E-Commerce Consumer Products Company Doubles Revenue in One Year from $24MM to $50MM and Exits to Largest Customer
During the boom on E-Commerce, Marion Street Capital helped an online retailer of consumer electronic products double revenue in one year by employing financial control techniques, implementing tax strategies, designing data analytics processes, drafting a detailed business plan, building the company’s advisory board, and negotiating terms with the acquirer.
The Most Pressing Challenge
ConsumerProductsCo hired Marion Street Capital to identify inefficiencies in company operations, discover growth levers that would help the company accelerate revenue growth, and source external capital to provide the company access to inventory.
How Marion Street Capital Solved the Most Pressing Challenge
Marion Street Capital deployed its FinOps and RevOps solutions to help ConsumerProductsCo pinpoint inefficiencies to double revenue, and exit to its largest customer.
FinOps
Marion Street Capital created a detailed and actionable monthly financial model for three distinct growth cases to identify inefficiencies and areas for financial improvement, set parameters, and advise the company on optimal capital allocation. Marion Street Capital helped ConsumerProductsCo secure $3.5MM in trade financingAs part of its strategy, Marion Street Capital recommended an advantageous tax strategy for the company.
RevOps
Marion Street Capital drafted a detailed business plan to recommend growth opportunities. The business plan included competitor research, pricing strategies, competitive advantages, SWOT analysis, TAM/SAM/SOM analysis, and an outline for a unique growth strategy. The report was driven by consumer analysis that took into consideration spending habits and trends within sales channels for future initiatives.
Marion Street Capital facilitated an exit to ConsumerProductsCo’s larger customers. Marion Street Capital worked with the acquirers to negotiate terms to ensure favorable deal terms for ConsumerProductsCo, identified sources of capital for funding the acquisition, proposed a payment structure through a combination of capital securities, and recommended the acquirer on paths to consolidate operations and employ cost savings strategies.