Leading Event and Conference management company
Establish and execute a revenue optimization model for a major event organizer
Saudi Arabia, Qatar, Jordan
A leading event and conference management company, headquartered in Jordan with operations across Saudi Arabia and Qatar, was facing challenges in understanding its financial health and accurately valuing its business. As the company expanded its operations in these key regions, it became increasingly important to develop a robust financial model that could reflect its diverse operations, support project pricing, and provide a clear picture of its overall worth.
Given the complexity of managing high-profile events for both government and private sector clients, the company sought to create a financial model that would not only help in assessing its valuation but also in setting appropriate pricing strategies for its projects.
Business Keep was engaged to develop a comprehensive financial model that would offer the company a detailed understanding of its financial operations and valuation, while also aiding in the pricing of its projects across Jordan, Saudi Arabia, and Qatar.
We began by gathering extensive financial data from the company’s branches in each region, focusing on revenues, operational costs, assets, and liabilities. Given the company’s headquarters in Jordan, special attention was given to aligning the financial strategies across all regions with the company’s overall goals. Our approach involved:
1. Data Collection and Normalization:
We meticulously collected and standardized financial data from each branch, ensuring consistency across the board. This included detailed revenue streams from large-scale government events in Saudi Arabia, high-profile private sector conferences in Qatar, and steady mid-sized events in Jordan.
2. Segmentation Analysis:
The financial data was analyzed by region to identify key revenue drivers and cost structures unique to each market. This analysis provided a granular view of the company’s operations, revealing opportunities for cost optimization and revenue enhancement.
3. Valuation Methodology:
We applied a combination of Discounted Cash Flow (DCF) analysis and Comparable Company Analysis (CCA) to estimate the company’s overall value. The final valuation of the company was determined to be $8M, providing a realistic foundation for strategic planning and future investment decisions.
4. Project Pricing:
In addition to the valuation, we assisted the company in refining their project pricing strategies. By analyzing the cost structures and revenue potential of different types of events in each region, we helped the company establish competitive yet profitable pricing models that accounted for regional market conditions and client expectations.
5. Scenario Planning:
Recognizing the dynamic nature of the event management industry, we integrated scenario planning into the financial model. This involved creating various scenarios—best-case, worst-case, and most-likely—to assess the potential impact of different market conditions on the company’s financial outlook and project profitability.
The resulting financial model provided the company with a comprehensive understanding of its financial health, valuation, and pricing strategies. Key outcomes included:
1. Accurate Valuation:
The financial model revealed that the company’s overall valuation was $8M, giving the management team a solid foundation for strategic planning and future investment decisions.
2. Operational Insights:
The analysis highlighted that government contracts in Saudi Arabia accounted for a significant portion of revenue, while private sector engagements in Qatar offered the highest profit margins. Operations in Jordan, while smaller in scale, provided a stable income stream and served as the central hub for the company’s strategic planning.
3. Improved Project Pricing:
By refining their project pricing strategies, the company was able to set more competitive and profitable pricing models, leading to increased client satisfaction and improved profitability across all regions.
4. Informed Decision-Making:
The scenario planning feature equipped the company with the ability to navigate market uncertainties with greater confidence, ensuring they were well-prepared for both opportunities and potential risks.
Facing the challenge of managing complex financial data across multiple regions, Business Keep’s team applied meticulous attention to detail and deep expertise in regional markets. Our independent and thorough approach ensured that the financial model was both accurate and actionable, empowering the company to make informed decisions that would drive its future growth and success.
