The Challenge
A major independent state agency wanted to explore selling off valuable, yet unprofitable assets and refocus its business toward its mission-driven core which is to offer loan grants and guaranty.
However, decoupling the technology to determine assets was as much a technical challenge as it was a financial challenge. As a result, offering scenarios that included keeping technology, selling technology or just letting it sunset were on the table. The agency required an external opinion to ascertain which direction made the most sense not only for the business, but also for its stakeholders.
Project Description
Further Advisory was engaged to perform an asset analysis to attribute values to owned and leased technology, to customer base and to associated employees with the knowledge to operate technologies. The goal was to identify salable assets and make them palatable to potential buyers.
Outcomes Delivered
- “End State” Scenarios Development. Based on desired outcome to exit a business, developed several “End State” hypotheses leading to a range of actions to be taken by both finance and technology, ultimately leading to profitability over varying time frames (short-, medium- and long-term).
- Asset analysis. Performed a robust analytical review and conducted an assets and asset groups inventory to determine only-value and group-value to potential buyers within and adjacent to the industry.
- Build acquirer profiles and personas. Used the “End State” hypotheses and their asset groupings to identify potential acquirer profiles and their appetites for each scenario leading to a targeted list of buyers to propose to bankers.
- GTM Strategy. Designed Go-to-Market strategy and considerations for parts of the business to be sold and parts of the business to stay behind. Sell-side due diligence. Collaborated and partnered with working teams to highlight strengths, address weaknesses and prepare for potential buyer questions by fortifying seller-side story and optimize for largest value possible.
- Portfolio Valuation. Determined estimated market values for technology, business (people), and customer and loan portfolio based on End State hypotheses and buyer types.
