Grow Business Value

 

We help improve the value of your business by connecting customer engagement to management objectives to unlock the potential of the company and increase shareholder value. Our work has led to higher returns on billions of dollars and increased the reward to shareholders. Below are case studies from former clients.

 

INCREASE RETURN ON CAPITAL
And improve financial performance
We improve your return on capital by driving growth, increasing profits, and supporting your investment strategy.

 

  • Engagement: Provided Valuations to a Private Equity Firm for Tech Portfolio Targets

    Situation
    -A private equity firm with an $8 billion portfolio wanted valuations on tech companies for acquisition. The target companies were in social media, online marketing, and web infrastructure.

    Approach
    -We discussed investment strategy, risk appetite, and desired exit strategy with the PE firm. This helped identify what companies would add the greatest value.
    -We reviewed the business strategy, market position, sales and revenue, traction, and management of target companies.
    -We separated winners from the others, and formed a valuation basis and investment outlook for the targets.

    Result
    -We briefed the portfolio manager on the strengths and opportunities for each of the target companies. and gave specific M&A recommendations, including price range and management strategy for the new portfolio entities.

  • Engagement: Made Multichannel Marketing & Merchandising More Nimble

    Situation
    -This 20+ billion dollar client had multiple problems in workflow adversely affecting over 200 merchants, buyers, marketing and production staff, with exorbitant expenses in the millions of dollars.
    -Management wanted to to simplify cumbersome and expensive processes and eliminate vendor costs overruns.

    Approach
    -We worked with the EVP of merchandising and marketing and his direct reports to craft a plan of action to improve both systems and workflow.
    -Our approach was to first truly understand the problems. Second, we framed alternatives that would simplify workflow and reduce errors. Third, we prepared the business case that could be taken to the executive board. This business case included a detailed ROI from implementing our recommendations.

    Result
    -We successfully implemented a highly vetted and structured plan to automate advertising and production processes.
    -This strategy included timeline, benchmarks and best practices to measure progress.
    -Our goal was to ensure low risk and high return, to eliminate the pain points, and reduce vendor expense overruns.
    -Savings exceeded $10 million annually, a 20x savings over project cost.

  • Engagement: Prepared North America Strategy with Consumer Electronics Giant

    Situation
    -One of the top 10 global consumer electronics companies engaged SafeRock to advise on strategy as it sought to transform its business from B2C manufacturer to B2B solution provider.
    -We advised on strategy, M&A, and sector-specific research on enterprise systems, analytics, and internet companies for investment.

    Approach
    -We studied the B2B landscape, identified key acquisition targets, evaluated M&A targets, and prepared outreach to top retailers. This was a comprehensive plan in conjunction with corporate development, business improvement, and strategy teams.
    -Management was briefed on the US retail landscape, with detailed market research on e-commerce and store systems. We identified M&A targets, mapped strategic outlook by sector, and prepared valuation ranges.  

    Result
    -The company shared our plans and findings with the corporate Executive Board of the $60 billion company, to help guide North America strategy, M&A activity, and technology development.
    -We identified opportunities for organic growth, as well as areas for disruptive tech investment including Internet of Things (IoT) and RetailTech. The North America management team continues execution of our recommendations.

ENHANCE COMPANY VALUE
And reward shareholders
We enhance company value with digital transformation, strategic planning, and support for acquisition and spinoff.
 
 
 
  • Engagement: Provided Valuations to a Private Equity Firm for Tech Portfolio Targets

    Situation
    -A private equity firm with an $8 billion portfolio wanted valuations on tech companies for acquisition. The target companies were in social media, online marketing, and web infrastructure.

    Approach
    -We discussed investment strategy, risk appetite, and desired exit strategy with the PE firm. This helped identify what companies would add the greatest value.
    -We reviewed the business strategy, market position, sales and revenue, traction, and management of target companies.
    -We separated winners from the others, and formed a valuation basis and investment outlook for the targets.

    Result
    -We briefed the portfolio manager on the strengths and opportunities for each of the target companies. and gave specific M&A recommendations, including price range and management strategy for the new portfolio entities.

