Global Hospitality and Food Products Company
Strategic Advisory / Capital Raise / JV Creation
Client: Global hospitality management and food products company (“Client”)
The Problem: Client had transformed the business into an international management company, and required strategic advice, deal structuring and negotiations expertise, as well as new equity capital, to exploit an abundance of new business opportunities worldwide.
The Solution: Serve as the Client’s overall strategic advisor and equity capital advisor.
Key Solutions / Deal Highlights
General Strategic Advisory
Equity Capital Raise
New Strategic Business Unit Joint-Venture
The Problem: Client had transformed the business into an international management company, and required strategic advice, deal structuring and negotiations expertise, as well as new equity capital, to exploit an abundance of new business opportunities worldwide.
The Solution: Serve as the Client’s overall strategic advisor and equity capital advisor.
Key Solutions / Deal Highlights
General Strategic Advisory
- Draft and/or review quarterly shareholder communications
- Assist CEO, President and CFO in creation of Board materials; Present to, provide counsel to and judgment on various strategic initiatives to Board of Directors
- Review numerous ongoing deal proposal opportunities for go/no-go decisions; represent management in negotiations on deal terms
- Advise on the creation new business divisions, including structure, legal issues, hiring and compensation/equity structures for senior positions, business plan creation and capital needs and budget issues.
Equity Capital Raise
- Master financial model – combined several static internal model, and created 700 line master financial model showing aggregate of all entities, revenue and expense items; created pro forma projections; constructed unit level profit models for each business opportunity; created new venture modules to track key variables and timing expectations for over 23 existing in-process deals.
- New equity capital – took over the management of existing equity capital raise process from existing merchant bank; redesigned documentation and process; immediately integrated controls and investment banking presence into existing prospective investor group and began to manage the message and information toward finite closing deadlines and mechanics. Successfully circled existing investor group and determined that over 50% of heretofore “lead” interested investors were not a proper fit and/or would not be strategically beneficial from a value-add perspective. Worked with management to reconstruct investor group and move parties to close.
- Board of Directors – coordinated the interview process of prospective board members and managed the process of board construction in conjunction with the forming prospective investor group.
- Documentation – coordinated the legal documentation required, including any specific and separate deals with investor groups, required for closing.
- Equity compensation plan – Advised on the creation of an employee equity compensation/retention stock option plan, including the financial and operational aspects. Created financial valuation model for overall enterprise and the accompanying stock option valuation and pricing mechanics. Worked with accountants to structure overall plan.
- Capitalization table – created detailed capitalization table to be used for ongoing shareholder recordation and management.
New Strategic Business Unit Joint-Venture
- Serve as point man for 4-party, multi-country joint venture creation involving 2 U.S. entities (1 of which has a presence in over 60 countries and 1 of which is a brand/licensing enterprise) and 2 Spanish entities (1 of which is a lower middle market enterprise and 1 of which is a $3bn+ revenue enterprise and the largest in Europe in its class)
- Coordinated creation of business plan, constructed, evaluated and negotiated with prospective new senior level staff, created financial projection model, conducted 100 line unit-level COGS analysis for prospective SKU’s to be sold, advised on business and organization structure
- Represented client in international meetings with local, regional, and national level foreign governmental entities
- Negotiated and structured licensing, marketing service and distribution agreement
- Advised on and coordinated with internal press/public relations teams
- Mediated deal terms, financial terms and engaged in complex structural problem solving amongst parties
- Guided legal teams on structure and process