The recent Israel-Palestine conflict has raised stern in the global economy as it had major implications, particularly geopolitical tensions. The current war tensions coming in line with that of the Russia-Ukraine crisis played a vital role in reminding investors about the intricacy of global interdependencies.
Understanding the potential ramifications of such events, this perspective tries to delve into both the immediate and long-term effects globally faced by various countries.
Oil Price Fluctuations
Middle East accounts for major oil production, more than any other region in the world. Countries in the ME Region possess 39% of the world’s oil reserves (roughly a third of the world’s oil production) leading to a speculative price hike and oil supply disruption.
Global oil prices have increased since the fighting began. Brent Crude, a global benchmark, rose 4.2% to $88.15 a barrel and could sour to a record high of $150 if the war escalates further.
Outlook on Safe Haven Assets
The rising geopolitical risk witnessed a surge in hedging conservative assets like gold, and the dollar, potentially boosting the demand for US Treasuries.
The international turmoil resulted in the strengthening of the bond yield prices as the US interest rates tend to remain on the higher side for a much longer period than expected.
“It seems Wall Street has a new geopolitical risk after Israel declared war with Hamas,” said Edward Moya, senior market analyst at Oanda in New York, although he said the immediate impact for financial markets appeared to be limited to safe-haven flows.
Equity Market Sentiments
The international equity market has been in turmoil in the past couple of months, where major global indices saw significant tailwinds in prices.
The Israel-Hamas war has spooked equity markets all over with investors shifting towards safe-haven assets. Investors remain cautious and watchful of the global events with risk-off sentiment grappling the market.
Additionally, as crude oil prices surge, the threat of high inflation grasps the global economy again. The United States, India, China, and other major economies are big importers of oil and can see high import inflation if the oil prices remain elevated.
However, in terms of broader moves, analysts think markets have already digested the implications of the conflict. It can seem jarring that markets are recovering just as freshly, as the Russian-Ukraine conflict only had a muted effect on the US and other global economies.
The venture capital industry has been in turmoil for the past couple of years, having an adverse effect on newly launched startups as they enter into the funding years. Notably, we forecast an overall positive outlook for the venture capital (VC) industry as the funding has been southward bound in the country, domestic angel investors have played a crucial role at this juncture by coming forward and acting as drivers for the growing startup funding ecosystem.
During 2023, the country’s top 10 angel investors have induced funding into the startup ecosystem and have made as many as 101 investments in Indian Startups, according to data by Venture Intelligence. This number is significantly lower than last year’s 207 investments made by Indian angel investors.
In the early week of Oct’2023, investors and entrepreneurs splurged the startup ecosystem by launching their own investment funds. Below, we have provided a detailed description of these highlighted funds, shedding light on their unique attributes and investment strategies.
VSS Investment Funds
Launched by Vijay Shekar Sharma (Founder & CEO, Paytm)
Total Fund Size: Rs. 30Cr.
Industry Overview: Artificial Intelligence (AI) and Electric Vehicle (EV)- related startups, incubated in India.
WTF Funds
Launched by Nikhil Kamath (Founder & CEO, Zerodha)
Total Fund Size: Rs. 80L
Industry Overview: An initiative to invest in startups launched by budding entrepreneurs under the age of 22 years.
Additionally, Industry pioneers and investors such as Rohit Bansal (Co-founder, Snapdeal) and Nithin Kamath (Founder & CEO, Zerodha) also have a future outlook to infuse their investments into the startup ecosystem through the investment entities owned by them.
Source: Venture Intelligence
Zerodha-owned investment arm Rainmatter Capital has allocated a fresh capital of Rs 1,000 crore in a unique structure that has no exit mandates to investors in order to benefit founders. Set up in 2016, Rainmatter has partnered with over 80 startups and has invested close to Rs 400 crore, the investments focus on sectors like health, education, and climate change.
Whereas, Titan Capital (Rohit Bansal’s Investment Arm) screens more than 4,000 inbound proposals from investors every year, making Bansal one of the most active angel investors in the Indian Startup World. Considering the bets taken by him through his investment firm, Bansal has invested in 17 startups, with his portfolio companies including Ola, Pepper, Urban Company, Mamaearth, and Credgenics.
In conclusion, India’s Startup story for the foreseeable future looks promising, we believe that rising funding opportunities from domestic angel investors and VC firms and the country’s growing young entrepreneurial generation will lead India’s economy to compete with the world’s strongest economies.
A company is said to be in distress as and when it’s unable to meet its financial obligations or faces a significant cash crunch to its creditors due to some contingent events, business downturns, high operating expenses (mainly fixed cost), and/or inability to manage businesses changing scenarios. This causes troubles when financial analysts are formulating strategies of valuation for that said company.
Distress can be broadly categorized into economic and financial distress. Economic distress can be classified as financial uncertainties arising from contingent events, events such as supply deficits, natural calamities, and labor union strikes. Financial distress can be said to be a subset of economic distress considering not every time a company undergoes financial distress it is caused due to economic factors but by factors such as asset divestitures, lack of confidence in management, falling margins, etc.
Additionally, the inability to repay the debts or meet financial commitments does not reflect the company’s insolvency as the value of the company is tied to the assets owned by the company. The valuation of distressed assets allows the company to make a sound decision as to its operating activities whether it should continue its operations for the foreseeable future or shut down its operations minimizing its variable cost.
Valuation Methodologies
The approaches to the valuation of distressed assets are very stringent and based on economic principles of price equilibrium, anticipation of benefits, or substitution. The main valuation approaches that are to be discussed are as follows:
Market Approach
The market approach provides an indication of the value of distressed assets by comparing the asset with identical or comparable (that is similar) assets for which price information is available. The Market Approach Method comprises various valuation methods such as:
Comparable Transaction Method: This method is used when information regarding several transactions of a similar nature is available, and those transactions shall be carried out near the valuation date.
Guideline Publicly Traded Comparable Method When the distressed asset subjected to valuation is publicly traded and its comparable asset has a meaningful valuation, the above-pertaining method is used for deriving the value of the distressed asset.
Income Approach
The Income Approach valuation method values a distressed asset by discounting its future cash flows to its current value. Under the income approach, the value of an asset is determined by reference to the value of income, cash flow, or cost savings generated by the asset.
