Repositioning of listed company strategy


One of our clients faced mainstream business difficulty, as the business went down significantly due to decreasing demand for its products. As a result, the management engaged us to help them find suitable investments to form a synergy for the future development of business.

 

We have analyzed its existing businesses and identified the best suit auxiliary business that can help them further develop their business brand and use the listing company platform to incubate new business.

 

The company invested in a new business by forming a joint venture. The investors like the new business venture. The company managed to raise HKD500 million for its future expansion over some time.

 

During the engagement, the company's bank stopped pushing its loan settlement due to the improvement of the financial position by the increase in equity capital. Also, the bank viewed the new business with the future and supported the new venture.

 

Takeaway: when the business goes down, rethink the corporate strategy, open the corporate mind to accept new business with more discussion with the investor group, which may also help get a good direction for the company to develop its business further.