Article | Intelligent Investment
Buy, Sell or Grow
Using Analytics to Support Brand Investment Decisions
In the Private Equity industry, making quick, instinct-based decisions is an expensive risk given the competition for quality brand partners. Fortunately, with data and analytics, today’s investors can make more informed decisions when considering acquiring or selling a brand, or exploring the potential of an existing portfolio.
If you are analyzing a prospective acquisition or assessing your portfolio, understanding how much you can expand without cannibalizing other locations is key to a successful growth plan.
Where to begin
You may be considering several options to assess a brand’s strength as part of acquisition due diligence or to determine its value for sale. Our recommendation is to first conduct a White Space Opportunity Analysis. Depending on the number of units for analysis and the accessible performance metrics, the level of analytics will vary.
Validate Your Instinct Using Science
Whether you are evaluating brands to buy, sell or expand, a White Space Analysis will help you make data-driven decisions by providing analyses on your customers, how big the brand can grow and where to find the best opportunities. It will allow you to evaluate real estate opportunities and markets for future growth and create a development blueprint to validate your instinct and confidently make investment decisions.
As part of a White Space Analysis, we include customer lifestyle analysis and trade area development to help understand your brand’s ideal customer and capture areas. Upon receipt of required data, a White Space Analysis is completed in a short timeframe, offering a quick, data-driven solution for investors to use in decision making.
If you are seeking to acquire a brand and do not have access to performance metrics, or if your brand portfolio is less than 50 units, a non-predictive composite index using strategically relevant factors can be used to create a scoring engine to analyze markets across the country for new location possibilities. Scoring hypothetical real estate opportunities for future growth potential will help maximize revenue from each new unit opened, and minimize the impact on surrounding existing units.
Get deeper insights with predictive analytics
If your firm has access to performance information for more than 50 annualized brand units, a performance forecasting model can be developed to enhance your analysis and predict how new stores will perform, giving you deeper insights on a brand’s potential.
Additionally, we produce a Network Performance Scorecard that compares a brand’s existing units to the performance model—allowing you to view which units are over—or under-performing, providing critical information to inform your next steps.
If you are evaluating retail, restaurant, or consumer services brands to buy, sell or expand, a White Space Analysis will help you make informed decisions by providing insights on your customers, growth potential and where your best opportunities are located.
We’ve acquired the brand, now what?
Based on the number of brand units with required data for analysis, there are several solutions that can be applied to growth strategy post-acquisition.
A fully customized mapping and reporting system provides an easy-to-use, interactive platform for growing brands to analyze and manage portfolios and development. For additional insights, Market Optimization adds analysis that evaluates and prioritizes markets across the country to produce a strategic roadmap for market planning and resource allocation.
An analysis using Peer Comparison weighs similar existing markets and analog units against potential sites. This analysis provides multi-factor scoring to aid sales estimation and takes your real estate planning options to the next level.
For established brands with at least 50 units, Predictive Modeling can determine the unique factors that directly correlate to your existing units’ performance which can be used to predict how new units may perform. Using a variety of modeling techniques, including machine learning and statistical regression, predictive analytics allow you to generate forecasts to provide the critical information you need for a successful real estate application.
Ready for a White Space Analysis? Get started today
A White Space Opportunity Analysis combines industry expertise and data analysis using our exclusive algorithm to produce an optimized development blueprint that identifies and scores hypothetical opportunities for growth with low sales transfer risk. You can visualize and share the results in real time across your organization with our cloud-based mapping platform. Reporting includes relevant benchmark, market, and competitive index data, along with scoring engine results for further internal analysis and distribution—giving investors actionable intelligence to make data-driven portfolio decisions.
Kick your brand assessment into high gear with a White Space Analysis. Contact us today to learn more or to get started.