Strategy Finance Advisory Incubation Due Diligence Valuation Marketing Modelling Sales Economics Business Plans Fund Raising Financial Control Pitching Ventures Turn Around Structuring Negotiations Team Building Communication CFO
Incubation
Strategy and Capital Raising for a Renewable Energy Start-up in Cambodia
Strategy and Capital Raising for a Renewable Energy Start-up in Cambodia
New Energy Inc was a renewable energy start-up with a great business opportunity but it was struggling to find financial backers. The entrepreneur had a great understanding of his business but had been unsuccessful in articulating it to the investment community.Maroon reviewed the business plan and identified that, as proposed, it had several features that would not appeal to investors. Our consultants then ran a workshop with the entrepreneur and key staff and from this, redeveloped the strategy. The initial scope was reduced and clear funding milestones were introduced, reducing the risk profile for the investor and allowing the entrepreneur to build a track record.
Our consultants then prepared a pitch and accompanied the entrepreneur on a roadshow to potential investors. Several expressed interest and Maroon went on to manage negotiations and structure a deal that lead to a $3m investment, enabling the client to develop their first facility.
Mergers & Acquisitions
M&A, IPO and Restructuring for Lower and Middle-Market Players
Our professionals have a deep experience of cross-border M&A for lower and middle-market players. Transaction history includes:
- Lead adviser to a Hong Kong company on the acquisition of an optics business with operations in Europe and China from a large European electronics multinational.
- Lead adviser on the IPO of a technology storage company with East and Southeast Asian operational presence on the Malaysian Stock Exchange.
- Lead adviser on the IPO of a Malaysian industrial chemical company on the Malaysian Stock Exchange.
- Lead adviser on a debt restructuring and a Reverse Takeover of a steel company listed on the Malaysian Stock Exchange by a garment and textile manufacturer.
- Lead adviser on a debt restructuring and a Reverse Takeover of a Malaysian conglomerate listed on the Malaysian Stock Exchange by a PRC company engaged in the production and sale of metallurgical coke.
- Lead adviser to a Japanese technology company on the acquisition of a manufacturing facility in Singapore from a large Japanese electronics multinational.
- Lead adviser to a Singapore technology company on the acquisition of a Japanese R&D technology company.
Incubation
Business and Financing Strategy for Natural Resources Project in Indonesia
A private investor had identified a unique opportunity to leverage natural resources in Indonesia, and been granted a development licence by the government. The project required a significant capital investment, and would require external funding. The investor asked Maroon to develop a strategy that would maximise the return on his investment.
Our consultants first analysed the value chain, from the initial sourcing of the raw material, though production, distribution and consumption by the end user. At each stage, they identified the margins, capital investment required plus current / potential competition. They then created financial models used to identify a business strategy that would maximise project value whilst minimising third party equity.
The investor has now secured all rights to the natural resources, is producing on a small scale and building extensive distribution channels, whilst still retaining majority equity control. The project will soon be ready for the main round of funding that takes the operation to full production, at which stage the investor will gain a minority equity stake valued significantly in excess of his initial investment, plus contracts that allow him to exercise operational control.
Advisory
Measuring the true value, and hidden costs, of R&D in Singapore
Measuring the true value, and hidden costs, of R&D in Singapore
The R&D division of a leading global technology company had proposed the development of a new variation of their core product. The Sales team was confident they could sell it, but the Directors wanted to be sure it would be profitable before investing in the project.
Maroon began by analysing the fixed and variable costs of the existing product line to deduce the true economic contribution to the firm. Next, external market factors such as consumer demand, pricing and competitor reaction were thoroughly understood. Our consultants then built a financial model to value the impact of possible scenarios, taking into consideration the capacity of the plant, costs of expansion and sales forecasts.
As a result, our client gained important new insights into the true profitability of the new product as well as previously hard-to-identify critical success factors. Key aspects of the development plan were reassessed and modified before the client went ahead with a successful and profitable launch.
Advisory
Performance Fee Model for a Hedge Fund in Hong Kong
The CFO of a successful hedge fund approached Maroon for assistance in developing their performance fee model. The hedge fund had a unique management contract that required complex calculations to determine both the performance fee itself and the allocation between investors.
Our consultants first worked with the client to clearly define the desired incentives of the fee structure. In preparing the performance fee model, they quickly identified some inconsistencies between the legal agreement and the substance of the management arrangement with investors.
Maroon project-managed a working team that reconciled substance with form, without creating any adverse consequences for manager or investors. Our consultants worked with the client’s lawyers to redraft the legal agreement and built a user-friendly performance fee model that met the client’s initial requirements.
Advisory
Capital Optimisation for a Gemstone Factory in the UAE
A private equity firm had invested in the development a new gemstone facility and asked Maroon assist in the start-up phase by optimising the facility’s operating model.
Our consultants looked at the seasonal demand, product mix, manufacturing capacity, gemstone supply and labour costs involved in the project. Maroon then developed a model to show the relationships and impact of each factor on profitability, cash flow and working capital requirements.
The model showed that the initial labour projections were sub-optimal for the scale of operation and highlighted the importance of inventory policy to cash flow. Our client was then able to implement a significantly more profitable start-up programme, with reduced risk and capital requirements.