The various methods of valuation of distressed asset used in the Income Approach method comprises the following:
DCF Method: Values adistressed asset by discounting its forecasted future cash flows to its net present value.
Explicit Forecast Method: Mainly used if the distressed asset has a short life span as it involves a projection of the asset’s forecasted future cash flows.
Cost Approach
The cost approach devises the value of a distressed asset on the mechanism that the buyer of the asset will not be able or willing to pay more than the amount which is incurred to acquire the asset of equal utility. Further, the valuation methods used in this approach comprise the following:
Replacement Cost Method: This method offers an equivalent utility indicating value by calculating the cost of a similar distressed asset.
Reproduction Cost Method: In this method, value is calculated by estimating the cost to recreate a replica of a distressed asset. Summation Method: This is a two-step method in which firstly the value of separate component parts is calculated and then the same is added to arrive at the value of the distressed asset.
Case Study
XYZ Airlines is a distressed company that operates domestic and international flights across the world. The company has been severely affected by the COVID-19 pandemic, which has reduced the demand for air travel, disrupted the supply chain, and increased health and safety costs. The company has breached its debt covenants and is facing liquidity problems. The company’s lenders have hired a valuation expert to estimate the value of the company’s assets and liabilities, and to determine the recovery rate for each class of creditors.
The valuation expert collects the following information from various sources:
The company has total assets of $10 billion, consisting of $1 billion in cash and equivalents, $4 billion in aircraft and equipment, $3 billion in intangible assets (such as brand name and landing rights), and $2 billion in other assets (such as inventory and receivables).
The company has total liabilities of $15 billion, consisting of $5 billion in secured debt, $8 billion in unsecured debt, and $2 billion in trade payables and other current liabilities.
The company’s revenue for the last fiscal year was $8 billion, with a gross margin of 20% and an operating margin of -5%. The industry average gross margin and operating margin are 25% and 10%, respectively.
The company’s revenue is expected to recover gradually over the next five years, reaching $12 billion by year 5, as the pandemic subsides, and travel restrictions are lifted. The company’s gross margin is expected to improve to 22%, but its operating margin is expected to remain negative at -2%. The company’s capital expenditure is expected to be high, at 15% of revenue per year, as it needs to upgrade its fleet and comply with new regulations.
The company’s weighted average cost of capital (WACC) is estimated to be 12%, based on its capital structure, risk profile, and market conditions. The WACC reflects the required return for both debt and equity investors.
The company’s terminal value is estimated to be $15 billion, based on a perpetual growth rate of 3% and a terminal WACC of 10%.
Market Approach
The valuation expert identifies a set of comparable companies that operate in the same industry as XYZ Airlines, have similar size, growth, profitability, and risk characteristics, and have recent market prices or transaction values available.
The valuation expert selects four multiples to value XYZ Airlines: enterprise value (EV) to revenue, EV to earnings before interest, taxes, depreciation, and amortization (EBITDA), EV to earnings before interest and taxes (EBIT), and EV to net assets. The valuation expert calculates the median multiple for each metric from the comparable companies and applies it to XYZ Airlines’ corresponding metric. The results are shown below:
Conclusion: The valuation expert takes the average of the four values as the market value of XYZ Airlines’ enterprise. The average value is $2 billion. To obtain the equity value, the valuation expert subtracts the total debt of $13 billion from the enterprise value. The equity value is -$11 billion, which implies that the equity holders have no recovery potential.
Cost Approach
The valuation expert estimates the net realizable value of each asset category by applying appropriate discounts or premiums based on their liquidity, condition, marketability, and obsolescence. The results are shown below:
Conclusion: The valuation expert subtracts the total liabilities of $15 billion from the net realizable value of the assets to obtain the equity value. The equity value is -$8.8 billion, which implies that the equity holders have no recovery potential.
Income Approach
The valuation expert projects the free cash flow (FCF) of XYZ Airlines for the next five years, based on the revenue, margin, and capital expenditure assumptions. The FCF is calculated as EBIT*(1-tax rate) + depreciation – capital expenditures – change in net working capital. The valuation expert assumes a tax rate of 25% and a depreciation rate of 10% of aircraft and equipment.
The results are shown below:
Conclusion: The valuation expert discounts the FCFs to present value using the WACC of 12%. The present value of the FCFs is -$4.4 billion. The valuation expert adds the present value of the terminal value of $15 billion, discounted at the terminal WACC of 10%, to obtain the enterprise value. The enterprise value is $9.8 billion. To obtain the equity value, the valuation expert subtracts the total debt of $13 billion from the enterprise value. The equity value is -$3.2 billion, which implies that the equity holders have no recovery potential.
Conclusion
The valuation expert compares the three approaches and concludes that the income approach is the most reliable and relevant for valuing XYZ Airlines, as it reflects the company’s ability to generate cash flows from its operations and its risk profile. The market approach and the cost approach may not capture the company’s specific circumstances and challenges and may be influenced by market conditions and assumptions that are not applicable to XYZ Airlines.
The valuation expert reports that the enterprise value of XYZ Airlines is $9.8 billion and the equity value is -$3.2 billion, based on the income approach. This means that the company’s assets are worth less than its liabilities and that the equity holders have no recovery potential.
While working for the roofing contractor’s industry, which is a large and growing market that is expected to reach USD 51.9 billion in 2021. We have provided comprehensive market research, competitive analysis, pricing strategy, traffic analysis, key competitive advantages, and customer acquisition strategies for the industry. These documents and analyses provide valuable information and insights on the current and future trends, challenges, opportunities, risks, and strategies in the industry.
The roofing contractors’ industry is driven by factors such as the increasing demand for roof replacements and repairs, the rising adoption of energy-efficient and eco-friendly roofing materials, the growing construction activity in residential and commercial sectors, and the favorable government policies and initiatives for green buildings.
The industry is also facing challenges such as low barriers to entry, high competition, labor shortages, weather uncertainties, and fluctuating raw material prices. The industry is segmented by service (roof installation, roof maintenance and repair), product (asphalt shingles, metal roofing, single ply roofing, coatings, low slope asphalt), end user (residential, commercial), and geography.
