Full fledged turnaround exercise for a agriculture company in Egypt
Situation
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Company facing challenges putting pressure on export prices; oversupply, commodity aspect, competition behavior, increasing costs, limited client base
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Inability to service obligation and finance targeted land size, and or quality land
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An in-depth assessment of the global export market, building perspectives on market trends, competition in niche market, demand, pricing directions, new dynamics, with focus on large consuming and high growth countries / regions
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Developed full scale growth strategy covering review of business / funding model
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A phased market entry strategy commencing with focus on niche EU markets; moving to opening virgin markets in East Europe; followed by moving to the middle market sector
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A sourcing strategy that mirrors the strategy, with focus on Egypt as a main source, then moving gradually to cultivation in Sudan to care for middle end varieties
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Funding strategy that involved innovative financial products to fund cultivation cycle
Contribution
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Road show to expand client base in EU countries leverage company heritage
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Structuring, negotiation, planning and securing IFI funding for a JV - Screening Facility with a major manufacturer in Sudan
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Designed a structured finance product to fund cultivation cycle of 4,000:
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A vehicle that sources investors funding, with returns linked to yield
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The financial product was offered for investors in EGP and EUR
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A full transaction was executed; structuring, marketing, raising USD 10 Mn
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Monitoring mechanism for land performance, expenditure vs. budget, payment installments, documentation, etc
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Investors generated an IRR of 35% on EGP and 15% on EUR
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