  • Engagement: Made Multichannel Marketing & Merchandising More Nimble

    Situation
    -This 20+ billion dollar client had multiple problems in workflow adversely affecting over 200 merchants, buyers, marketing and production staff, with exorbitant expenses in the millions of dollars.
    -Management wanted to to simplify cumbersome and expensive processes and eliminate vendor costs overruns.

    Approach
    -We worked with the EVP of merchandising and marketing and his direct reports to craft a plan of action to improve both systems and workflow.
    -Our approach was to first truly understand the problems. Second, we framed alternatives that would simplify workflow and reduce errors. Third, we prepared the business case that could be taken to the executive board. This business case included a detailed ROI from implementing our recommendations.

    Result
    -We successfully implemented a highly vetted and structured plan to automate advertising and production processes.
    -This strategy included timeline, benchmarks and best practices to measure progress.
    -Our goal was to ensure low risk and high return, to eliminate the pain points, and reduce vendor expense overruns.
    -Savings exceeded $10 million annually, a 20x savings over project cost.

  • Engagement: Prepared North America Strategy with Consumer Electronics Giant

    Situation
    -One of the top 10 global consumer electronics companies engaged SafeRock to advise on strategy as it sought to transform its business from B2C manufacturer to B2B solution provider.
    -We advised on strategy, M&A, and sector-specific research on enterprise systems, analytics, and internet companies for investment.

    Approach
    -We studied the B2B landscape, identified key acquisition targets, evaluated M&A targets, and prepared outreach to top retailers. This was a comprehensive plan in conjunction with corporate development, business improvement, and strategy teams.
    -Management was briefed on the US retail landscape, with detailed market research on e-commerce and store systems. We identified M&A targets, mapped strategic outlook by sector, and prepared valuation ranges.  

    Result
    -The company shared our plans and findings with the corporate Executive Board of the $60 billion company, to help guide North America strategy, M&A activity, and technology development.
    -We identified opportunities for organic growth, as well as areas for disruptive tech investment including Internet of Things (IoT) and RetailTech. The North America management team continues execution of our recommendations.

IMPROVE BUSINESS OPERATIONS
And make the company more nimble
We make your business more nimble, increase efficiency and workflows, and can co-invest as a partner.
 
 
 
  • Engagement: Improved Multichannel Performance and Sales

    Situation
    -A New York City-based tutorial company serving mostly minority, ELL, and immigrant populations needed strategic advice to improve operations and profits. The company has operated successfully for 12 years providing educational support to thousands of middle-school and high-school students across the five boroughs. 

    Approach
    -We worked with the CEO and Program Directors to review strategy and practice in all operational aspects.
    -All operational areas were reviewed with an ROI focus, with appropriate goal setting and targets.
    -The strategic objectives were to improve sales and outreach to schools and teachers, strengthen management, conduct program and content review, and improve overall operations and profits.

    Result
    -Immediately after our plan was implemented, the company achieved the highest monthly sales in its history.
    -Ongoing, all stakeholders felt informed and always ‘on the same page’ making them team more responsive and aligned.

  • Engagement: Improved Shareholder Value for Educational Content Provider

    Situation
    -A provider of educational material, technology and textbooks needed to control costs and improve efficiency. Executives wanted to cut costs and improve efficiency.
    -The company was preparing to sell itself and wanted to achieve the highest shareholder value possible.

    Approach
    -Our approach was to work with the President and CFO to review the company’s P&L. We engaged with Project Directors to prepare a detailed ROI analysis and prepare a proposal for improving margins.

    Result
    -We were able to ‘near-source’ the project, hire key staff, and successfully complete a fixed-price contract. We delivered 18.4% in savings with EBITDA impact.
    -The company was sold at a significantly higher price than anticipated. The final price was 20% higher than the initial price.

  • Engagement: Conducted P&L Review, Reduced Costs, and Improved Profits

    Situation 
    -A specialty manufacturer needed to get a better handle on internal marketing costs, improve production efficiency, and repurpose existing content to develop new products with greater margins.

    Approach
    -We conducted a P&L review with the President, CFO and VP of Marketing.
    -We then delivered a detailed ROI analysis of product development, marketing, and production.

    Result
    -Our proposed strategy was accepted. Upon approval, we engaged in a three-year transformation project that had zero project overruns and delivered a total cost reduction of 20%.