We have analysed the pricing strategies of different competitors in the roofing contractors’ industry, based on their service features, target segments, value proposition, cost structure, and competitive advantage. We have also provided a comparison table of the pricing plans and features of each competitor. We have suggested some best practices and tips for setting a pricing strategy that can maximize revenue and customer satisfaction.
We have also provided a traffic analysis dashboard that shows the traffic volume, quality, conversion rate, bounce rate, average session duration, and other key performance indicators for each competitor. We have also provided some recommendations for improving traffic generation and optimization. We have identified and highlighted the key competitive advantages of each competitor in the roofing contractors’ industry, based on their service differentiation, innovation, customer service, brand reputation, market presence, partnerships, and awards. We have also provided some examples of how each competitor leverages their competitive advantage to attract and retain customers.
Ruskin Felix Consulting helped Your Home Management to better understand a large and growing market that is expected to reach USD 5.59 billion by 2032, which is the property management software. We have provided comprehensive market research, competitive analysis, pricing strategy, traffic analysis, key competitive advantages, and customer acquisition strategies for the industry. These documents and analyses provide valuable information and insights on the current and future trends, challenges, opportunities, risks, and strategies in the industry.
The property management software industry is driven by factors such as the increased adoption of cloud-based technology, the growing shift of businesses toward digital transformation and customer engagement, the rising demand for online and personalized learning, and the vast data being generated across businesses. The industry is also facing challenges such as high competition, low retention rates, quality issues, and regulatory uncertainties. The industry is segmented by solution (AI and predictive analytics, content management and collaboration, asset creation, structured work management), deployment (on-premise, cloud), organization size (small and medium enterprises, large enterprises), end user industry (BFSI, telecommunications, manufacturing, media and entertainment, transportation, retail), and geography.
We have identified and evaluated the major competitors in the property management software industry, based on their product offerings, features, pricing, market share, customer reviews, strengths, weaknesses, opportunities, and threats for Your Home Management.
Post formulating the pricing strategies of different competitors in the property management software industry, based on their product features, target segments, value proposition, cost structure, and competitive advantage. We have also provided a comparison table of the pricing plans and features of each competitor. We have suggested some best practices and tips for setting a pricing strategy that can maximize revenue and customer satisfaction.
We have identified and highlighted the key competitive advantages of each competitor in the property management software industry, based on their product differentiation, innovation, customer service, brand reputation, market presence, partnerships, and awards. We have also provided some examples of how each competitor leverages their competitive advantage to attract and retain customers.
We have explored and evaluated the customer acquisition strategies of different competitors in the property management software industry, based on their marketing mix, customer journey, funnel stages, and conversion tactics. We have also provided some best practices and tips for developing and implementing effective customer acquisition strategies that can increase brand awareness, generate leads, nurture prospects, and drive sales.
Asset management and wealth management are synonymous phrases. A financial advisor who specializes in managing clients’ assets is called an asset manager. Although advice might be helpful, ultimately it is the client’s investing plan, risk tolerance, and financial situation that will determine what is best for their portfolio. Asset management services aid wealthy people and businesses by distributing their money between liquid (equities) and illiquid (real estate, for example) investments (funds).
An investment in an AMC is similar to purchasing shares in a mutual fund managed by the AMC. A fund’s rate of return is dependent on its performance in the underlying market. Gains might be much greater with a well-managed fund.
WHAT ARE ASSET MANAGEMENT ORGANIZATIONS?
Definition
A company that pools money from numerous investors to buy substantial quantities of capital assets is often referred to as an “Asset Management Company.” To grow, companies like these have to make choices about when, where, and how much to spend on assets.
Expert financial managers know how to analyze the market, diversify their investments, construct and analyze portfolios, and measure the returns on their holdings.
Characteristics
To put it simply, an AMC is a company that manages the investments of its clients in the financial markets.
Asset management companies (AMCs) can have as little as a few hundred thousand dollars, named as ‘asset under management (AUM)’, stored under management or as much as a few trillion dollars AUM.
When an AMC makes a substantial purchase on behalf of several clients, it can take advantage of economies of scale and reduce the overall cost to those clients.
ROLE OF ASSET MANAGEMENT FIRMS
Overview
To fund its operations, an AMC pools resources from private and public investors to provide to its clients. In this way, the investor can make well-informed decisions and build a safe portfolio, free of surprises. A minimal fee or commission is charged to maximize returns for investors.
Key functions of AMCs
Asset Allocation
Every mutual fund has a specific financial goal that helps the manager limit the investing options. A common practice among debt-focused funds is to put no more than 20% of their AUM into equities. Furthermore, a balanced fund may elect to invest only 60% of its total assets in equities and bonds.
Research and Analysis
Researching potential investments is a daily chore for a portfolio investor. Analysts regularly study market, micro, and macroeconomic data, as well as fund performance, and report their findings to management.
Portfolio Construction
There will be an exclusive team of researchers and analysts who report their market findings and trends to the fund manager.
Performance Review
Even with disclaimers, investors and trustees will scrutinize an AMC’s investment decisions if they cannot provide a satisfactory explanation for them. All investors need to be brought up to date on all acquisitions, sales, adjustments to NAV, alterations to the portfolio, etc.
TYPES OF AMCs
Overview
Companies that manage assets can take numerous shapes and sizes, including:
Hedge funds
Mutual funds
Index funds
Exchange-traded funds
Private equity funds
Other funds
Boutique asset management firms
A boutique bank is a small institution that specializes in serving a specific clientele. There is no shortage of small businesses in the investment management and banking sectors. By focusing on a specific sector, client asset level, kind of banking transaction, etc., these smaller enterprises fill a void left by the larger firms.
Large institutional asset management organizations
There is a wide variety of institutional asset managers available, with the majority belonging to institutional investors including pension funds and insurance firms. Individuals and businesses can use the assistance of financial advising services to create and manage investment plans. Depending on their preferences, pension funds, and insurance firms may either operate with internal or external asset managers.
Independent asset management companies
Whereas conventional banks are owned and operated by a single financial institution, IAMs are completely independent.
Even though they are not financial institutions, independent asset managers nonetheless rely on banking services like bank accounts and custody accounts to store and invest their clients’ funds.
MUTUAL FUNDS
These funds are a special form of investment organization that pool the money of many different investors, both retail and institutional and invest it in a wide range of different stocks and bonds on behalf of their unitholders.
