A B2C fintech firm with $30 million in revenue and 30 thousand customers was poised for growth but the current company structure and strategy threatened to limit growth and diminish valuation. Factors inhibiting the company’s growth were identified, which included revenue concentration, company governance, a limiting go-to-market strategy, and misalignment between the board and management team. The company’s largest offer to buy the company came from an existing strategic investor, at a valuation not suitable to the founder.
I was responsible for identifying and executing value creation opportunities to successfully optimize capital spend, uncover additional revenue drivers and ultimately, exit the business.
The VCA uncovered fundamental value creation opportunities in the business (i.e., revenue enhancement, exit optionality). We executed a seven-month growth services engagement that led to a 55 percent jump in company valuation and a project ROI of four thousand percent, seven months later. As a result, the company was able to sell off a legacy business unit (to the same strategic investor that offered to buy the company previously) at a vastly increased, $36 million valuation (from $23.1 million). The company also retained core IP to use in a new company that OB is partnering with the founder on.