Strategy for a leading internet company.
Our client is a leading player in the internet sector and plays an important role in the international world of email marketing. Our client organizes and executes large-scale email campaigns including the follow up for major brand manufacturers. The core competencies of our client are developing the software tool, providing consultancy services and realization power. In addition, websites are built from a tradition. Our client has a great urge for expansion and has opened several branches abroad. The risk profile as well as the growth potential of the company have therefore increased. The financial resources are limited in relation to the growth objective. A third party could possibly accelerate this.
Our client is wondering how he can maximize the value of his company and shares. Should he bring in a financial party at possibly unattractive conditions in order to grow faster and be one step ahead of the competition? Can he become part of a strategic party in order to maximize the value or is it better to continue independently?
The perspective of the current earnings model was discussed in depth with the client. Relative certainties and uncertainties were identified, which resulted in a valuation of a stand-alone situation. This valuation range was the reference point for looking at other scenarios. In close cooperation, the business plans for each country were further detailed and substantiated. Future objectives became clear and the growth of the organisation became visible to our client. The belief in the unrealised potential made our client decide not to join a strategic party. A clear business plan was formulated with phased growth. The shareholders also discovered that they could not discipline each other to keep to this plan. It would be better to have a pair of strange eyes. It was decided to bring a financial party on board to create more balance in the shareholders' meeting.
A clear picture of the future combined with an agreed risk profile between shareholders was the result of this assignment. The noses of the shareholders were aligned and country managers were clearly instructed, in short, strategy was translated to the operational level.