Client’s Challenging Situation:
A talented group of marketing experts needed a few million dollars to pay for expanded retail energy marketing initiatives. Without the money, the marketing initiatives would fall short of go-to-public targets and the marketing company would, at the very least, struggle.
Scope of the Problem:
The retail energy marketplace was struggling with an escalation of dysfunctional field sales activity that seriously marred energy retailers’ credibility. Increased regulatory oversight was in the cards while the energy marketing community struggled to self-regulate. We were concerned about the possibility of stiffer application of laws. Traditional financial institutions kept their distance and loans for entrepreneurial energy marketing were not available. For many who wanted to grow businesses, it was a messy situation.
My partner and I called on our supplier and client relationships to orchestrate a creative deal that brought funds to the marketing company in exchange for an interesting supplier/consulting deal that, if successful, would yield material value to both the lender and the borrower.
The Value Delivered:
The plan succeeded. The value generated for our colleagues turned out to be over $1,000,000,000.