Aziz Saif · Sanitized Case Study
Home AI Reports Running Stores Acquisition
Retail · Acquisition · Sanitized Case Study

Running Stores — Acquisition Feasibility

A family-owned 9-store value-fashion chain on the market after a generational transition — due diligence & post-acquisition P&L model.

GCC · 9 stores 9 stores · 3 cities Acquisition Memo
AED 7.5MIndicative Price
AED 24MCurrent TTM Revenue
3.8xEV / EBITDA
4 yrsPay-Back Model

The ask

Client was evaluating a 9-store fashion chain on the market post-succession. Seller's accountant had a basic P&L; no lease schedule, no store-level margin detail, no inventory age profile.

Problem

Seller-side data gaps

Key unknowns: store-level margin, lease expiries, inventory age, staff transfer risk. Classic succession sale with under-invested back office.

Opportunity

Below-market multiple

Indicative 3.8x EBITDA was below the 5-6x comparable range for GCC fashion retail. If the data gaps closed benignly, the deal was cheap.

🔒
Fully sanitized. Client name, store name, exact locations & trading figures have been scrubbed. Industry, scale, deal structure & feasibility framework are preserved so you can see exactly how the work is shaped.

How we built it

A 5-step repeatable process — from brief to investor-ready pack, powered by AI across financial modelling, market sizing & narrative writing.

Data room checklist & demands

Built a 12-workstream data-room request covering lease, staff, inventory, tax, banking, supplier contracts, IT.

Store-by-store profitability rebuild

Rebuilt 9 store-level P&Ls from raw POS data — exposed that 2 stores were loss-making under fully-loaded costs.

Inventory aging & markdown reserve

SKU-level age analysis showed 18% of inventory was 12+ months old. Markdown reserve of AED 650k built into the offer.

Post-acquisition P&L & synergies

Year 1 post-acquisition model — close 2 loss stores, centralise buying, renegotiate 3 leases. EBITDA uplift of 40% by Year 2.

Offer range & term sheet draft

Offer band AED 6.2M – 7.1M with earnout on inventory realisation. Term sheet drafted, lawyers briefed.

What went into the investor pack

Each row is a finished tab, slide or one-pager handed to the client — ready to share with lenders, investors or JV partners.

💼
Executive Summary

One-page investor-ready narrative

💵
3-Year P&L Model

Revenue, COGS, opex, EBITDA by month

📊
Break-Even Analysis

Month-by-month to break-even point

🏗
CapEx Breakdown

Fit-out, equipment, licensing & launch

🎨
Data Room Checklist

12-workstream DD framework

🛠
Inventory Aging Analysis

SKU-level markdown model

📈
Sensitivity Analysis

Best/base/worst case with levers

🏆
Offer Term Sheet Draft

LOI-stage commercial terms

What the client walked away with

Client submitted offer at AED 6.4M with AED 700k inventory earnout. Seller accepted subject to final legal. Transaction completed 4 months later.

Signal

Deal closed AED 1.1M below indicative

Store-level P&L rebuild revealed the two loss-makers — a discount the seller ultimately accepted because the data was unambiguous.

Signal

Markdown reserve materialised

18 months post-close, realised inventory markdown came in at AED 590k — within AED 60k of the model forecast.

Need something similar?

Feasibility studies, investor pitches, P&L models & market sizing — built with AI in 48 hours, reviewed by 37+ years of GCC retail experience.

Book a Call With Aziz →