Its types
Based on the ease of investment, these funds can be:
Open-ended funds:
Buying into these funds is not time or quantity limited. Shares can be bought or sold at any period of the year at the then-current net asset value. An open-ended fund is a good option for people who need access to their money frequently.
Close-ended funds:
Closed-ended funds have predetermined unit cap amounts, and investors can only purchase units for a specific period. The last day to redeem is the maturity date. However, to improve liquidity, schemes trade on stock exchanges.
Mutual Fund Asset Class
Depending on the assets they invest in, these funds are categorized under the:
Equity funds:
If you invest in an equity fund, your return will be tied to the performance of the stock market. These investments are extremely risky, but might potentially yield big returns. These funds can be further subdivided into several different types based on their characteristics, including large-cap, mid-cap, small-cap, focused, and exchange-traded series funds. Equity funds are a fantastic option for advisors who are willing to take on some risk.
Debt funds:
Bonds, treasury bills, and other forms of fixed-income investment are the primary holdings of debt funds, a type of mutual fund. Debt funds, despite offering a lesser return, may be able to provide regular income and stability. Low-duration, liquid, overnight, credit risk and gilt funds are just some of the subsets that can be created by using duration as a dividing line.
Hybrid funds:
Hybrid funds are diversified investment vehicles that hold both fixed-income and stock market assets. The fund house might have a strict policy about how much of each type of investment to make, or they might be more open to negotiation. The two main buckets into which hybrid funds fall are “balanced” and “aggressive.” Multi-asset allocation funds are a type of mutual fund that invests across a variety of asset categories.
Based on Investment Goals
Growth funds:
Growth funds invest substantially in high-performing stocks intending to generate capital appreciation. The possibility for significant returns makes these funds interesting to savers with a longer time horizon.
Tax-saving Funds (ELSS):
Equity-linked savings plans refer to such funds that invest mostly in company equities. Nonetheless, they are tax deductible under Section 80C of the Income Tax Act. Their financing distance is at least three years.
Capital protection funds:
These funds diversify their holdings between bonds and stocks. This may ensure the security of investments, reducing the likelihood of significant losses. Remember that any money you get back may be taxed.
Fixed-maturity funds (FMF):
Money in these funds will be put into debt market securities with maturities that match or are somewhat close to the fund’s own. For instance- a three-year FMF would invest entirely in short-term securities.
Pension Funds:
Advisors in these funds want steady long-term returns. They are a common form of a hybrid fund with low yields at the moment but the potential for higher stability in the future.
Risk appetite
To diversify your portfolio without taking on too much risk, mutual funds are another choice. Very low-risk and low-risk funds are typically classified as short-term investments (liquid or ultra-liquid funds) that attempt to hedge market risk. Inadequate profits are generated from them.
Allotting a portion of their assets to debt instruments, medium-risk funds are very similar to hybrid funds. Gains of any significance are to be expected only when the stakes are high.
BENEFITS OF INVESTING IN THESE
Advanced Portfolio Management
In addition to the “expense ratio,” advisors in mutual funds also pay a “management fee” to cover the cost of hiring a “professional portfolio manager” to execute the day-to-day stock, bond, and other asset trades. Investment management advice from a professional is worth every penny spent.
Diversification
To reduce portfolio risk, these funds invest in a large number of different assets (often between 50 and 200). In many stock indexes, these funds have 1,000 or more stocks in their portfolios.
Convenience and Fair Pricing
Mutual funds are easy to buy and understand. Low minimum investment and daily trading at the net asset value at the end of the trading day (NAV). With this, day traders no longer have access to the price swings and arbitrage opportunities that they rely on.
Real estate consulting is a service provided by professionals that offer advice and direction on real estate-related issues. Clients of real estate consultants are often those in need of assistance with the market including buying, selling, managing or investing in real estate.
Market analysis, property valuation, feasibility studies, property management and investment analysis are just a few of the many activities that fall under real estate consulting. When it comes to transactions, legal and regulatory issues may arise and consultants can guide clients to resolve these issues.
CONSULTING FOR THE INDUSTRY
The importance of real estate consulting can be seen in various ways such as:
Expert Advice: Real estate consultants provide clients with expert advice on various aspects e.g., property valuation, market trends, investment analysis and legal and financial considerations helping clients make informed decisions that are based on accurate and up-to-date information.
Market Knowledge: Real estate consultants have a deep knowledge of the local market involving current and future trends, supply and demand and other factors that can impact property values. This knowledge helps clients identify opportunities and avoid potential risks.
Customized Solutions: Real estate consultants work closely with clients to understand their goals and develop customized solutions according to their unique requirements ensuring clients receive personalized advice and support that is aligned with their objectives.
Access to Networks: Real estate consultants have extensive network of industry professionals namely agents, brokers, lawyers and financial advisors. This gives clients access to wide range of resources and expertise that can help them achieve their goals.
CHARACTERISTICS OF REAL ESTATE CONSULTING
The following are some of the characteristics of real estate consulting:
Objectivity: Real estate consultants offer best objective advice and recommendations to their clients based on their expertise and analysis of market data. They are not emotionally attached to a particular property or client and can offer an unbiased perspective on the best course of action.
Customization: Real estate consulting services are customized to meet the specific needs of the client whether it is buying, selling, leasing or managing a property, the consultant will work with the client to develop a customized strategy that aligns with their goals and objectives.
Collaboration: Real estate consultants work closely with their clients as well as other professionals in the industry such as lawyers, accountants, and contractors to ensure a seamless and efficient process. They act as a bridge between different parties ensuring effective communication and collaboration throughout the transaction.
Problem-solving: Real estate consultants are skilled problem-solvers who can anticipate and resolve issues that may arise during a transaction. Having the experience to navigate complex situations they can find creative solutions that benefit their clients.
Confidentiality: Real estate consulting services are usually provided on a confidential basis with the consultant protecting the client’s information and interests ensuring that the sensitive information is not disclosed to unauthorized parties and that the client’s privacy is respected.
BENEFITS
Some of the benefits of real estate consulting include:
Expertise: Real estate consultants are specialists in their industry and possess extensive knowledge of the market trends, laws and regulations that provide valuable insights and guidance to clients helping them make informed decisions about their investments.
