Investors' Report

18
A NEW DAWN AT WISE PLANNER INVESTORS’ REPORT September 2015

Transcript of Investors' Report

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A N E W D A W N A T W I S E P L A N N E R

I N V E S T O R S ’ R E P O R TS e p t e m b e r 2 0 1 5

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Wise Planner Consulting43, AfriBank Street,Victoria Island,Lagos, Nigeria.M: +234 (0)70 406 03344E: [email protected]

W: www.wise-plannerconsulting.com

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• INTRODUCTION 1

• REVALUATION & EQUITY

PARTICIPATION 2

• ACQUISITIONS & EXPENDITURES 3

• THE RE-ORGANIZATION 4

• TRANSACTIONS 5-6

• MANAGEMENT CHANGES 7

• PROJECTIONS 8-9

APPENDIX

• VALUATION OF BUSINESS i-ii

• INVESTMENT & ENGAGEMENT

PROPOSAL iii-iv

T A B L E O F C O N T E N T

"To build a binding and continuous relationship with organi-zations seeking management support and provide them with continuous capabilities improvement”

OUR MISS ION

“A leading Management Consulting firm that helps or-ganizations to adopt proven contemporary management practices as a way of life"

OUR V I S ION

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It has been a rebirth at Wise Planner Consulting; a phoenix rising again. Wise Planner Consulting is founded

by Samuel O. Omole, a distinguished management consultant with over a decade of admirable consulting practice.

Inevitably, every business must learn to re-invent itself in adapting to the dynamics in time, taste and technology that easily

rendered the inflexible business obsolete. This Augean task belongs to the leadership of any organisation and the founder

of Wise Planner Consulting has taken up this task since the beginning of the present fiscal year in January 2015. The

leadership at Wise Planner Consulting seeks a total deviation from the status quo; a position wherein the business

has subsisted as one-man affairs. This makes the need for restructuring, recruitment and re-strategising imperative.

1W I S E P L A N N E R C O N S U L T I N G

I N T R O D U C T I O N

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The first step taken in the new direction is the revaluation of the business with the prospect of seeking equity participation. Rotimi

Olulenu & Co., the company's accountant, carried out the business revaluation. The business value as at January, 1, 2015 was put at

twenty-nine million naira (NGN29million). In the pursuit to quickly secure investor fund for the rebuilding of the business, the founder

decided to take the firm to the market at a discounted value of twenty-five million naira (NGN25million). He was successful to garner

equity interest from two investors; Oyemi Boardroom Limited and Mrs. Adewumi Wale-Akinrinde. Oyemi Boardroom

Limited represented by its CEO, Emmanuel Adeoye took interest in taking fifteen percent (15%) of the business at the sum of three

million, seven hundred and fifty thousand naira (NGN3.75million). While, Mrs. Wale-Akinrinde signifies interest in taking ten

percent (10%) ownership at two million five hundred thousand naira (NGN2.5million).

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R E V A L U A T I O N & E Q U I T Y P A R T I C I P A T I O N

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However, it should be noted that two investors have undertaken certain expenses on behalf of Wise Planner Consulting with the

agreement of Mr. Sam Omole which are in pursuant of securing strategic assets and/or services to facilitate the emerging new

structure of business operation at Wise Planner. These expenses are made against the solicited capital contribution agreed. As at

the last computation on September 07, 2015 these expenses include only:

1. Incorporation expenses at NGN200,000 financed by Oyemi Boardroom Limited.

2. July & August Consultant Salaries at NGN250,000 Oyemi Boardroom Limited.

3. July Research Analyst Salary at NGN100,000 Oyemi Boardroom Limited.

4. A lease of a car, Hyundai Tucson, for official purposes by Mrs. Wale-Akinrinde. The valuation of which is yet to be established.

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A C Q U I S I T I O N S & E X P E N D I T U R E S

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Consequent on the above, Wise Planner Consulting, has gone back to the drawing board to fashion a 5-year strategic plan. A plan

codenamed "transformation". It is a plan to completely transform Wise Planner into a full-fledge consulting firm for it target market;

the small and medium scale businesses. The focus of the strategic plan is on structures, solutions and synergies. Structures emphasize

a more organised approach to doing business invariably facilitating scalability. We are in business to provide solutions, top-class

solutions to facilitate best practices for our clients. Strategic partnership is a key part of our growth strategy, this begins with

integrating key professionals to facilitate a more robust service provision and adopting cutting edge third-party services that improve

our efficiency. Though, the management of Wise Planner Consulting has began a skeletal implementation of this plan, the intention is

to go full swing on the action plan by January, 2016. One of such preliminary steps taken by the management of Wise Planner is

securing the services of two analysts on freelance basis pending a more former arrangement. The first of the analysts resumed work

early in July while the second will start this month of September.