M&A TRANSACTION SUPPORT
Retailer and brand transactions
We have provided M&A transaction support and shareholder advisory for publicly traded corporations in US and Europe.
 
 
 
  • Project: Teamed up to Increase M&A Transaction Value for Category Killer Retailer

    Situation
    -A $6+ billion publicly-traded retailer engaged us to advise them during the sale of the company to private equity investors. The company had national store footprint and growing online presence. The goal was to help management increase its selling price and reward shareholders.

    Approach
    – Working with the CFO, we reviewed the investor presentations and guided on the suitor meetings and discussion. We reviewed and helped construct the appropriate financial and business presentation, and examined their impact on top-line sales and EBITDA and cash flow.

    Result
    -The company was successfully sold to private equity at a 35% premium to initial market price.
    -This was one of the largest retail M&A transactions of the year.

  • Project: Prepared US Investor Strategy for Executive Team of a Public Company

    Situation
    -A $25+ billion dollar publicly-traded company, one of the top two globally in its sector, wanted to improve its investor profile, increase liquidity, and improve shareholder value.
    -The company has international operations in 15 countries. SafeRock was invited to advise the executive team.

    Approach
    -We entered into a confidential engagement advising the CEO and CFO to lay out a strategy and plan of work. As a member of the extended executive team, we improved the capital markets discussion and developed the investor community message. We discussed investor, mutual fund, hedge fund, and institutional opportunities.

    Result
    -The results were greater investor engagement and a higher market capitalization.
    -SafeRock advised the CEO and CFO.

  • Project: Advised Executive Team of a Public Company in Stock Listing

    Situation
    -A $30+ billion dollar publicly-traded company, one of the top ten globally in its sector, wanted to improve its US investor profile and engagement with shareholders, as well as increase market liquidity and value. The company has international operations in 30 countries.

    Approach
    -Under a confidential engagement, we advised the CEO and the investor team and laid out a strategy including a detailed plan of work. We provided direct, confidential briefings to the CEO, arranged key press interviews, and reviewed investment presentations.

    Result
    -The results were evident in greater investor engagement and higher market valuation.
    -SafeRock advised the CEO and executive team.
    -We improved the message for investors and increased valuation.

M&A TRANSACTION SUPPORT
Tech and internet company valuations
SafeRock identified targets for acquisition and accretive growth for public and private companies. Targets ranged from multi-billion dollar companies to new tech startups.
 
 
 
  • Project: Provided Valuations to a Private Equity Firm for Tech Portfolio Targets

    Situation
    -A private equity firm with an $8 billion portfolio wanted valuations on tech companies for acquisition. The target companies were in social media, online marketing, and web infrastructure.

    Approach
    -We discussed investment strategy, risk appetite, and desired exit strategy with the PE firm. This helped identify what companies would add the greatest value.
    -We reviewed the business strategy, market position, sales and revenue, traction, and management of target companies.
    -We separated winners from the others, and formed a valuation basis and investment outlook for the targets.

    Result
    -We briefed the portfolio manager on the strengths and opportunities for each of the target companies. and gave specific M&A recommendations, including price range and management strategy for the new portfolio entities.

  • Project: Advised Corporate VC on Start-up Investments

    Situation
    -A global consumer products company wanted guidance for its corporate venture fund and engaged SafeRock to engage with new technology and retailers.

    Approach
    -The first goal was to understand the risk tolerance that the company board could take on, and do comparative analysis on competitors’ corporate VC investments. With this in hand, we discussed the core strengths of the client and developed how to operate the CVC. This included an advisory board, process for running the fund, and filtering initial investments.

    Result
    -The company launched a Silicon Valley research center. Following our guidance, they developed outreach for industry executives, technology, and partnerships.

PE PORTFOLIO COMPANY PROJECTS
Strategy improvement projects for portfolio companies:

  • Established competitive market strategy for big box, discount mass merchant, and specialty retail
  • Created Global Workflow for omni-channel retailers in US and Europe
  • Improved P&L with price segmented Markets 
  • Linked Merchandising & Marketing and reduced time to market

 

  • Project: Improved Customer Journey and Top-line Sales

    Situation
    -A $500 million chain of 40 regional supercenters had ineffective ad performance. They needed to improve lagging ad sales and store traffic, and reduce out-of-stocks. In addition, vendor funds were not efficiently managed, with millions of dollars being lost each year.

