INDUSTRY: Vineyards & Wineries
CLIENT: Recognized South Australian Winery
BIO SNAPSHOT: Family established 1920’s Vineyard holding well-known brands; supplying to the local market and exporting to the national and international market.
SCOPE OF PROJECT: Conducting a Business Valuation to determine the fair value of business operations in preparation and assistance for the planning of succession to the various family groups involved.
ELEMENTS & OUTCOME: The professionals managing a project involving the dynamics of a century old family business, must possess the expertise, technical knowledge and trust of those that have called upon them to assist in such a matter. Our team at Vlassis & Co managed this process while unearthing vital pieces of financial data which resulted in accurate conclusions for the client and in turn facilitated in the delineation of ‘who gets what?’
TECHNICAL FINDINGS: What this report determined was a number of factors; two in particular:
- Fair Value of the business based on a future maintainable profits method
- It exposed the over capitalisation of various asset groups which should have been managed more effectively, with the capital invested in areas that would produce a higher return.
OVER CAPITALISATION EXPLAINED: For this illustration imagine your business invests $10 million in land, buildings and machinery (fixed assets). It should at the very least produce earnings with a much higher yield than a yield earned in bank deposits or the general share market dividend yield.
Largest Australian Distributor of a Consumable Product.
INDUSTRY: Manufacturing & Distribution
CLIENT: Largest Australian Distributor of a Consumable Product.
SCOPE OF PROJECT: Our client was approached by one of the biggest consumable product organizations in the world (Public Listed Company) to acquire exclusive distribution rights in Australia. This possible venture had existing revenues of $60 million pa and required financial and business modelling as well as risk assessment analysis.
ELEMENTS: With a project of this magnitude and standing requires strategic business thinking and financial acumen. Our team at Vlassis & co worked synergistically with our client to determine the proposed business model, value proposition and channels to conclude with the right business decision. We also reported and analysed analytics of existing competitors, projections of financials and determined financing requirements associated with initial costs of inventory, warehousing and overheads.
This project required and involved interstate travel and site visitation to assess existing and expanded warehouse operations. This was incorporated in our financial modelling and aided the analysis of cash flow, profit margin projections and (legal) re-structuring examination. This high level of reporting allowed our client to make an informed and confident decision.
CLIENT: Combined Group of Professionals and Entrepreneurs
BIO SNAPSHOT: Recently established start up aimed to tackle Australia, based on a global market estimated to be worth $33 billion by 2020.
SCOPE OF PROJECT: Provide a market research report on the current industry as well as business model design and direction in commercialisation.
ELEMENTS: The nature of this project permitted that Vlassis & Co were as much part of this venture as the client group. From chairing and facilitating strategy meetings to setting benchmarks and establishing tasks and progression points for the group, it ensured our clients received the optimal planning & know how of execution to pursue this venture.
Conducting the industry report allowed us to establish key pieces of information in the formation and progression of the next stage of planning. We discovered key insights into barriers to entry, local and global competitiveness, source markets, regulatory and administration requirements, the supply chain and importantly what are the drivers that make this industry thrive.
From determining the above, in particular the drivers of the industry we were able to create unique and tailored value propositions and business models that could be tested. We took a fluid approach by prototyping ideas – this is the process of building quick, cheap and rough study models. From doing this we were able to learn about the desirability, feasibility and viability of alternative solutions. This attitude of planning and execution ensured our clients did not waste time, money and resources on that ‘one’ idea. By seeking alternatives and testing preconceived notions we could either annotate or pivot into more productive areas.
WHY OUR SERVICE MATTERS:
We guide our clients to focus on what matters and identify the important drivers for commercialisation in the most cost effective and results centric manner.
Established Private Client (VCO Integrated Pathway)
CLIENT: Established Private Client (VCO Integrated Pathway)
BIO SNAPSHOT: Founders of a major manufacturing group with a high level of national business activity.
SCOPE OF PROJECT: Assist with Estate Planning issues associated with each entity connected with the clients; assess impact of Estate Planning options.
ELEMENTS & OUTCOME: The clients are involved in various entities directly and indirectly through trusts and companies. The assets of these entities are considered extremely valuable and produce high levels of income flowing ultimately to various family groups.
As part of the Estate Planning options we had to consider various issues including;
- Who controls the Trusts?
- Who has the power to remove and appoint trustees?
- What are the powers of an appointor – who do you choose to be the appointor?
- Which assets or “control of assets” do the clients identify to leave to their respective family in the event of deaths?
All of the technical discussions and legal considerations were conducted during various brainstorming and collaborative meetings with the clients lawyer.