Revealing in-depth drivers of business performance
Create a richer understanding of the drivers of revenue growth and the effects of management’s strategic plan to support the equity story in preparation for a sale process.
The challenge
Our client, a Private Equity backed leader in the hospitality industry, required that our work, as part of our Vendor Due Diligence process, provided a clear picture of the financial performance and business drivers of its portfolio of hotels, comprising [X] hotels spread across [Y] geographies.
The client wanted to provide bidders with clarity on the quality of its portfolio, the different business drivers of revenue growth in each geography and customer behavioral patterns in order to maximize the value of the deal.
Additionally, the client wanted the Financial Due Diligence to clearly illustrate and quantify the effects of its strategic plan, and the benefits associated with the significant capex plan to progressively refurbish the portfolio of hotels, as well as actions initiated to accelerate individual hotel performance.
Limited availability of internal resources and strong time constraints impaired management’s ability to dedicate the resources necessary to perform these analyses before the sale process was initiated.
The outcome
We applied advanced data processing, and blending techniques to create and deliver a powerful deal dataset comprising daily revenue and associated performance indicators data for each hotel allowing dynamic and in-depth analyses providing accurate and new insight to the business drivers and performance.
Based on our analyses, Management was able to deep dive into a robust and consistent financial information dataset which backed the strong results achieved by their strategy and its long term effects on revenue growth (volume and price).
Our client was better prepared for investors’ questions and requests at critical stages of the deal and able to maximize the value of the transaction.
