Case Study: Accelerating Portfolio Investment Growth

A global IoT company, with a highly visionary leader and valuable product, brought on LDR to devise a growth strategy consisting of capital management, technology acquisition, and global market entry.

Advising an IoT Company on Capital Allocation and Growth Strategy

Opportunity

An IoT company struggled to generate positive cash flow and lacked the technological resources to differentiate itself in an increasingly competitive market, despite having a well-developed vision, innovative end-product, and strong internal assets. With difficult decisions regarding capital allocation and operations, the company called on LDR to provide an opinion on capital allocation and execute on new growth opportunities.

Solution

LDR conducted a thorough analysis of the company and its market. The analysis found the company had unique proprietary technology and visionary leadership, and could secure a market leading position through additional technology acquisition. LDR used a two-pronged approach: (1) immersive industry diligence to identify problems and opportunities, and subsequently, (2) tight integration with management to advise on acquisitions and international growth strategy. After identifying key problem areas and potential opportunities for value creation, LDR helped the company devise and execute a comprehensive growth strategy and financial blueprint.

Result

With a roadmap in place, the company’s management team worked tightly with LDR to execute the growth strategy, which included assessing acquisitions, priorities and global market opportunities. LDR facilitated a $20 million investment that significantly increased book value and blocked out major institutional competitors for 24 months.

Favorably positioned among competitors for its rapid and stable growth, the company entered a funding event at a valuation of nearly $1 billion. Following the intensive execution of this near-term growth strategy, LDR continued to provide regular, low-touch advisory services to the management team as it continues to cement its position as a market leader.

After just two years of initiating its new growth strategy, the company increased its sales partnership locations and earned a market valuation of nearly $1B.

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