Case Example
Developing growth strategy to maximize the valuation by 2023 and aligning sales organization structure to deliver the proposed growth strategy to a leading Indian CRAMS player
Client Challenge
The client, a leading Indian contract research and manufacturing services (CRAMS) player. The client offers contract drug research services to global pharma biotech players for small and large molecules. The client also offers contract manufacturing for NCE and NME to support Phase 1 to 3 clinical trial supplies and commercial supplies. The client has sought UC’s help to develop a growth strategy by recommending optimal mix of existing business verticals to maximize the valuation by 2023. Based on the defined strategy, client also wanted us to develop strategic business plan and propose an aligned organization structure.
Our Approach
● To develop recommendation for business mix, various profitability levers and overall strategy for each Business Verticals, UC adopted the following approach:
- Conducted discussion with the internal stakeholders about the current offering
- Conducted sales and cost data analysis of the client and the competition
- Conducted primary and secondary research to understand the best practices, customer expectations and buying behaviour
● To develop strategic business plan at individual vertical level and at an overall Organization level, UC adopted the following approach:
- Based on internal data analysis, and market intelligence (on pricing, current client’s willingness to award new projects – client farming and new client acquisitions- client hunting) developed best case and base case revenue projections for each business vertical
- Based on the projected revenues, derived operating costs and capex to deliver the base case and best-case revenues
- Prepared proforma financial statements - profit and loss account, balance sheet and cash flow
- Developed high level valuation using market multiple and DCF methods, prepared financial ratio analysis on proforma statements
● To develop an Organization structure of the emerging technology vertical, UC adopted the following approach:
- Assess capabilities required to execute the strategy
- Formulated design principles based on capabilities, management intent and external perspectives
- Conducted gap analysis, defined synergies amongst businesses
- Defined ‘To Be’ organization structure, roles and responsibilities for technology vertical
Our Impact
The following recommendations were proposed:
● Proposed an overall strategic roadmap to achieve the target revenue and valuation
● A comprehensive strategy in terms target clientele for farming and target clientele for hunting, pricing recommendations, new business/ services to be offered and marketing and promotional initiatives
● Strategic business plan - encompassing revenue plan, cost schedule and investment plan
● Realigned organization structure overall corporate structure and sales organization structure