We assessed investment attractiveness and developed a business concept of a new business unit in a logistics park
The client is a developer and a management company of the large-scale logistics park in Central Region of Russian Federation. The shareholders (private equity fund) and the management of the logistics park were interested in (1) an assessment of feasibility of establishing new business unit to increase the attractiveness and to develop a strong platform for long term cooperation between the logistics park and large retail chains; (2) a more detailed estimation of the requirements, key success factors and KPI’s for the new business unit; (3) the development of a concept and a financial model for the new business unit.
At the first stage MCG team has conducted in-depth interviews with three types of respondents’ categories:
(1) Interviews with representatives of the main retail chains in Moscow region (identification of the main trends and problems of retail chains, estimation of the current and forecasted demand and requirements for the new business unit services)
(2) Interviews with representatives of European companies, those have already established and operated services similar to the client’s new business unit (identification of the best practices in business models, operation process, services pricing and positioning)
(3) Interviews with representatives of equipment suppliers for setting up a new business unit (analysis and comparison of equipment technical requirements, service operational costs, investment scopes and payback periods)
After that, based on collected information and conducted market analysis, MCG team has developed a business concept of the new business unit (including selection of technology and potential suppliers, description of the target business process and key risks) and a financial model (including NPV, IRR, required investments, payback period, revenue, operational costs, gross margin, service price levels)
Project results: (1) the client has approved the scenario of proposed business concept for establishing the new business unit at the board level; (2) the client initiated the preliminary negotiations with several potential customers of the new services (the customers have been identified by MCG team during the project), actively utilizing the investment memorandum and financial model developed by the MCG team.