FRP’s Financial Advisory team supported a mid-market PE investor by developing a financial model to assess a potential investment in Cube, enabling clear evaluation of key drivers, risks and growth scenarios to support a fast, confident investment decision.
Case Study
FRP supports mid-market PE company on investment in Cube
FRP’s Financial Advisory team delivers a detailed financial model to support a potential investment in global consultancy business.
Background
A leading mid-market Private equity (PE) company were looking to invest in Cube, a global strategic advisory consultancy business, in a transaction valued at approximately £250m Enterprise Value. There was an existing operating model but the level of detail was not sufficient to support their investment appraisal.
It was a part of a competitive process so the model was developed on a truncated timeline to allowed the PE company to transact quickly.
Action
FRP’s Financial Advisory team prepared a financial model to forecast the performance under a range of investment scenarios.
The model was built up from the projected number to clearly outline impact of client wins, retention and churn – key drivers to future performance of the business.
The outputs set out the KPIs that underpinned the investment case clearly and concisely allowing the investment team to understand the key risks and growth drivers to aid their investment decision.
Outcome
The deal team were able to utilise the model to gain confidence in the company and its future prospects.
This enabled them to present a compelling case to investment committee and to make an offer for the company. They were able to do this quickly demonstrating conviction in the opportunity.
Key services
Case Study
FRP Real Estate Advisory secures £85m high street funding for South West hotel portfolio
The facility comprises a £75m bilateral loan on a five-year commitment, refinancing the incumbent lender, together with a further £10m committed accordion to be released as the two newly refurbished hotels open and stabilise.
Case Study
FRP Real Estate Advisory completes 80% LTPP Notting Hill auction acquisition
The facility was structured at 80% Loan to Purchase Price (LTPP) on a 12-month bridge to secure a change-of-use with the planning.
Case Study
FRP Real Estate Advisory arranges £1.5m across three deals for investors moving into development
The deals span land bridging, a secured revolving credit facility and development-linked bridging finance.
Case Study
FRP supports Seaforth Holdings on a second acquisition.
FRP’s Financial Advisory team support Seaforth Holdings with financial and tax due diligence on its most recent acquisition of Indestructible Paint.
Case Study
FRP Real Estate Advisory structures £7.9m acquisition bridging loan for Mayfair mixed-use asset
A prime brown-to-green acquisition opportunity made possible through deep lender relationships and expert execution