CASE STUDY
Building Credibility
Industry
— Leisure and Hospitality
— Venue Management
Duration
— 5 months
Team
— 1 Director
— 1 Vice President
Services
— Sell Side Readiness
— FP&A Support
Building Credibility & Justifying Multiples
A private equity-backed venue management company, was preparing for a sale, but its finance team lacked the expertise to handle the complex due diligence process. The CFO and private equity sponsor found themselves deeply involved in basic financial analysis, which slowed progress. They engaged our team to manage the finance function, prepare critical analysis, and provide data-backed support to justify the high EBITDA multiple sought for the transaction.
The Execution
We worked closely with internal teams to build structured analyses that addressed key buyer concerns and supported the investment thesis:
Contract Leverage & Negotiation Analysis – Buyers questioned whether the company’s contracts consistently secured favorable terms. We audited agreements, analyzed key performance indicators (KPIs), and built models incorporating dozens of agreements and amendments. This provided a contract-level financial model that demonstrated the strength of terms over time and enabled scenario analysis for future negotiations. The company ultimately adopted our contract model for ongoing use in valuation and deal structuring.
Cap Ex ROI & Lease Obligations Analysis – Many new venue agreements required capital commitments, and management claimed high returns but lacked supporting data. We developed a detailed Cap Ex ROI model that isolated the impact of investment decisions from broader market cycles, allowing for a clear long-term return assessment.
Operational Improvement Benchmarking – The company marketed itself on its ability to enhance venue performance after taking over operations. To validate this claim, we benchmarked KPIs and financial performance for venues before and after the company assumed management, providing quantifiable proof of operational improvements.
The Results
The firm successfully completed its sale with a well-supported investment thesis. Our involvement allowed the CFO and sponsor to focus on strategic aspects of the transaction while we managed finance and operational teams. The company adopted our contract modeling tools for future negotiations, enabling long-term value creation post-transaction.
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