Save Time and Money: Real estate consultants can save clients time and money by providing them with efficient and effective solutions to their needs helping clients identify properties that meet their requirements and negotiate favorable terms and conditions for the purchase or lease.
Maximizing Return on Investment: To maximize their return-on-investment clients can benefit from working with consultants who can aid in the process of locating properties with growth potential and devising a plan to raise the value of their holdings over time.
Risk Management: Consultants help clients manage their risks by identifying potential risks and providing strategies to mitigate them by analyzing financial risks, regulatory compliance risks and other risks associated with the purchase or management of real estate.
Network: Consultants have a network of contacts in the industry such as brokers, appraisers, attorneys and other professionals providing clients with access to valuable resources and help them find the right professionals for their specific needs.
REAL ESTATE CONSULTING FIRMS
THE ROLE OF REAL ESTATE CONSULTING FIRMS
Here are some of the key roles of real estate consulting firms:
Market Analysis: Real estate consulting firms analyze the current market conditions and provide insights into trends, pricing and demand that help clients in making informed decisions for their investments.
Property Valuation: Real estate consulting firms provide valuation services that help clients determine the fair market value of a property which is essential for buyers, sellers and investors.
Due Diligence: Real estate consultants perform due diligence on their clients’ behalf to verify that the property is in good shape and free of any environmental or legal concerns that could reduce its value or impact its intended use.
Project Management: Real estate consulting firms provide project management services that help clients oversee the development, construction and completion of projects.
REAL ESTATE CONSULTING SERVICES
The most common consulting services are as follows:
Investment Analysis: Real estate consultants assist clients in determining the profitability of different investment opportunities namely rental properties, commercial buildings and land development.
Property Management: Consultants help clients manage their properties which include maintenance, repairs, tenant screening, rent collection and other administrative tasks.
Feasibility Studies: Real estate consultants conduct feasibility studies to determine the viability of a proposed development project which includes financial analysis, market demand analysis and a review of zoning and regulatory requirements.
Asset Valuation: Real estate consultants provide clients with a valuation of their assets which is critical for making informed decisions regarding sales, refinancing or development.
Brokerage Services: Real estate consultants help clients buy or sell properties, negotiate contracts and provide guidance throughout the transaction process.
Strategic Planning: In order to achieve their client’s long-term real estate goals and objectives consultant can help them craft comprehensive and strategic plans.
Site Selection: Real estate consultants assist clients in identifying and evaluating potential locations for a new development project or business expansion.
According to a report by IBISWorld, the largest segment of the real estate consulting market in the US is property management and consulting which accounts for 38.5% of industry revenue whereas other segments include research, consulting (27.3%) and real estate appraisal and valuation (23.5%).
The industry is highly fragmented with no single firm holding a dominant market share. According to the same IBISWorld report the top firms in the industry (CBRE Group, JLL, Newmark Group and Colliers International) account for less than 25% of industry revenue.
HOW IT CAN BENEFIT REAL ESTATE INVESTORS?
Here are some ways in which real estate consulting can benefit real estate investors:
Market insights: Real estate consultants provide valuable insights on current market trends i.e. supply and demand, pricing and investment opportunities. This information can help investors make informed decisions about where and when to invest.
Property analysis: Consultant analyze properties to determine their potential for investment which comprises of evaluating the property’s location, condition and potential for growth among other factors.
Risk management: Real estate consultants can help investors identify and manage risks associated with investments which includes assessing potential legal or financial issues that may arise as well as helping investors develop strategies to minimize these risks.
Portfolio optimization: Consultant helps investors optimize their investment portfolios by providing guidance on asset allocation, diversification and other investment strategies helping investors achieve their financial goals and maximize returns.
Expert advice: Real estate consultants are experienced in their field providing valuable advice to investors such as financing options, tax implications and other financial considerations.
Negotiation support: Consultant helps investors negotiate deals with sellers, lenders and other parties involved in the investment process helping investors get the best possible deal and avoid costly mistakes.
In conclusion, Real estate consulting can help investors gain knowledge, perspective and backing they require to make sound financial decisions. Investors can improve their chances of success and move closer to their financial goals by teaming up with a consultant. We at Ruskin Felix Consulting provide consulting services within your budget, please feel free to contact us on contact@ruskinfelix.com
Go-to-Marketing consulting refers to a type of consulting service that assists businesses develop and implement effective marketing strategies. The aim of go-to marketing consulting is to provide expert guidance and support to help companies achieve their marketing objectives, whether that’s increasing brand awareness, boosting sales, or launching a new product.
A “go-to-market” (GTM) strategy is a plan for how a company will successfully introduce a good or service into the market. It outlines how the company will reach audiences, position the product in the market, and achieve growth and profitability. An effective GTM strategy includes various components, such as market surveys, target customer identification, product positioning, pricing, and sorting various channels.
Numerous consultants provide services aimed at determining and developing a go-to-market strategy; these consultants employ a variety of methods and tools (including surveys, data analysis, and customer insights) to aid businesses in better understanding their target market, developing more targeted marketing strategies, and establishing more sustainable business models.
HOW DOES IT DIFFER FROM TRADITIONAL MARKETING CONSULTING?
Go-to marketing consulting differs from traditional marketing consulting in several ways:
Focus on outcomes
consultants focus on a GTM strategy that delivers measurable results and outcomes, rather than simply providing advice and recommendations to improve their marketing strategy.
Agile approach
Go-to-market consultants adopt an agile and flexible approach, responding to changing market conditions and customer needs in real-time. They focus on how much customer acquisition costs they would incur and for which market segment.
Go-to marketing consultants are well-versed in the latest marketing technologies and use these tools to optimize and streamline marketing efforts.
Data-driven
Go-to marketing consultants use data and analytics to inform their strategies and make evidence-based decisions. Plenty of digital channels come into play when they strategize, based on buyer persona, as to which go-to-market strategy will best serve their purpose.
Customer-centric
Top marketing consultants put a premium on client relationships built on trust and open communication, and they regularly solicit and act on client feedback to shape marketing plans. A consultant for developing a go-to-market strategy should devise a sound plan of action for reaching target audiences that aid in achieving organizational goals.
In conclusion, as opposed to traditional marketing consulting, which typically focuses on advice and suggestions, go-to marketing consulting is more results-driven, data-driven, and customer-centric. To maximize sales, a consultant specializing in go-to-market strategies needs to know which niches they can effectively serve.
