RightSmith Consulting Project -- Case Study
RightSmith focuses on licensing exceptional video footage to both local film production companies and global players in the film industry. They understand how to connect creators and media professionals to content that is used in film, television, and online media. Today, they have over 6,000 hours of footage online, generated by a network of 800 contributors. Their stock footage collections appear in hundreds of movies and trailers such as the James Bond Spectre movie trailer, the trailer for the movie "The Day the Earth Stood Still", or the Oscar nominated movie "The Big Short".
RightSmith, a marketplace for stock video footage, was evaluating a handful of acquisition opportunities but did not have a full-time CFO to aid with the process. They were also looking for a financial projection model and a consolidated historical financial model that rolled-up 4 subsidiaries in 4 separate countries, to aid in the financial evaluation of potential acquisition partners.
Why Did RightSmith Approach Cordes Consulting?
RightSmith was looking for a strategic financial consulting resource that had experience with diversified software businesses and an internationally-focused offering. Cordes Consulting has expertise in both areas and has significant experience evaluating and executing M&A transactions.
What Did Cordes Consulting Deliver?
Cordes Consulting provided a financial model of the business with future projections, a roll-up of historical financials from each subsidiary in the parent company's currency, and continue to actively support the business on acquisitions and other financially-focused initiatives. The model provided RightSmith with visibility into their current financial performance and allowed management to test various operating strategies incorporating financial projections from potential acquisition targets. This information was critical to evaluate the financial impact of incorporating acquisition targets into the RightSmith business. Particular attention was paid to future projections, valuations, and the impact on cash flow.
What were the Results of the RightSmith consulting project?
RightSmith successfully completed the acquisition of Framepool, a European stock footage company, and continues to evaluate additional acquisitions compatible with their business strategy.