PI Deals

Question 1

Bravas Deal under exclusivity

Answer 1

2. Bravas (live deal under exclusivity) – Bravas Group is a combination of 15 high quality custom integrators that design, engineer, program, and install intelligent infrastructure-grade home systems for highly affluent clients (audio/video systems, security, smart home etc) Opportunity of consolidation in a fragmented market. Help of consultancy company with insider information. Less cyclical market, benefits from nation-wide brand, cost cutting, repeat sales from customers with several homes.
    Thesis: Favorable valuation to acquire largest player in luxury home custom integrator market
    Opportunity to consolidate market with limited competition
    Significant pipeline of add-ons in both new and existing markets
    20+ identified platform acquisitions in major new markets such as Chicago, Los Angeles, Detroit, Denver, Seattle and Boston
    14 identified smaller tuck-in acquisitions within existing markets
    Preliminary model with acquisition of 10 additional platforms and 15 tuck-ins expected to achieve 30%+ IRR
    Management believes there to be a much larger opportunity of ~25 platforms and ~35 tuck-ins
    Ability to implement best practices, improve operations and achieve multiple arbitrage on future acquisitions
    Strong team, ready to move forward on acquisition strategy
    Initial discussions with management and industry experts suggest lower volatility in high end segment during a recession compared to low to mid price segment

What did I do?
• Created IC Memo (analysis of potential acquisition strategy, company analysis/products, synergies analysis, nation-wide brand analysis)
• Cyclicality of the business analysis (particularly high-end housing market is less volatile than other segments and rebounds quicker after a downturn)
• Worked closely with associate who was working on the model for acquisition

Question 2

Podium Publishing

Answer 2

Closed FIRST DAY I STARTED
Audio books publishing house for independent authors. Low asset base, large margins, a lot of improvement opportunities, low competitive barriers (audio book production cost is ~5000 USD)
• Helped with implementation of 100 day plan working closely with new COO of the company (PE fund VP)
• Author Identification System – previously owner was choosing authors based on his gut sense. Outlined the automated author identification system (web tool) based on kindle book data scrapped from Amazon. Defined predictive data points such as sales, # of reviews, author’s rank, narrator). Found and worked with outsourcer who 1. Proved correlations between different data points and future sales of audio book, and 2. Built web based tool that automatically highlighted potential authors once they self-published their books on Amazon.
• Worked on developing 100 days strategy and creating materials for the first board meeting of the company
• Audible contract analysis
• Assessing tuck-in acquisition opportunities – Saturn Awards. Award for Sci-fI genre movies. Were thinking of sponsoring new owner to continue the show and promote audio books business this way.

Question 3

5. Futura (live deal under exclusivity)

Answer 3

Checks whether a house is clean or collateralized or can be involved in any claim during the house purchase.
• Helped with research & put excel together