Business Strategy & Pre-IPO Planning for Oil Palm Downstream Company

Due to its rapid growth in business, the client recognized there is an imperative need to devise a business strategy that will navigate the company for its future growth as well as a Pre-IPO plan that will prep the company for its listing exercise. 

We brought in our strategic business planning service to help client to better strategize their 

  • corporate direction
  • organizational structure  
  • financial planning for future expansion and listing requirement.

The situation:

  • various operation processes that was being done manually 
  • lack of standard operating procedures to guide the production of oil palm harvesting tools

The client did not realize the significance of the problem as the business was growing fast and the situation had not affect the business performance yet. We were determined that for the company to be sustainable in the long run, it would require a leaner and standardized business process.

Our recommendations:

  • to streamline the reporting and production processes
  • to establish a standard operating procedure which documented the business processes in a format that is convenient as reference to all personnel

Leveraging on our deep understanding in the palm oil industry and benchmark against the competitors, we also evaluated the following:

  • business and contracting model
  • product variation 
  • pricing strategy 

Backed by a comprehensive research, we recommended three new contracting models for the palm oil harvesting tools that could help the client secure longer term contract and steady cash flow for working capital. 

These new contracting models leverage on the concept of asset leasing and join venture partnership with the end users. Additionally, we developed a full-fledged financial model to simulate the financial profile of the business under each scenario for pricing purposes. This resulted to a greater confidence level towards the proposed strategies. A carefully curated financial planning for the company will then determine a successful IPO exercise.

By the end of the project, we prepared a 5-year strategic business plan backed by a comprehensive research, competitor analysis, expansion strategies as well as financial simulation. This business plan shall serve as the navigator that guides the company in its future expansion.

Talk to us about your company future. Email jasmin@27advisory.com.my