Valuation of a PE investment in a Soccer Centre startup
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Assignment
We were approached to independently assess the value a PE investment in a soccer centre business backed by a prominent UK national team footballer. The business had Scottish origins and was founded on the lines of a PPP.
Our Approach
Outcome
We assessed the business strategy and the sustainability of the ramp-up plan after factoring the seasonality in outdoor sports in the GCC region due to climatic conditions. We then arrived at the cash burn rate until the business achieved a cashflow break-even.
In computing the unit economics, we evaluated the stability and sustainability of all four revenue streams of the business - bookings, sponsorship, F&B sales and events. We iterated this for each location and validated it through primary research.
We built a dynamic valuation model that enabled the founders to price multiple rounds of milestone-based fundraising.