Strategic Due Diligence & Value Creation

Our Services > Private Equity > Strategic Due Diligence & Value Creation Identification of Italian Restaurant

Client Overview



    The acquisition target of our client had an ambition to expand the number of outlets to capture additional market share, and wanted to enter a new market to grow its revenue stream.

     

    Complications

    • The current liquidity capabilities of the acquisition target limited its scale for expansion.
    • Additionally, the acquisition target did not have a system to effectively identify current and potential market offerings that can help streamline their operating procedures.
    • The acquisition target has yet to test its unique market position within the full-service restaurant landscape, nor has the acquisition target defined its value propositions and service offerings.
    • The size, potential, and perfect of market capture of new markets and various customer segments have not been quantified.

    How Embarkley & Company Has Helped

    • Embarkley assessed the deal’s potential growth by quantifying the Italian restaurant’s market potential in various geographical districts in the local full-service restaurant landscape.
    • Embarkley analyzed the competitive landscape for an equity investment firm to gain a clearer picture as to who the competitors and substitutions are.
    • Embarkley articulated the acquisition target competitive positioning, corporate uniqueness, value proposition, service offerings and go-to-market approaches to propose value creation strategies.
    • Embarkley devised a value creation strategy plan for the acquisition target with organization capability development & transformation and business management proposals for execution, acceleration and business results tracking.

    Outcome

    • Embarkley helped identify the market segment that is profitable, hence valuated the acquisition target being able to generate over $1M free cash flow per year (based on current operations).
    • Since providing the value creation strategy recommendations, Embarkley have also helped the client enhance operational efficiency.
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