Case study - Strategic advice
Support in developing a business model, and fundraising two tasks, totalling around 4 EUR 4 million for tourism investments
DESCRIPTION OF THE CLIENT AND THE PROBLEM:
- A group of Hungarian investors contacted us in connection with two ongoing foreign tourism investments.
- During the two investments, the clients were confronted with the need to better understand the local market conditions and to optimise their business plan and the marketing of their restaurants to these conditions in order to be successful. In addition, they needed to raise additional capital to complete their investments , which they planned to do by attracting additional new investors.
OUR APPROACH:
- We aim to achieve the best credit terms for the customer, based on generating strong competition. We approached each of the banks active in acquisition finance and then narrowed the number of competing banks down to two per stage. The last two banks were negotiated until the last phase to maintain competition.
- During the process, the proposals were evaluated on the basis of their impact on the return on investment ratios calculated from the financial model of the investment.
- To create an equal information base, we prepared an information memorandum and managed the provision of information between the company, investors and banks.
RESULTS:
- We carried out a detailed market analysis and used this information to optimise the business plans of the hotels, with a particular focus on pricing and staffing policies.
- We have prepared investor pitches on accommodation and presented them to potential investors.
- We supported our clients in the share buy-out process with new investors.