Client Overview:

A virtual reality company specializing in interactive content for multiple VR platforms initiated an overhaul of its growth strategy. This included investments across various business units, product development for third-party sponsors, and analyzing potential M&A (LBO) deals with game development companies.

Client Challenge:

To achieve these goals, the company required a comprehensive approach to planning internal growth initiatives and fundraising.

Our Approach:

We provided a deep-dive operational model that assisted management in dynamic scenario planning. Key elements of our approach included:

• Operational Modeling: Developed a detailed target financial model and valuation to assess the viability of M&A deals.
• FP&A Function Recreation: Led the reconstruction of the company’s financial planning and analysis (FP&A) function, focusing on a Long Range Plan, cash needs, and fundraising strategies.
• Cloud-Based Infrastructure Transformation: Currently leading the transformation of the company’s FP&A infrastructure to a cloud-based system.

Mandate Outcome:

Our partnership resulted in significant achievements:

•   Developed a purpose-built Long Range Plan that facilitated a $16.7 million venture capital raise in 2020.
•   Supported negotiations for a venture debt agreement in 2021 to enhance growth runway.
•   Summarized the Long Range Plan for third parties to attract potential private placements.
•   Provided analysis and negotiation support for product and distribution deals.
•   Assessed over 5 M&A targets for acquisition fit, synergies, and negotiation strategies.
•   Led the selection and transformation process for establishing cloud-based FP&A infrastructure.

Through our strategic support, the company effectively redefined its growth initiatives and positioned itself for long-term success.