Introduction to service area:
Many of Infospectrum’s clients have highly specific requirements, which require us to use our sector knowledge and high-level market contacts to produce a more tailored product. Such bespoke work is fully discussed with our client, and quoted, before we proceed.
Inforspectrum was commissioned by a banking client to assess the prospects for a Europe-based oil trading company which was embarking on a strategic change of direction. The company in question had traditionally sourced oil from Russia for distribution to clients in Europe, but had found itself increasingly squeezed out of its core markets due to the consolidation at the top of the Russian oil industry. The company’s latest accounts showed a loss-making position. The management’s response was to redirect their focus to Nigeria as the company’s main market for sourcing oil. Infospectrum was employed to assess the viability of the company’s new business plan.
How did InfoSpectrum proceed?
In the course of the research, in-depth face-to-face interviews with the management of the company in question were carried out, as well as interviews with the company’s would-be counterparts, its historical trading partners, and the banks which had been nominated to provide the funding to allow the company to make its intended transition into the proposed new market sector.
What were the impacts?
At the time of our initial research, the key issue identifies was that the funding, and therefore the company’s ability to progress to the next stage of development, was dependent on the proof of contracts being issued. While it was found that the company had a generally good historical record, crucially it had not secured any firm contracts to enable it to enact its plans concerning Negeria at that stage. It was therefore unable to provide the necessary confirmation. Subsequently, the company was able to move forward by using a potential suppliers’;s declaration of interest as proof to the bank that the business plan could be executed. However, the company did not pass the due diligence process, and the business was therefore rejected by our client.