Transaction Processing Strategy Generates $700 Million Equity Deal
CEO promised to expand company's transaction processing revenues without conducting coherent analysis or creating roadmap to identify and pursue new opportunities.
Conducted thorough top-down analysis of global market. Also, performed capabilities assessment and gap analysis to identify top-10 target opportunities as well as preliminary framework for business model.
In this way, created company's first transaction processing strategy and business plan, which generated $700 million equity deal with Brazil and opened active target pipeline of $5 billion in attackable revenues.
Meeting Needs with Emerging Technology Opens New Markets
$16 billion in leased equipment, increased price pressure on assets, and idle units in economic downturn were weighing division down. As a result, division was struggling to meet revenue goals. Part of the problem centered on fact that low price was only competitive factor for division's commodity-based assets during time of waning demand.
Developed strategy to create technologically enabled "intelligent" assets as method to differentiate products in marketplace, add value-added "smart services," and increase customers' productivity. Upper management adopted strategy and awarded $3 million budget to build Asset Intelligence business. Success of venture led company to acquire asset-tracking provider for more than $25 million.
New Internet Sites Produce $1.1 Billion in Sales Leads
Internet channels were threatening financial stability of corporate financial services divisions. Company could not effectively counter assault because there was no coordinated online presence for potential customers to evaluate products or ask questions about services.
Held cross-business roundtable meetings to map different market segments' offerings, develop needs logic, and coordinate internal/outsourced resources to build series of web portal sites aggressively positioned at web competitors. Then, brokered alliances with partners to fully leverage new market presence.
30,000 new customers using portal sites produced $1.1 billion in incremental sales leads.
Experienced Leadership Forms Innovative, $90 Million Joint Venture
Company wanted to win larger share of $2 trillion foreign exchange market. However, personnel lacked experience and skills to effectively manage comprehensive international expansion deal.
Recruited employees for team and provided comprehensive deal process training. In total, directed more than 50 cross-functional employees across all departments and secured board-level partner for team. Finally, spearheaded complex contract negotiations with international partner in order to create equal joint venture.
Formed $90 million joint venture with Reuters in United Kingdom, which became industry's first foreign exchange business of this type.
Successful London Expansion Combats Competitive Onslaught
Financial media company needed to expand into London market to combat international threat from competitor Financial Times' foray into Internet. While key board members were reluctant to use cash from IPO to fund expansion, company had no alternative counter-attack plans.
Constructed business model for expansion from scratch by gathering input from all functions. Met with several potential international investors to explain concepts and walk through model.
Successful London expansion plan eventually generated $17 million in post-IPO funding from global investor syndicate.
Probing Analysis Reveals Unforeseen Risks
Company was pursuing consolidating acquisition with U.K. financial services firm, a subsidiary of Barclays. It was incredibly difficult to predict portfolio's risks due to discrepancies in contracts, laws, and accounting methods used in U.K.
Analyzed portions of contracts and portfolio assets onsite in London in support of 50-member due diligence team.
Due diligence analysis revealed material risks on acquisition of $2 billion U.K. home equity loan, which company was able to address and mitigate contractually in subsequent negotiations.
Well-Planned Divestiture Yields $70 Million Gain
Division needed to divest of substantial non-core assets without damaging profitability. Ideally, division was hoping to create divestiture plan that ultimately added to bottom line. However, division failed to analyze affordability and feasibility of options or identify potential buyers.
Developed business valuation and directed financial audit of carve-out. Then, coordinated roles of investment bank and finance, legal, operations, and human resources departments. Finally, developed comprehensive offering memorandum and marketed deal to financial buyers and private equity firms.
This $550 million non-core asset divestiture ultimately positioned company to earn $70 million on sale.
Opening New Doors Wins International Deals
New strategic analysis forecasted emergence of Israel and South Africa as high-opportunity regional growth arenas for global financial markets. Company currently lacked both contacts and opportunities in these countries.
Leveraged internal/external networks to gain introductions for CEOs. Arranged exploratory meetings in Israel and coordinated CEO's representative attendance at industry conference in Bangkok.
By opening new doors, initiated discussions with representatives of Tel Aviv and Johannesburg stock exchanges, leading company to strike international originating deals with emerging market businesses, representing more than $100 million.
Game-Changing Strategy Mitigates Risk on Idle Assets
Demand was falling for company's outdated lease assets, creating projected $20 million shortfall in segment. In addition, if this planned divestiture option failed, company lacked viable alternatives apart from business as usual processes.
Conducted deep-dive industry, market driver, future trends, and threat analyses to map strategic positions of current industry players. Based on this data, presented three strategic options to management with quantified risk-return tradeoffs. Presentation clearly explained complex concepts surrounding options, bolstering leadership's decision-making ability.
Leadership ultimately chose game-changing privatization acceleration strategy using third-party industry players, which mitigated $15 million annual income risk on $50 million in idle assets.
Adroit Leadership Grows Startup into Profitable Business
Company's newly created Asset Intelligence group needed to expand into full production and grow market share in new arenas. This was difficult because group lacked effective leadership and had tenuous supply chain with inconsistent quality.
Personally hired, then managed, 12-member team in securing international supply chain that included South Africa and Israel. Next, transferred production from boutique shop to high-volume producer and improved quality to 3+ Sigma level.
At onset, group comprised 6,000 units and generated annual revenue of $2 million. By developing team of experts and expanding production, grew company into stand-alone business of 65+ employees with annual revenue of more than $12 million generated from 150,000 units worldwide.
Partnership with Competitor Slashes Unit Cost $300
Corporation had accumulated 80,000-unit backlog of customers awaiting new "smart asset" sensor technology. Backlog grew because internal sensor development was repeatedly delayed and production costs were spiraling out of control.
Leveraged 6-Sigma methods to assess available alternatives. Then, initiated contact with competitor to license industry standard, off-the-shelf, bolt-on technology.
Ultimately, negotiated $750,000 supply contract with competitor, which reduced costs $300 per unit, opening 80,000-unit sales pipeline.
Combining Eastern & Western Business Styles Secures $3+ Million Contract
Company wanted to capitalize on business opportunities in South Korea's rapidly expanding market. However, tentative attempts to leverage contacts lacked direction, and series of non-actionable Memorandums of Understanding (MOUs) sidetracked these efforts as well.
Contacted principals at KRX during conference in Seoul. Then, together assessed opportunities in both Korea and U.S. Secured local Korean legal counsel and negotiated terms with KRX. Finally, personally obtained Board's approval.
By combining Korea's relationship-based business style with structured Western approach, secured contract for more than $3 million with Korean firm, which Korean Deputy Prime Minster also signed.
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