The Situation

A leading tattoo removal provider with a retail location in a major metropolitan area had proven its model with a highly profitable flagship store. The founders desired to raise up to $3 million in capital to expand into three new major metro areas by building a total of 10 new stores in a three year period. They needed help building a detailed financial model and confidential information memorandum (CIM) to support their thesis and present to investors.

The Execution

• Pinewood prepared a detailed three statement financial model with 7 year projections, various drivers and assumptions, and flexible inputs for rapidly changing assumptions around rents, labor costs, and operating costs.

• Built management dashboard for ongoing metrics analysis with ability to update financial model with ease

• Built discounted cash flow analysis (DCF) to support valuation and investment terms

• Improved Management’s 40+ page Confidential Information Memorandum

The Results

After multiple revisions due to COVID uncertainty and changing market conditions, Pinewood worked hand in hand with company management to prepare the materials they needed to pursue investment from family offices and institutional investors for debt and equity financing. They have secured their second location and have multiple interested parties with high interest and ample access to capital to help the company expand to 10 locations and beyond.