by Ben Wilson
Our Consulting team‘s complex business modelling unlocks $21 million in funding for a tech & robotics startup.
The technology & robotics company developed an innovative robot with the potential to transform the way mining activities are conducted in Australia. The Directors of the company had secured an in-principle agreement with a Tier 1 mining firm to implement over 90 of these robots on their sites over the next 5 years.
An advanced strategic model and per-asset cashflow schedule was required by the bank for financing, and adding further complexity, the bank was offering escrow financing on the construction of the assets with conversion to chattel mortgaging at the date of completion.
How We Helped
The directors engaged with Lambourne Partners Consulting to provide an in-depth strategic model for business performance, and cash flow on a per-asset basis. Due to the depth and complexity of the bank’s requirements, no internal staff were able to complete these projections.
After consultation with the CEO, we were able to build a thorough operating model, factoring variable and fixed costs relating to the construction and hire of the robots. Our forecasting methodologies were aimed to isolate individual costs, and build up the entire business profile from the ground up, based on the requirements.
We determined that customised templating and calculation methodologies were appropriate for the business, due to the number of assets, individualised nature of the finance offer, and escrow arrangements involved. The model constructed was broken down to the individual assets, on a line-by-line basis. This allowed the bank and stakeholders to drill into the projected balances of loans of each asset, and adjust the monthly required repayment based on the completion dates of assets. The model factored in the multiple asset types available, and varying construction and maintenance timeframes for each.
After presenting the model to the bank, the project was given full approval to commence.
The funding achieved through this process was over $21 million in total to be provided over 36 months.