UNDERSTANDING HOW TO MAP OUT THE BEST MARKETING STRATEGY
A thorough understanding of the target market, competitive environment, marketing strategy, and the offered product or service is essential for developing a successful go-to-market (GTM) plan. Providing outstanding service requires an in-depth familiarity with the market, trends, potential customers, consumer behavior, and niche markets.
The go-to-market strategy consultant should also have a clear understanding of the company’s goals, budget, and resources to create a strategy that aligns with the overall business objectives. The go-to-market strategy should focus on creating value for the target customers, understanding buyer persona, positioning the product or service effectively, and building a strong brand image. Effective communication and implementation of the gtm strategy are also crucial for its success.
WHAT SERVICES DO GO-TO-MARKET CONSULTANT OFFER?
Consultants specializing in Go-to-market (GTM) help businesses develop and implement plans for launching new products and services. Studying the marketplace, figuring out whom to sell to and how to get the word out about your new product, and creating a marketing strategy and advertising campaign are included in Go to market consulting. The objective is to improve businesses’ ability to connect with their ideal customers, therefore expanding their client base and ultimately their bottom line.
BENEFITS OF WORKING WITH A GO-TO MARKETING CONSULTANT
Working with a marketing consultant can bring several benefits to a business, including:
Expertise: Successful businesses often use the services of marketing consultants because of the abundance of knowledge and expertise they bring to the table in terms of effective marketing tactics and techniques.
Fresh perspective: A marketing consultant from the outside can help you see your marketing strategy in a new light and come up with innovative approaches.
Increased efficiency: Hiring a marketing consultant can help you save time and money by streamlining your marketing activities.
Access to resources: You can benefit from a marketing consultant’s connections to media outlets, influential people in your industry, and other marketing pros.
Cost savings: Rather than spending money on a full-time marketing staff and the related overhead, you can save money by employing a marketing consultant on a project basis.
Measurable results: You can count on marketing experts to help you assess the efficacy of your campaigns and make educated decisions based on hard data.
COMMON CHALLENGES AND HOW A GO-TO MARKETING CONSULTING CAN HELP
Common challenges that businesses face include:
Brand Awareness: Difficulty in creating brand awareness and reaching the target audience.
Competition: Difficulty in differentiating the business from competitors and standing out in a crowded market.
Lead Generation: Difficulty in attracting and converting leads into paying customers.
Customer Retention: Difficulty in retaining customers and building loyalty.
Limited Budget: Difficulty in maximizing marketing efforts with a limited budget and resources.
STRATEGIES FOR HOW GO-TO MARKETING CONSULTING CAN HELP OVERCOME CHALLENGES
Developing a comprehensive marketing strategy: They can help you identify your target audience, create a brand image, and develop a plan to reach your marketing goals.
Conducting market research: They can help you understand your market and competitors and identify opportunities for growth and differentiation.
Maximizing your marketing budget: They can help you prioritize your marketing efforts and allocate resources effectively, ensuring you get the most out of your budget.
Improving lead generation: They can assist you with developing a lead nurturing plan, optimizing your website for conversion, and making use of lead magnets.
Building customer loyalty: They can help you create customer-centric marketing programs, gather customer feedback, and improve the overall customer experience.
In general, a marketing consultant may assist you to overcome typical business obstacles and reach your marketing objectives by bringing their knowledge, imagination, and analysis of hard facts to the table.
HOW TO CHOOSE THE RIGHT GO-TO MARKETING CONSULTANT FOR YOUR BUSINESS?
To choose the right marketing consultant for your business, consider the following steps:
Define your goals: Clearly outline your marketing goals and objectives so that you can look for a consultant who has experience in helping businesses like yours achieve similar goals.
Research potential consultants: Look for marketing consultants with a strong track record in your industry or niche. You can start by searching online, asking for referrals from colleagues or friends, or consulting with professional associations.
Evaluate credentials and experience: Verify the consultant’s background and expertise to be sure they have what it takes to help you succeed in marketing. Think about their previous work, examples, recommendations, and list of satisfied customers.
Assess communication and collaboration skills: Good communication and collaboration skills are critical for a successful consultant-client relationship. Schedule an initial consultation with potential consultants to assess their communication style and ability to work with your team.
Compare fees and services: Compare fees and services offered by different consultants to determine the best value for your investment.
Decide: Select the consultant who best fits your needs in terms of experience, communication, and cost to realize your marketing objectives.
Before beginning any engagement, make sure everyone involved knows their respective roles and duties, as well as the overall scope of the project.
CASE STUDIES: SUCCESS STORIES OF BUSINESSES THAT HAVE BENEFITED FROM GO-TO MARKETING CONSULTING
A case study is a comprehensive examination of a real-life situation or event, typically involving a business, to gain insights into a specific subject, such as marketing. It can demonstrate the benefits a company experiences because of utilizing a particular marketing strategy or consulting services.
There have been several successful case studies of businesses that have benefited from GTM consulting, including:
Fresh works
As a result of working with a GTM consultant, a cloud-based provider of customer interaction software was able to better position its brand and expand its customer base, leading to more income.
Dropbox
For assistance breaking into the corporate sector, a file-hosting business retained the services of a GTM consultant. The consultant assisted Dropbox in developing a strategic marketing plan, which increased income significantly in the business sector.
Hootsuite
Hootsuite hired GTM consultants to help expand the company’s footprint internationally and into new areas. Hootsuite’s foreign sales and popularity rose thanks to the consultant firm’s work on the company’s go-to-market strategy.
These studies show how GTM consultancy has helped these organizations enhance their marketing efforts, leading to significant increases in income.
In conclusion, marketing consultancy can boost a company’s brand awareness, customer loyalty, and bottom line in many ways. These are just a few of the many companies that have benefited from go-to-market strategy consultation.
FUTURE OF GO-TO MARKETING CONSULTING AND ITS IMPACT ON THE MARKETING INDUSTRY
Data-driven decision-making and unique strategies for each business play an increasingly important role in the future of go-to-market (GTM) consultancy. GTM consultants will be required to use the consumer data at their disposal to personalize their suggestions and strategies for each client as technology and data collection capabilities continue to expand. The result will be a more productive method of advertising, which will boost the fortunes of businesses that embrace it. Furthermore, GTM consultants will need to keep up with the latest trends and technology in the marketing sector if they want to be valuable to their clients.
