Business case
Our client, a major player in the French retail sector, was contemplating the disposal of an online shoe retailer, headquartered in France with a European presence. The company faced a significant decline in its top line during the Covid crisis and was implementing a new strategy focusing on higher margin clients. The turnaround forecast by the company was challenging, and our client asked us to assess the impacts of the main measures that were planned to restore profitability.
On top of our financial analysis of past and future performance, we provided specific strategic insights on market development. Thanks to the combination of our financial and strategic expertise, we were able to assess the top-line assumptions and provide visibility on the quality of the company’s main asset: its customer base. This was a major factor in reassuring the ultimate acquirer of the company on the potential for future profitability.
We performed vendor due diligence and assisted our client throughout the disposal process. We analysed past performance and normalised the impacts of the Covid crisis. We performed a review of the Company’s main assets and liabilities with a specific focus on the quality of the client base (analysis of client acquisition, retention, loyalty, etc.). We also performed a review of the business plan prepared by the company’s management and assessed the business impact of the turnaround actions that had been taken (e.g. premiumisation, offer diversification and marketing actions) as well as their impacts on customer behaviour.