Business need

  • An advisory firm in Europe; one of its arms specialises in selling corporate restructuring services
  • Sector Focus: Healthcare, Industrials and TMT

Business Objectives / Goals

  • Increase sales by proactively identifying firms that may require restructuring / turnaround advisory services in the short term
  • Sector: Healthcare
  • Firm type: Public
  • Geographic focus: US, Canada and Europe

Approach and Methodology

  • Leveraging databases such as Bloomberg, extracted the list of companies in the target sector, along with the companies’ financial details
  • Analysed shortlisted companies on 17 financial parameters such as EBIT margin, EBITDA/CFO, stock price/CFO, interest coverage ratio, ROE, total debt/equity, quick ratio, cash conversion cycle, total debt/(EBITDA – CAPEX), total debt/total assets, CFO/current liabilities, etc.
  • Compared the performance of the target company with its peers
  • Filtered companies based on the aggregate number of distressed areas
  • Triangulated financial analysis with qualitative news triggers (lay-offs, liquidity crunch, debt restructuring, etc.) for forward looking analysis
  • Created investment thesis on prioritised targets for client’s internal evaluation
  • Provided on-going quarterly updates to the client

Business outcomes

  • 25% increase in sales conversion
  • Assistance in creating sales pipeline to the tune of €200mn+
  • 1000+ person hours saved in target identification

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