Greenfield Business Building
We developed an in-house approach to building value for investors "going Greenfield"
Starting a business from scratch in Russia may still sound daunting for potential investors. Many companies automatically resort to acquisition as they feel more comfortable with or used to this way of expansion.
Yet in the reality the potential for value-creating acquisition in your particular segment may virtually be zero. At the same time the fears of costs and timing of a Greenfield project may be somewhat exaggerated or come from people, who for various reasons had experienced mainly the dark side of the matter.
Investors usually face typical deterrents when considering Greenfield :
- Unclear market potential and fuzzy benefits of new business building
- Availability of sites in strategic locations with required infrastructure and technical features
- Costs related to site acquisition, unclear rules and processes
- Lack of resources to manage the process
- Long set-up time, expensive construction.
Recommending a Greenfield option comes as a result of a thorough analytical approach taking into account all the reasonable alternatives, risks and benefits for your company. Our methodology, experience and skills allow efficient dealing with the principal deterrents and achieve superior positive impact on your business value:
- Robust economic and market justification. Clear financial benefits case. Solid understanding of the practical aspects related to your company’s functional set-up (sourcing, production, sales, marketing and distribution)
- Optimized location selection process, efficient sites identification and reliable assessment
- Securing political support and possible tax benefits for your project
- Project Management set-up and processes minimising Client resource stretch
- Coordination of implementation and proactive problem-solving, "on time and to budget" result.
While embarking on a Greenfield with Strategica you build your strategic assets and capabilities simultaneously. By the time your facility is commissioned you will be also fully equipped with the required tools, functional strategies and knowledge for fast and profitable growth. The following Greenfield advantages should outweigh the potential benefits of an opportunistic acquisition:
- Your assets are optimally configured to support your Vision and Business Idea
- Investors have full confidence in your capabilities to deliver profitable growth
- No transformation slow-down or unexpected costs. Fresh team and skills matching your strategic objectives
- Freedom and flexibility to expand and adapt to changing business requirements. Complete ownership and control of the value-chain
- No technological compromise, "cutting edge" and "do it right" principles at work from the outset.
Examples of referenced Greenfield projects of Strategica team members
