Situation
One of the largest distributors of agri-inputs in West Africa had pursued an aggressive growth strategy and faced liquidity challenges. Its shareholders mandated OCA to conduct a business diagnostic to understand current challenges and to develop and recommend a new financial strategy
Our Process
OCA’s diagnostic quickly and effectively identified opportunities for operational improvement across geographies and business lines including in the company's product portfolio, pricing guidance, fixed costs, inventory management, asset utilization, working capital management and financial structuring.
We then:
- Held a management workshop to affirm the company’s strategic direction and prioritize growth opportunities. From this, a framework was developed to assess current and future operations to prioritize resources by geography and value-chain.
- Developed a three-statement, 5-year financial model to test opportunities and new financing strategies across debt and equity.
Open Capital presented our findings to investors and management at in-country workshops. Our recommendations included opportunities to improve the company's balance through working capital management, debt restructuring, and equity recapitalization.
