Assessing Market Dynamics and Positioning for Ultimate Liquidity

Download

Company profile at time of engagement:

Multi-channel commerce software company
Market – Retail sales

Scenario

The Company was attempting to pioneer multi-channel commerce software for retailers. It had spent $80 million over four years and only produced $2 million in revenues. The Board of Directors had decided to sell the Company.

3SIX0 Advisors was called upon by the turnaround CEO to validate the market opportunity and develop go-forward business strategy recommendations for the Board of Directors. In response to the urgent time frame, 3SIX0 Advisors was able to perform a market assessment and develop strategy recommendations within 30 days.

Engagement

The 3SIX0 Advisors process collected valuable information from retailers and identified the Company’s strengths and weaknesses, industry trends, and multi-channel retail pain points. Additionally, the multi-channel commerce opportunity was validated. Through the process, 3SIX0 Advisors was able to identify a number of potential strategic partners.

Deleverables

Through our understanding of the complex market dynamics, we were able to develop a successful turnaround strategy which included the following elements:

Developed and documented a go-forward strategy with solution components, product vision, product beachheads, business model, and sales model
Defined a value proposition and multi-channel commerce and fulfillment solutions leadership positioning
Identified needed partnerships to overcome obstacles and address critical success factors

Initial Investment in 3SIX0 Advisors – $109,863
Strategy implementation resulted in a doubling of revenues and enhanced cash position in year 1
The Company had been presented a term sheet at the time of the engagement for $3.2 million
The Company ultimately sold after implementation of the strategy which resulted in the introduction of multiple buyers for $11.5 million

Return on Initial Investment – (11,500,000 – 3,200,000)/$109,863 = 75.55 X

Company names and references available upon request.