Prove the equity story
Use analytics during the deal execution down to transactional data to demonstrate underlying growth drivers.
The challenge
The company has a wide range of products categories and a large active customer base, with the majority of revenues being spot. As part of the process, we were engaged to address key business issues:
- Analysis of the quality of the product portfolio using a dynamic and interactive tool to deep dive into detailed characteristics
- Analysis of the management’s ability to increase prices over a long-time period and assessment of key growth levers (volume-driven, price-driven)
- Demonstrate the recurrence of customers highlighting repeat behaviors and orders
The challenges were to form a robust view on these key questions, limiting bias in the analysis (such as mix effects, seasonal patterns, duration of services provided which impact prices, etc…), and using the most granular data available in multiple database, but keeping in mind key issues to address.
The outcome
Having discussed key characteristics and business issues with management, we then identified all relevant database (either financial or commercial) which we extracted and transformed to address these issues.
We built a robust set of data based on over 1 million points, which formed the single source that we analyzed combining a top-down approach and a deep-dive into detailed performances at a granular level.
We were able to demonstrate a key assertion of the equity story, being management’s ability to efficiently monitor its pricing policy and price increases in a tough competition environment.
We delivered robust analyses on customers repeat orders, giving confidence on the sustainability of revenue growth achieved and forecast to be achieved.
