A Chilean fund with a successful track record in the entertainment industry sought to raise, analyze, and prioritize different investment opportunities to grow its business. Through an exhaustive prioritization exercise, which considered historical performance, trends, and investment criteria, Matrix Consulting defined the three most attractive businesses for the conglomerate.
Context
A renowned entertainment company in Chile had seen its profitability shrink in recent years, triggering the need to find investment opportunities to ensure its business growth.
The board needed to identify, evaluate, and select attractive industries within Chile to provide investment options, related either to its core business or considered “out of the box.” Based on this, it would look for precise opportunities and specific entry and business models to fit the company’s capabilities and needs.
Opportunities detected
From the analysis of current trends, it was identified that the events industry was going through a transition towards hybrid and virtual solutions, which represented an interesting opportunity for differentiation.
The company had to find other assets to manage and operate. However, the limited supply and operating partners posed a risk to the obtainment of these assets.
Aligned with the opportunities presented to the client, we had to implement a methodology for selecting and prioritizing opportunities, together with an assessment of the internal capacities needed to conduct this type of process.
Proposed actions
Through the methodology implemented by Matrix Consulting, the historical information, trends, and projections of various industries were researched to understand their future appeal.
Based on the information collected, the industries that presented good historical information and attractive projections, and which fit the client’s investment criteria, were prioritized and classified as attractive industries for further assessment.
Subsequently, attractive businesses were defined and delved into with “teaser” type cards to clarify the business model.
Finally, the business opportunities were prioritized, seeking the highest return and greatest feasibility.
Impact
Matrix Consulting stood beside the company throughout the process, from the survey and prioritization of industries, which included approaching investment banks and property brokers to learn about real opportunities, to the final prioritization of opportunities.
A roadmap was delivered, detailing the internal enablers, negotiation criteria, and the required deadlines.
