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Mentor Capital & Business Advisory© | All Rights Reserved 2019

CLIENT CASE -
REAL ESTATE DEVELOPER

Shareholders Nationality: German  Country of Operation: Romania

Case Study background:

A group of foreign investors (Germany) decided to develop a special resort in one of the Romania’s regions. 
The initiative started more than 10 years ago, but there was no progress in the development.

The concept creation of the resort was not supported by a professional feasibility study, or a sufficient market study to offer a correct validation for the business plan and the required ROI.

 

The group decided to invest in the project, even though the sufficient information was lacking, and following that during 10 years of continuous investment no ROI or progress was done. 
The project has reached its final point, when the investors needed to decide whether they stop and loose the complete investment or heading for a change, however, the relationship and trust between them were also deteriorating and was at the point of decision - giving up on the investment.
 

Up to this stage, the project was managed by one of the shareholders that was doing his best but did not have the required background, portfolio or skills to plan and execute such a complex project

The Challenges:

  1. No valid project concept

  2. No business plan or marketing plan prepared for the project.

  3. No financial plan and ROI plan

  4. No professional management to lead the project.

  5. Project is stuck for many years.

 

Goals:

  1. Goal 1 - Analyze and determine if the project is a feasible one – Recheck the concept

  2. Goal 2 - Reducing their required investment and maximizing its potential

  3. Goal 3 - Creating a sales / marketing plan, based on the concept developed that will be suitable for the operating market

  4. Goal 4 - Developing the project in a professional level which will secure the investment and gain future profit.

  5. Goal 5 – being able to restart the development and continue the project.

 

Results:

  1. A complete analysis was done to the project, along with a thorough marketing study and financial validation. The project as presented was NOT a feasible project!

  2. A totally new concept was developed by MCBA team, which followed a complete marketing and sales plan and a detailed financial reports. 

  3. MCBA team supervised the engineering team process and supported the value engineering part, which reduced the costs in more than 44%

  4. Financial packages were developed with a detailed roadshow presentation for continuous recruitment

  5. The shareholders kept their current investment intact with the creation of a real feasible project.

 

Looking back to the point of coming to MCBA for help...I can only regret we didnt start that 10 years ago.

Jürgen Müller - CEO