Management of an infrastructure business had developed a business plan together with potential partners in an eight-figure greenfields investment. The Board engaged Temple to conduct an independent review of the plan, judging that such a review would be required in order to gain approval from shareholders.
THE OVERVIEW:
Working on gaining a shared understading for a go or no-go.
WHO
Infrastructure owner seeking diversification into non-regulated investments
WHAT
Independent review of the business plans relating to a greenfields investment.
WHY
The investment is substantial, involving both equipment and real estate, and any recommendation would need to be approved by shareholders.
RECOMMENDATION
Confidential at time of completion
The Board Chairman says that the plan called for significant investment in both equipment and real estate.
“One of our Directors had worked with Temple before, so we knew that they had both the commercial and technical background that the review would require.”
As an entity owned by a consumer trust, consultant’s fees are a contentious issue. The Chairman cited several ways in which Temple actively ensured they received value for money.
- Focus: “They got to the heart of matters really quickly, and didn’t drown the key issues in less important details.”
- Collaboration: “Without compromising their independence, they used our internal resources wherever possible. They really got on the same wavelength with management, and the information flow there was easy and on point. Our managers improved their own issue identification skills as a result.”
- Cost structure: “Temple worked on a fixed price for a fixed scope. We then engaged them on a flexible basis to conduct additional investigations on specific issues highlighted by the preliminary review. They’re not cheap, but we didn’t pay for any work that we didn’t need.”
Temple designed a decision-making and valuation framework tailored specifically to the investment prospect at hand. That framework was then used to facilitate key conversations and formal meetings with the Board.
“The Board gained a shared understanding of exactly what would drive a go or no go decision. The facilitation was superb.”
Chairman