The Situation
Our client was a long-term award-winning owner of a hospitality business operating in the tourism sector that was thriving. He was considering divestment and retention options for the business and seeking to evaluate the same using objective analysis as well as wanting help to consider what factors a potential buyer may consider in acquiring this business should he want to exit.
The Solution
The client was an existing coaching client and was introduced to our transaction strategy program, which we call the Potholes program. We identified and prioritized key Potholes and then analyzed divestment at various lease milestones.
To compare the economics of retention versus divestment, we used industry-standard EBITDA multiples. Since the client lacked a risk-adjusted cash flow model, we commissioned one, stress tested its assumptions, and ran multiple scenarios.
The Results
As a result of the review of the Potholes and the development of a quantitative economic model, the client was able to determine the full range of potential economic outcomes, which was a key factor in the client’s decision to retain the business rather than progressing exiting the business. In conjunction with the identification of the key “Potholes” and a plan to address them, the economic and financial outcome for the client was clarified, resulting in the identification of a clear best financial outcome and path forward and, importantly, the peace of mind that comes with quantitative solid financial analysis.
Take the next step!
Reach out for a FREE No Obligation Initial Consultation
Our Certified Coaches can show you how we can help improve performance
Get immediate results with a significant return on your investment
Find a Certified Coach
