Business Plan for Downstream Retail Station Expansion

Retail Station Expansion Business Plan
Business Plan for Downstream Retail Station Expansion B2MASTER 12:45 pm

Project Info

Client SPOG Petrochemicals
Skills Retail Expansion Business Plan | 2017

Project Description

Project Description

SPOG Petrochemicals Limited, a prominent company in the Downstream Sector. The company intends to commence a Downstream Retail Station Expansion Project.The main project to be done on behalf of SPOG, would involve the Business Plan for the conception, financing and execution of the 40 retail stations around Nigeria within the next 24-36 months (“Project 40”).

Actions Taken

Upon completion of this assignment, we were able to achieve

  • A clear articulation of  Project 40’s long-term strategy, its target market share and estimated future capital needs  is well documented.
  • A commercial argument for the client’s growth strategy including a through a market competition analysis around the development  of  Retail Service Stations in Petroleum Marketing Nigeria is presented
  • A Comprehensive Business Plan which communicates the inherent value of Project 40 is developed, including but not limited to:
    • Estimated project costs,
    • Financing plan,
    • Economic benefits (jobs, capacity, trade volume, foreign exchange where applicable, etc),
    • Environmental impact,
  • A robust financial model of the transactions future earnings and cash flows, incorporating key assumptions of its future growth strategy is developed;
  • Dealer / Operator Assets Modelling
    • Profit Generating assets – Dealer/Operator have option of using Net Book Value of assets (SARS spec) as fair value or clean profit formula.
    • Non profit generating assets – negotiated between Seller & Buyer dependent on business need (outside formula).
  • New sites / Upgrades  CAPEX
    • Property Department or Roll out team will engage Dealer on related costs prior to project commencement.
    • Costs differ on requirements and needs to change.
    • They are payable before takeover
  • Rigorous sensitivity tests are carried to examine key assumptions, forecasted industry information as well as key performance ratios is performed