GO-TO-MARKET STRATEGIES: KEY CONSIDERATIONS FOR A SUCCESSFUL BUSINESS
Businesses must hire go-to-market consultants to assist them to create profitable sales strategies. Market segmentation, sales force composition, value proposition, pricing strategy, promotional tactics, and channels of distribution are just a few of the components of an effective go-to-market strategy. This post will cover the fundamentals of developing a winning approach to entering a new market.
Discovering whom you want to buy from is the first step in creating an effective marketing campaign. Your success here will depend on your in-depth familiarity with your intended market, their wants and needs, and the state of the market today. In addition to defining these broad categories, you should also divide your target market into subsets based on demographics, purchasing habits, and product usage. By breaking down the potential customer base into smaller groups, sales performance can be enhanced in several ways.
Identify Your Unique Value Proposition
Your company’s value proposition is its unique selling point. It ought to make it easy for clients to see why they should choose your product or service over the competition. A distinct selling concept is essential for attracting and keeping clients and giving businesses an edge over the competition.
Develop a Marketing and Sales Approach
A marketing and sales strategy can be developed after a target audience and USP has been identified. Included in this strategy should be tactics for drawing in new clients while keeping the ones you have. In addition to more conventional methods like direct sales and pedagogical content, your marketing strategy should make use of digital networks like social media. Focusing on the customer’s experience from the first point of contact to and beyond the transaction is an important part of any successful sales strategy, as is the implementation of a sales process and sales organization to back up the sales force.
Consider the Cost of Customer Acquisition
The cost of acquiring a new customer should be taken into consideration when developing a go-to-market strategy and updating the market strategy which was in play. This cost should be balanced against the potential revenue generated from a new customer to determine the feasibility of your sales strategy. Your pricing strategy should also take into consideration the cost of customer acquisition, as well as the value proposition and industry trends.
Plan for Proper Pricing and Distribution
To ensure that your pricing plan serves your business goals and value proposition, it is essential that you give it plenty of thought before launching into the market. Considerations such as these, along with the value of your product or service and market dynamics, should inform your price strategy. The cost of customer acquisition and the length of the sales cycle can be affected by the distribution channels utilized to reach your target market.
Successful market entry, then, rests on a foundation of successful change management. Modifying the sales approach, sales procedure, or sales structure of your business requires rigorous preparation and execution. Having a devoted and well-trained sales force is also essential since your marketing and sales efforts will suffer without them.
In conclusion, a successful go-to-market strategy requires careful planning and a thorough understanding of your target market, unique merit proposition, and commercial operations. By considering key considerations such as target market, value proposition, marketing, and sales approach, cost of customer acquisition, pricing, and distribution, and companies can ensure their go-to-market strategy is effective and drives business success.
THE KEY TO A SUCCESSFUL BUSINESS PLAN: UNDERSTANDING THE BUYER’S JOURNEY
New product launches are more likely to be successful when careful thought and research have gone into the buyer’s journey. Putting yourself in the buyer’s shoes and learning what they value is essential if you want to achieve your strategic goals.
Here are some key points to keep in mind when developing your business plan:
Product Market Fit
Before releasing a product, it’s important to make sure it will be well received by consumers. Understanding the size of the market, differentiating between emerging and mature markets, and zeroing in on your ideal client are all essential first steps.
It is a process that every customer goes through to become aware of, evaluate, and purchase a product or service. An efficient go-to-market strategy made to better understand the journey a buyer goes through, to become an end consumer, can help you tailor your marketing and sales efforts to meet the needs and preferences of your target audience.
The three stages of the buyer’s journey are:
Awareness
The probable customer becomes aware of a problem or need and begins searching for information to address it.
Consideration
The actual customer evaluates options and narrows down the choices to a few that they believe will best address their problem or need.
Decision
The customer makes a final decision and purchases a product or service.
To make a product fit, according to the go-to-market strategy, one should conduct industry research to understand your target audience and their needs, and then use that information to inform the features, messaging, and positioning of your product.
The Buying Center
The buying center refers to the group of people involved in the purchasing decision. This includes the influencer, decision maker, and user. Understanding the buying center can help you better position your product and service offering to meet their needs.
Service Model
Your go-to-market service model should align with your promise and ideology and meet the needs of your customers. This includes understanding the pricing details and developing a customer database to track your business performance.
The go-to-market strategy helps prepares a model in understanding the buyer’s journey is similar to the product model, but with a focus on services rather than physical products. The goal is to understand the steps an interested customer takes to become aware of, evaluate, and purchase a service.
Evolving Customer
Remember that your customers are dynamic beings whose wants and needs are always changing. Your company strategy needs to be malleable so it can adjust to these shifts.
Go-to-Market Strategy
Always keep in mind that your customers are ever-evolving beings whose preferences and demands will change over time. The strategy your organization employs should be flexible enough to accommodate these changes.
Market Share
Increasing your company’s clientele is a top priority right now. To grow a profitable company, it’s crucial to invest time and energy into both improving current offerings and looking for new markets to enter. Your understanding of business strategy and gtm is crucial to the development and expansion of your firm.
In conclusion, understanding the journey, made from start to end, by any consumer or buyer and considering the customer’s perspective is essential to the success of your business. By aligning your product and service offering with your brand promise, and continuously evolving your business strategy, you can increase industry share and achieve your strategic objectives.
HOW DOES GO TO MARKET STRATEGY AND MANAGEMENT CONSULTING GO HAND IN HAND?
A company’s go-to-market strategy details how the firm intends to reach its intended customers and introduce them to its products and services. A business might benefit from management consulting by receiving professional guidance from industry insiders on how to improve operations and cut costs.
The company’s strategy for breaking into its target market and introducing its products is laid out in the Go-to-Market Strategy. Management consulting offers organizations guidance from industry experts, including both peers and competitors, on how to improve operations while lowering costs.
