Our corporate finance category consists of the following services:
- Financial Modelling
- Mergers & Acquisitions
- Exit Strategies
Maximise returns on your concept.
A good concept has to be profitable and make commercial sense. Our financial model will represent an in-depth financial overview of your concept, make it realistic, responsible and accountable in the telling. Savvy IQ’s financial model consists of six sections, including financial assumptions, revenue, fit-out, P&L, investment requirement and break even. Together they represent the financial health of a concept.
In this modern age, proper and sound financial due-diligence should be implemented before any concept is developed or invested. This brings about a need for financial and business models. The financial models created by Savvy IQ experts consist of six main sections (as shown above) and are also structured for ease of use for hospitality industry workers. Crucial factors of the hospitality industry such as average spend, covers, staff costs and F&B cost are all covered in the financial model we build.
Mergers & Acquisitions
Markets change – that is a given. With the markets continuously changing it can be complex to find the right acquisition or investment targets. However, with the hospitality industry knowledge that Savvy IQ possesses we can supports our clients and investors across the entire transaction life cycle from origination to exit. Our M&A process starts with a focused origination of the suitable acquisition or investment targets. Operational review and feasibility study of the concept follow subsequently as a due diligence of the relevant target. Finally, before the transaction, the possible impact that can arise immediately, as a result, is evaluated, and a necessity of a short and long run management change is also explored.
With over 26 years of experience in the hospitality industry, Savvy IQ will provide investors and clients the necessary expertise to ensure successful results in mergers and acquisition deals in the hospitality sector.
We use our strategic and operational background to support our clients in complex situations that demand more than just corporate finance knowledge. This means our clients are able to tap into our hospitality industry sector expertise and our pool of global expert consultants to ensure optimal results. Savvy IQ ensure investors and clients have access to the best potential or acquisition targets through our identification process. After the identification stage, we implement business due diligence, which involves a valuation of the chosen business and a feasibility study. Savvy IQ will also explore possible impacts that could arise immediately after the acquisition and evaluate if the company’s management structure would need to be amended either on a temporary or permanent basis as a result.
A good business plan should illustrate the desired exit strategy of the concept from the very beginning. However, in reality, due to unforeseen economic circumstances and changes in the market, brands can find themselves in a state that is unable for them to exit as company health is not attractive enough for buyers and investors . Savvy IQ strive to alleviate this for our clients. Some crucial factors that Savvy IQ strive to improve that can add exit value to businesses include guest satisfaction, financial controls, profit optimisation, operation, re-branding and competition. It is critical to add exit value back to businesses as exiting with a value that is well under can undermine the entire life cycle of the business from concept development to opening.
Rising costs, rising competition, negative equity. These are just some of the unforeseen issues that are affecting your concept which is affecting your exit strategy. In reality, it is difficult to have the perfect exit strategy as planned initially years ago. We have a pool of experts specialising in different areas of the hospitality industry such as operations, finance, and marketing who can analyse the relevant sections of your company in detail. Savvy IQ aim to alleviate exit strategy issues for our clients, and strive to add exit value back to businesses for as soon as possible.