    Approach
    -Our approach was to work in a team across merchandising, advertising, and vendor fund management groups. We measured ad lift by item, volume and profit; and estimated square-inch returns. This created an analytics-based process for item selection.

    Result
    -Identified ‘cherry-pickers’ and capitalized on this to draw shoppers to stores.
    -Optimized ad space allocation.
    -Recovered millions in ‘leaky’ vendor funds.
    -Successfully delivered analytics-driven ad item selection for top items.
    -We increased vendor fund use by over 10% for over $20 million. The new system automates the image management, ad pricing, and multichannel marketing.

  • Project: Guided Executive Team of a Public Company to Higher Performance

    Situation
    -The Executive Team of a $2 billion company engaged SafeRock to help in developing high-performance and alignment for the top officers including the CEO, COO, and CFO. Executive management wanted to improve meetings, performance, accountability, and team responsiveness.

    Approach
    -In a highly confidential setting, we brought the team together and went through the team-building process. This involved individual and group surveys, 360 evaluation, Lencioni model, comparison with high-performance teams. Guidelines were developed for continued improvement and action.

    Result
    -The team developed greater unity and alignment, and this was reflected in the Executive Team going forward.

  • Project: Conducted P&L Review, Reduced Costs, and Improved Profits

    Situation
    -A specialty manufacturer needed to get a better handle on internal marketing costs, improve production efficiency, and repurpose existing content to develop new products with greater margins.

    Approach
    -We conducted a P&L review with the President, CFO and VP of Marketing.
    -We then delivered a detailed ROI analysis of product development, marketing, and production.

    Result
    -Our proposed strategy was accepted. Upon approval, we engaged in a three-year transformation project that had zero project overruns and delivered a total cost reduction of 20%.

PRIVATE EQUITY PORTFOLIO COMPANY PROJECTS
Analytics projects completed for portfolio companies:

  • Completed SKU Rationalization project to reduce SKU count by 30%
  • Reduced Promotional stock-outs by 40%
  • Reduced time to market from 60 days to 17 days for 200 million catalogs
  • Implemented Last Minute Pricing and versioning for 400+ markets
  • Multi-channel, multi-language Asset Management (copy, image, price)
  • Project: Implemented ‘Last Minute Pricing’ and Versioning to Grow Market Share

    Situation
    -A billion dollar chain of superstores needed to manage the extreme demands of hundreds of markets and stores where customers wanted the best value offer possible each week.

    Approach
    -Our approach was to implement a database solution for Ad Management, promotion pricing and versioning. The automated versioning would help them reach the goal of ‘extreme last minute pricing’ on Saturday for insertion in Sunday ROP ads.

    Result
    -This “Last Minute Pricing” solution delivers prices at the very last minute possible before the ad is sent for printing. Our client took this to the extreme, practicing one of the most advanced methods. They versioned ROP ads for over 500 markets and delivered to newspapers on Saturday for insertion in the Sunday newspaper.

  • Project: Improved Customer Segmentation and Reduced Marketing Costs

    Situation
    -A specialty toy retailer needed a system to streamline version management and last minute pricing. They needed to revise the department’s workflow procedures, streamline the versioning process, cut out as many manual steps as possible, and reduce time to market.

    Approach
    -Our approach was to install a database linked to the client’s mainframe system for Event Information. The company was able to open two new divisions and incorporate a billion-dollar acquisition with the same marketing headcount.

    Result
    -Advertising was now able to successfully deliver prices to Production the same day ads are released to the printer for print runs of up to 20 million copies. As a result, the production cycle was cut in half.
    -Automated versioning eliminated pricing and product information errors. 100% ROI was achieved within six months.

  • Project: Improved Inventory Levels and Reduced Out of Stock for Giant Retailer

    Situation
    -An international retailer with presence in North America and Europe wanted greater streamlining, reduced out-of-stock, better inventory forecasts, and promotional efficiency.

    Approach
    -Our approach was to provide the supply chain with promotional information in a timely and accurate basis, including all change management and promotional sales forecasts.

    Result
    -Our system successfully decreased out-of-stock at this multi-billion dollar retailer, by 6% with EBITDA impact.