Strategic options analysis for a mid-sized challenger

Challenge

Our client, the Managing Director of a mid-sized challenger brand, was struggling to create a strategic plan and needed support to produce scenario analysis on a number of strategic options.

This was at a time in the market when multiple customer books were being offered for acquisition but our client didn’t have a model by which to determine economic and strategic fit.

​Solution

 

We leveraged our P&L, balance sheet, and cash flow model, along with our scenario planning tool, to analyse the supplier’s business model, identifying weaknesses in its pricing strategy, and overspend on OPEX determined by price cap.

BFY was also able to identify the economic value in the M&A options being presented, and provided a series of options back to the board for decision.

Results

Our client successfully seized the opportunity on two of M&A deals it was presented with.

Our client was able to turn around a loss-making customer group, increasing operating profits by 10%, and embark on improvements to its operating model that delivered millions in cost savings.