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T H E R E - O R G A N I Z A T I O N

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July, 2015 indeed, marks a new turn in the history of our firm. Wise Planner began a new approach to its business with the

aforementioned backings and supports. The last two months have seen us building bridges to small and medium scale enterprises and

their supporters/sponsors. Here below is the schedule of the projects we have in the pipeline and the status of each.

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T R A N S A C T I O N S

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6W I S E P L A N N E R C O N S U L T I N G

CLIENT PROJECT SUBMISSION DATE STATUS EXECUTION DATE FEE (NGN) NOTE

Fidelity Bank SME Academy 01 July 2015Commissioned NYF 1,500,000 Likely Execution in September

Gemstone/GTB Mentoring the Mentors 20 July 2015Commissioned 18-19 September, 2015 1,400,000 Seeded Facilitated by Gemstone

Gamsole The Animated Advantage 22 July 2015 Inactive

Zenith Insurance Gearing Zenith Insurance Corporate Culture 25 July 2015Partial Execution 22 August/22 September 750,000

1st part executed and paid for. NGN250,000

Sterling Bank SME Toolkit: Are you Profitable? 26 July 2015Commissioned NYF 400,000 Likely Execution in September

Direct Impact/NDIC Sustainable Banking Environmental & Social Risk Management 27 July 2015AIP* NYF 250,000 Fee is per 50 participants

Direct Impact/NDIC Financial Holding Company Supervision 27 July 2015AIP* NYF 250,000 Fee is per 50 participants

IDAN Organization Process Development for IDAN 31 July 2015AIP* NYF Pending Board Approval

UBA Metropolitan The Effective Executive 31 July 2015Commissioned NYF 600,000 Likely Execution in September

Sterling Bank Business Development Services for Sterling Bank MSME Customers 06 August 2015Still in process

Enterprise Bank Aligning to Post-integration Cultural Demands 10 August 2015DeactivatedEnterprise has merged with Heritage

Heritage Bank Business Acumen and Financial Intelligence for Bankers 10 August 2015Still in process

Sterling Bank ERP Solution for MSME 11 August 2015Still in process

Zenith Insurance Masterclass: Gearing Zenith Insurance Corporate Culture 27 August 2015Still in process

RBA RBA Exams/Revision Study Center in Nigeria 04 September 2015Still in process

Heritage Bank Aligning to Post-integration Cultural Demands 08 September 2015Still in process

Notes:

AIG Agreement In Principle

NYF Not Yet Fixed

T R A N S A C T I O N S

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7W I S E P L A N N E R C O N S U L T I N G

The highlights above have been the state of affairs at Wise Planner Consulting since the resurgence. The management

is happy with these developments and seek to push further the changes towards achieving our growth strategy. This new

push includes:

1. Upon the agreement of the investors the establishment of a specific date each month for the payment of overheads.

Which presently include the salaries of the management consultants and two analysts along with the allowance for

internet subscription. The management advise a standing order to this effect.

2. Submission of a quarterly report of business operations to the investors.

3. Incorporation of an Enterprise Resource Planning (ERP) software in our business process management.

4. The strategic participation of our investors in facilitating business transaction along their line of expertise.

M A N A G E M E N T C H A N G E S

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8W I S E P L A N N E R C O N S U L T I N G

The management of Wise Planner Consulting expects a busy and profitable next quarter. We look forward to more successful

commissions with our proposals in the pipeline. We intend to do more of our current proposition with financial and non-

financial entities to further establish our footprint with the sponsors and supporters of small and medium scale businesses. The

management also seeks to create a more dependable and stable cash flow. One of the steps in this direction include the

publishing of a quarterly entrepreneur magazine which we seek to begin within the quarter. Similarly, we look forward to the

following proposals creating a good cash flow:

1. Business Development Services for Sterling Bank MSME Customers

2. ERP Solution for MSME

3. RBA Exams/Revision Study Center in Nigeria.

P R O J E C T I O N S

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9W I S E P L A N N E R C O N S U L T I N G

Nevertheless, we are keeping expected monthly income generation conservative at one million five hundred thousand naira

(NGN1.5million). Equally, we intend to keep monthly overhead at or below twenty-five percent (25%) of revenue generation.

Currently our monthly overheard includes:

Summarily, the management of Wise Planner Consulting is happy to present this report of a new rising. It is our utmost belief that

with the backings already secured and the goodwill and network already created in years past, Wise Planner is well positioned

for better service provision to our target market and poised to create more sustainable value for all her stakeholders.

Thank you,

Sam O. Omole

Management Consultant

Management Consultant Salary 125,000

Analysts Salaries 180,000

Internet Facility 30,000

ERP 16,250

TOTAL 351,250

P R O J E C T I O N S

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W I S E P L A N N E R C O N S U L T I N G

APPENDIX

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iW I S E P L A N N E R C O N S U L T I N G

The business valuation was carried out using the following valuation basis:

P/E Ratio (Earning Basis)This is a common method of valuing a controlling interest in a company, where the owners can decide on dividend and retentions policy.The P/E ratio relates Earning Per Share to a Share’s value. The share price is N100.00 as shown in the following appendix. It shows apremium of N99.00 on the nominal value.

