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| Assessing Market Dynamics and Positioning for Ultimate Liquidity |
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Company profile at time of engagement:
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Multi-channel commerce software company |
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Market – Retail sales |
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The Company was attempting to pioneer multi-channel commerce software for retailers. It had spent $80 million over four years and only produced $2 million in revenues. The Board of Directors had decided to sell the Company. |
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3SIX0 Advisors was called upon by the turnaround CEO to validate the market opportunity and develop go-forward business strategy recommendations for the Board of Directors. In response to the urgent time frame, 3SIX0 Advisors was able to perform a market assessment and develop strategy recommendations within 30 days.
The 3SIX0 Advisors process collected valuable information from retailers and identified the Company’s strengths and weaknesses, industry trends, and multi-channel retail pain points. Additionally, the multi-channel commerce opportunity was validated. Through the process, 3SIX0 Advisors was able to identify a number of potential strategic partners. |
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Through our understanding of the complex market dynamics, we were able to develop a successful turnaround strategy which included the following elements:
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Developed and documented a go-forward strategy with solution components, product vision, product beachheads, business model, and sales model |
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Defined a value proposition and multi-channel commerce and fulfillment solutions leadership positioning |
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Identified needed partnerships to overcome obstacles and address critical success factors |
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Initial Investment in 3SIX0 Advisors - $109,863 |
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Strategy implementation resulted in a doubling of revenues and enhanced cash position in year 1 |
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The Company had been presented a term sheet at the time of the engagement for $3.2 million |
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The Company ultimately sold after implementation of the strategy which resulted in the introduction of multiple buyers for $11.5 million |
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| Return on Initial Investment – (11,500,000 - 3,200,000)/$109,863 = 75.55 X |
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| Company names and references available upon request. |
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