising funds from investors:

1. What is the brand equity of the client’s brand?
2. What is the financial positioning of the brand in terms of total revenue, gross margins, personnel cost, selling cost, fixed assets, etc.?
3. What should be the future plans of the brand in terms of new product categories, sub-brands, markets, store roll out, etc.?

Deliverables:

A growth strategy was recommended based on current business analysis and market potential, which includes-
1. Overall positioning of the brand
2. Optimal product mix (category rationalization as well as new categories to be added)
3. Channels (own stores, shop-in-shop, online)
4. Roll out plan including the no. of cities and stores; pace of roll out; and size, format & location for new stores; etc.
Developed a 5 year business and financial plan as per the suggested strategy highlighting revenues, operating expenses, investment requirements and working capital requirements.
An Information Memorandum about the company was prepared highlighting company’s current positioning, financial valuation, future growth plans, etc. to present to potential funding companies.
Meetings were organized for interested funding companies with client’s management team for detailed negotiations to zero-down the terms for the deal.

Strategy, Valuation and Fundraising Assistance for Luxury Designer Retailer

About the Client

A designer owned luxury retail chain also offering uniform designing services to institutional clients such as hotels was looking to conduct a strategic business review and develop a growth strategy. The company intended to undertake the suggested business expansion by raising funds from investors.

Project Objectives:

Core objective was to conduct a strategic review and recommend growth strategy, conduct financial valuation and assist in raising funds from investors Key questions included:

How has the current strategy fared and accordingly what change need to be undertaken?
What should be the revised business targets and financial projections for the next 5 years?
What will be a fair value of the company basis existing business performance & future forecasts and help the company raise funds for future expansion?

Deliverables:

Existing business review:
1. Rationale behind existing strategy and how has it fared?
2. Evaluation of the prevalent company positioning, target market, product mix, channel, store formats and performance
Recommended growth strategy:
1. Key Proposition and Positioning
2. Target consumers and proposed sales channel
3. Optimal category / product and sales mix and pricing strategy
4. Detailed Roll-Out plan highlighting the pace of roll-out, cities for expansion, number and format of stores
Developed a business plan as per the suggested strategy highlighting revenues, operating expenses, investment requirements and profitability projections
Carried out financial valuation of the business, estimating it based on multiple valuation techniques including discounted cash flow, book value and relative valuation approach
Assisted in fundraising
Prepared pitch document for potential investor
Identified potential partners
Approached and solicited interest
Facilitated meetings and negotiations and signing of agreement