Challenge:
- The client acquired a sub-optimally performing stockbroking business to complement its non-bank financial service range consisting of asset management, investment management, real estate and pensions
- The task therefore, involved developing a turn around strategy for the acquired stockbroking business
Approach:
- Conducted industry sector research and developed a business strategy that was designed to optimise potential synergies across the group
- Developed a new structure that was used to successfully integrate applications and processes
- An aggressive time frame for implementation was adopted in order to rapidly realize the cost benefits of the merger
Value Provided by Quramo Advisory:
- We developed an integrated business model – Brokerage/issuing house/investment mgt/research
- Created an organisational structure that would take advantage of the largely untapped retail market where opportunities abound in the informal market
- Positioned the group to cross-sell brokerage products to existing asset management clients and vice versa.
- Focused the business development strategy to take advantage of the large underserved institutional market
Client Benefits:
- Prior to the acquisition, stockbroking was outsourced and income was conceded to external service providers that were also not as responsive to client needs. However, following the acquisition, the client is now able to take advantage of the financial and resource efficiencies of owning a stockbroking business.