AN INTERESTING TURNAROUND
Problem | 42 plant bakeries producing 440 million loaves annually experiencing breakeven results with little profitability. Very well run business with strict management disciplines, including weekly benchmark key performance indicator management.
Our Perspective | urbanization over the past decade had shifted the markets.
Solution | exit rural markets (extract cashflow and exit). Invest heavily and refocus urban operations to dominate their catchment areas.
Result | a reduction from 42 to 14 operations, heavily refocused to larger, urban units. In second year, a 20x increase in profitability and achieved industry average profit ratio’s.
IMPACTING AN INDUSTRY VALUE CHAIN
Problem | ownership of grain in a developing country was paper based, reducing speed and trust in trade and financing.
Our Perspective | corporate users of farm production wanted a seamless experience.
Solution | a national in the cloud electronic register integrating the value chain including farmers, silo elevators, banks, traders and manufacturers and commodity exchanges.
Result | de facto new standard successfully implemented and adopted by the industry. Project success recognized by the United Nations.
Problem | online social media ad exchange wanted exponential growth on a limited budget.
Our Perspective | users of social media do not benefit from the ad revenue on social platforms.
Solution | as user joins, incentivize them to structurally draw the next round of users in an ever widening circle.
Result | ad exchange in six months has 53 million audience reach, growing at 1,3 million per week.
AN UNUSUAL SAAS VALUATION
WHY EXITING SHAREHOLDERS SMILED
Problem | SaaS shareholder wanted to exit yet lacked bottom line profitability or revenue growth curve to support a valuation.
Our Perspective | the company discounted their product, causing pain to the competitors that could be valued.
Solution | value the discounting caused to competitor’s own sales pipeline rather than the financial results of the underlying business for sale.
Result | a revenue rather than profit valuation model, achieving 4,2x revenue multiple valuation from strategic competitor.
INTEGRATION AFTER ACQUISITION
INTEGRATING THREE BUSINESSES
Problem | healthcare administrator required critical mass to compete effectively.
Our Perspective | some competitor valuations were depressed as their organic growth curve had flattened.
Solution | acquire troubled competitors and integrate the 950 staff onto one effective processing platform.
Result | acquire two competitors in one year and integrate all three into one single business. Increased competitive positioning and 25% reduction in cost per transaction processed.
SOFTWARE AND FINANCE
Project Money Laundering
Problem | a country’s central reserve bank was awash in paper and struggling with national money laundering controls
Our Perspective | avoid reporting layers and integrate big analysis straight into raw SWIFT data, the backbone of how money is transferred internationally
Solution | build a simple technology system that integrates SWIFT data and analyzes every single cross border money transfer without the need for bank level reporting or involvement
Result | six months from conception to full deployment. Client country used new controls to justify International Monetary Fund to release annual payment and solution profiled by SWIFT globally
Problem | disparate systems for risk management, audit and compliance created complexity of operation at an international banking client and a large food manufacturing client
Our Perspective | using the key fields of each discipline, build and deploy a solution that integrates across disciplines and is seamless from internal audit planning, through all departments with risk and audit committee direct reporting
Solution | build a cost sensitive in-house bespoke solution
Result | product created and deployed within 6 months. PwC signed up as channel distribution partner for regionally similar clients. Implementation resulted in food client outsourcing all ERP functions to us.