strategic HRM

Scenario Description

Industry Type: Building and Infrastructure

Market Segment: Large

Stage of Development: Growth

Project Type: Capital Raising

Issue: Client was facing a major cash flow crisis and required AU$15 million to shore up operations and fuel growth. Required strategic assistance to prepare the business for capital raising. Post situational analysis, entrepreneur/ CEO was advised that the capital raising approach was left very late and the company was not in an investment-ready state. As a consequence, advice was that an equity marketing exercise would most likely be unsuccessful within the required time-frame.

Output: Sell-side Due Diligence completed. Business plan, equity marketing pitch and presentation and Investment Memorandum were developed and embraced by the CEO and management team. Under Twoeyes caveat, an equity marketing strategy was pursued by management team.

Result: Company was unsuccessful in its equity marketing efforts and was placed into receivership due to major cash flow crisis.

A. Conduct a SWOT Analysis for the case

B. Recommend solution to the case with Justification

C. Identify reasons for raising capital .