Financial plan and valuation of a multi-concept gastronomic project led by a renowned chef
Summary
ST strategy supported the promoters in preparing the project’s funding round.
Large gastronomic projects increasingly combine fine dining, casual dining, retail and events in a single venue. Their viability depends on rigorous financial planning for each concept.
GastroConcept* is a new gastronomic venue in central Barcelona promoted by a Michelin-starred chef and his partners, bringing together a fine dining restaurant, a Catalan cuisine restaurant, a tapas bar, a gourmet shop and a cocktail and events space.
ST strategy prepared the financial plan and valuation of the project for its funding round.
Hospitality
Financial plan and valuation
Round preparation
The full story
Opportunity
The promoters needed to raise funds to execute the project while keeping control. They required a solid financial plan and a defensible value range for investors.
Recommendations
Based on the analysis carried out by ST strategy, the tools to go to market were prepared:
- Financial plan: Income statement per concept and consolidated, balance sheet, monthly cash flow with peak funding needs, debt module and investor returns.
- Valuation: Approximation of value using four methods (discounted cash flows, venture capital method, comparable transactions and listed comparables), based on the analysis of more than 400 sector transactions.
- Round structure: Recommendations on round size and on combining equity and debt to limit the promoters’ dilution.
* The confidentiality of our clients is a priority of the company. Although we have changed their names, the information is real.