Case Studies - 3
This is a sample of engagements completed
Situation: The client wanted to evaluate the attractiveness of entering a new and large industry.
Approach: A detailed business case was developed for the client to enter this $20b market with options compared from a strategic and financial perspective for manufacturing, JV and acquisition. Detailed scenarios were developed that compared NPV of each option supported by an implementation plan.
Results: The client decided to enter the market with a phased strategy.
Situation: The client was concerned that there was a rapid escalation of claims cost over the years and dilution of service levels. OPEX was engaged to identify causes and develop an action plan to reverse the trend.
Approach: Trend analysis and detailed file reviews were conducted to determine causes and quantify opportunities to reduce cost and improve service levels. A detailed action plan was created to enable the client to transition seamlessly into implementation.
Results: Significant opportunity to improve profit margins was identified and implementation of recommended actions commenced.
Situation: Two of the largest market share players in this industry wanted to explore the potential of merging two product portfolios into a third party JV to achieve customer and cost synergies.
Approach: An evaluation of the market was conducted and a business case developed that tested the strategic and financial rationale of the merger. The merger was proven to be shareholder accretive and a case was prepared for both boards recommending action to proceed with the merger. A case was also prepared for the regulators to prove that there were no issues that would disrupt fair competition and market dynamics.
Results: The boards approved the merger and action has commenced to merge the portfolios.
Situation: The CEO/Board of a listed company (non bank lender) wanted to assess all options to achieve a step change in growth that would lead to revaluation of the company.
Approach: A structured framework was developed and used to assess options to grow organically, product and market development and diversification (including acquisitions). Three options were shortlisted after extended research and qualification through discussions with external parties and presented to the board, which was approved for implementation.
Results: Growth initiatives including M&A activities are under way .