Earning BasisThis shows the value or price of the shares based on the earnings capability of the company. It provides the value, which an investor wouldpay in form of capital to partake in the portfolio of the company. The share’s price as per the appendix is N29.52. This shows a premiumof N28.52.

Net Asset BasisThis is the net worth of the business. This means the total assets, including goodwill, less all liabilities. This shows that if the company intoliquidation, a minimum price of the asset base should at least be realized bearing in mind the inflationary tendencies in the economy,which makes assets appreciate rather than depreciate in value. This is, however, based on the assumption that available assets arerealized at their historical costs, while all liabilities are settled at their book values. This basis gives a premium of N43.10. This implies thatthe company is not doing badly.

It should be noted that this method is normally used when a company is going into liquidation.

V A L U A T I O N O F B U S I N E S S A T 3 1 D E C E M B E R , 2 0 1 4

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iiW I S E P L A N N E R C O N S U L T I N G

SUMMARY OF THE METHOD USED

From the above, it shows the minimum price of N29.52 on the earning basis while the maximum price is on the basis of the P/E Ratio ofN100,00. The average of the above is three methods , however, shows a price of N57.80.

Our valuation of the company’s shares was based on the information contained in the audited accounts for the years ended 2014, 2013 and 2012. We have based our calculation on very conservative and modest assumptions.

CONCLUSIONWe recommend that the fair price of the shares of the company at 31 December, 2014 is N57.88 which is the average price arrived at using the P/E Ratio, Earnings and Net Assets methods.

Rotimi Olulenu & Co(Chartered Accountants)Lagos.13 March, 2015

V A L U A T I O N O F B U S I N E S S A T 3 1 D E C E M B E R , 2 0 1 4

N

1

P/E Ratio (Earning

Basis) 100.00

2 Earning Basis 29.52

3 Net Assets Basis 44.10

173.63

3 Year Average 57.88

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iiiW I S E P L A N N E R C O N S U L T I N G

Wise Planner Consulting seeks equity investment and strategic participation from OYEMI BOARDROOM LIMITED and MRS.ADEWUMI WALE-AKINRINDE (The Investors). With reference to the business valuation presented previously which stands at twenty-fivemillion naira (NGN25million). The equity investment on the offering is twenty percent (25%) of the current business valuation. OYEMIBOARDROOM LIMITED signifies the intention to take 15 percent (15%) of ownership at three million seven hundred and fifty thousandnaira (NGN3.75 million) while MRS. ADEWUMI WALE-AKINRINDE intends taking two million five hundred thousand naira(NGN2.5million) at ten percent (10%) of ownership. Consequently, The Investors are invited to take a stake each.

Wise Planner Consulting also look forward to their strategic participation in moving the firm towards achieving agreed goals andobjectives. The investment being sort shall be applied thus:

I N V E S T M E N T & E N G A G E M E N T P R O P O S A L

ANNUAL MONTHLY LUMP SUM

NGN NGN NGN

Motor Vehicle 1,500,000.00 1,500,000.00

Research Assistant 1,200,000.00 100,000.00

Managing Partner 1,500,000.00 125,000.00

Office Running 300,000.00 25,000.00

Existing Debt 350,000.00 - 350,000.00

Incorporation Expenses 200,000.00 - 200,000.00

Working Capital 1,000,000.00 80,000.00

Strategic supports 600,000.00 50,000.00

TOTAL 6,550,000.00 380,000.00 2,050,000.00

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ivW I S E P L A N N E R C O N S U L T I N G

The following are underlying assumptions:

1. Vehicle will be bought immediately to facilitate work flow which presently is being done on client sites and remotely.

2. Existing Debt will be paid upfront.

3. The Oyemi BoardRoom Limited will take on the incorporation expenses with CAC & FIRS after relevant preregistration documents are obtained from The Client.

4. Working Capital includes cost for ERP deployment and routine operating fees. The ERP to be deployed will cost N6, 250 per month and the routine fees of N10,000 per month.

5. Details of all pipeline projects must be submitted. All projects will be monitored using the Project Management Module of the proposed ERP Solution.

6. After the contract have been executed the investors with Wise Planner will seat to agree on projections in a strategic session

The following deliverables shall be expected:

1. Invoicing and Receivable Management

2. Payables Management

3. Weekly Management Report

4. Monthly Bank Reconciliation Statement

5. Monthly Tax Remittance

6. Development & Maintenance of Internal Control Policies

NB: THE ABOVE SHALL BE UNDERTAKEN BY THE INVESTORs AND THEIR REPRESENTATIVES.

I N V E S T M E N T & E N G A G E M E N T P R O P O S A L

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WISE PLANNER CONSULTING, SEPTEMBER 2015