GO-TO-MARKET STRATEGIES: ESSENTIAL FOR A SUCCESSFUL PRODUCT LAUNCH
A company’s go-to-market strategy determines how well it introduces a new product to consumers. To do this, one must first determine the intended audiences and then establish an appropriate strategy for reaching them through advertising. Establishing clear distinctions between different types of customers and creating buyer personas can aid in the creation of targeted strategies for expanding a business’ clientele.
Salespeople are vital to the success of any business because they are the ones who communicate with potential customers. To reach the intended result, it is crucial to pay close attention to the cost of acquiring new customers while simultaneously concentrating on providing a competitive advantage.
In emerging markets, it’s important to understand the needs and behaviors of probable customers and develop a strategy to satisfy them. A well-planned go-to-market strategy can lead to successful product launches, increase market share and drive business growth.
UNDERSTANDING THE GO-TO MARKET AND ITS STRATEGIES
A Go-to-market (GTM) strategy typically includes the following elements:
Target market
Identifying the specific segments of customers that the company wants to reach.
Understanding of Value
Defining the unique value that the company offers to its customers.
Pricing strategy
Determining the pricing structure for the company’s products or services.
Choosing the best channels
Choosing between several sales channels, such as the Internet, traditional stores, and dedicated sales staff, to reach your target audience and close the deal.
Sales and marketing plan
Creating proper marketing and sales plan to increase demand and sales through promotion and publicity.
Customer acquisition and retention
Developing plans for attracting and retaining customers, including customer service and support.
Metrics and KPIs
Develop a set of metrics to evaluate how well the GTM plan is working.
These parts work together and must be in sync with the company’s overall strategy and objectives. The go-to-market (GTM) strategy is essential since it dictates how a business will sell to its intended demographic.
SIMPLIFYING GO-TO-MARKET STRATEGY WITH RFC
RFC is a boutique firm that specializes in go-to-market strategy consulting solutions. Please feel free to contact us to know more about the Go-to-market consulting and other services that we offer.
Ruskin Felix Consulting partnered with Wooths – on-demand private work booths to create a comprehensive business plan and strategy report by analyzing the project, global assessment, overall industry, total available market, serviceable available market, service obtainable market, product analysis, and understanding of the financial viability of the project by providing insights on cost assessment and the valuation metrics of Wooths.
Wooths helps you access work pods and meeting rooms that allow the working population to access quiet private workspaces on demand whenever they need it, all over the city: malls, hotels, coffee shops, metro stations and other convenient locations. They are completely soundproof pods and Wi-Fi enabled and available on an hourly basis. Wooths unlocks productivity throughout the city by unlocking workspaces that come in various formats depending on your need. The app allows you to book four types of workspaces: hot desks, meeting rooms, private offices, and smart work booths in spaces such as co-working, serviced offices, traditional offices, shopping centers, metro stations etc.
Wooths will partner with various businesses in the hospitality industry like cafes and hotels, which currently have only 30% occupancy due to COVID restrictions and lockdowns in various parts of the country. Other partners will be open in public places such as malls and parks, allowing customers to access work pods and hot desks in proximity to their houses. Metros and co-working companies will equally be important to Wooths’ business model.
The overall business model of utilizing free spaces across the commercial real estate to benefit from the new wave of work-from-home scenarios may play very well due to the lack of direct competitors in the field. However, the business is dependent on pricing, location and user experience and thus, those aspects should be taken care of while executing parts of the Wooths Project. Wooths should also focus on setting up the units in residential places to boost the average user rate per day across business models. Scalability is also an important factor. With most co-working spaces being utilized only 20-30% due to its high costs, low flexibility and distance from home factors, Wooths places itself as the best alternative for employees and freelancers across cities.
The valuation of Wooths is thus assessed at INR 482.83 Crores. At a 10% deviation range. The valuation range is between INR 434.55 Crores and INR 531.12 Crores. The total NPV of the FCFF for the Project is 35.38 Crores. IRR for the Project based on FCFF (Net Free Cash Flows) = 62.84%. IRR for the Project based on EBITDA (Net Earnings Excluding Capital Expenses) = 87.27%. The total Overall payback period as per the project metrics and projections is 4th Year. This is also the Year when Wooths will become Net Cash Flow positive with INR 13.25 Crores of Net Cash Inflow. The expected net cash burn will be INR 12.92 Crores, covered fully within 3 Years and 11 months. RFC believes the project will be very useful and will have great market potential post-COVID-19 in India.
Ruskin Felix Consulting LLC prepared a comprehensive feasibility study and strategy report based on the fractional ownership in real estate industry. We highlighted the product overview, product analysis, global outlook, regional outlook, value proposition and optimization, funding events, market sizing and the pricing market for the same. We focused on the feasibility of the project by building competitive advantages, providing insights on the gaps and opportunities that entail while undertaking the project. This report was aimed towards analyzing the viability of the fractional ownership company.
A percentage of an asset is owned as a fraction. Individual shareholders purchase fractional ownership shares in the asset, sharing usage rights, income sharing, priority access, and discounted rates with them. The use advantages fractional owners in real estate enjoy are on par with those of timeshare owners. For pricey assets like planes, sports automobiles, and vacation homes, fractional ownership is a frequent investment arrangement. The key distinction between timeshare and fractional ownership is that with fractional ownership, the investor owns a portion of the title as opposed to time-based units. In the case of fractional ownership, as the asset’s value rises, so do the value of the investment’s shares.
Solreva is the modern and affordable way to buy amazing properties in destination markets, without any of the challenges that comes along with homeownership. Solreva acquires elite homes in these destination markets which they then break up into eight real estate interests. Depending on how much time a customer wants to spend in that market and how much of a home they want to purchase from 50% to 12.5% of the property.
As a fractional ownership company, it is important to understand the average amount that people would be willing to invest when they think of purchasing a luxury second home. The average wealth of a person who is planning to invest into a luxury second home is approximately $55,00,000. The average income of an individual who is planning a purchase is around $6,03,000 and a luxury second home costs approximately $23,00,000.
Although the idea of fractional ownership may be relatively new in India, it will continue to be a significant part of real estate investing. Fractional investments have gained considerable popularity on international markets like those in the United States, Canada, China, Singapore, and Hong Kong. The ability for every generation of Indians to participate in and diversify their real estate, which was previously confined through the traditional path, and most did not have the financial wherewithal to do so, is made possible by the growing popularity of fractional ownership in the real estate market.
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