Case Study:
Valuation & Restructuring
Service
Strategic Advisory
Industry
Ride Hailing | Electric Vehicle
Client
MVLLabs
Country
Singapore | Cambodia
“TRIVE is a true partner for bringing impact to South East Asia. We appreciate TRIVE that we can work together not only for business building but also for philosophy of honest impact.”
— Kay WOO, CEO, MVLLabs
Client Challenges
A potential investor in MVLLabs lacks the expertise required for accurate company valuation, posing an investment challenge. Furthermore, the inefficiency of operating two core businesses under a single entity has also been identified as a significant concern.
The Outcome
The selection of an independent valuer facilitated MVLLabs in securing the investment. Concurrently, a restructuring to operate as two distinct entities was implemented, enhancing flexibility and capital efficiency.
Our Approach
Structural Independence with Strategic Coherence
MVLLabs was presented with an investment proposition from a Korean consortium lacking both a separate Corporate Venture Capital (CVC) wing and proficiency in investment valuation. Our firm, TRIVE, intervened to provide strategic guidance. We liaised with an array of independent valuers, clarified the intricacies of the Level 3 methodology, and ultimately identified a proficient appraiser to collaborate with MVLLabs.
Navigating Investment Valuation
Consequent to our recommendation, MVLLabs restructured into two distinct investment holding groups under the umbrella of MVLLabs Pte Ltd. The first entity, TADA Mobility Pte Ltd, took over the ride-hailing operations, and the second, Onion Mobility Pte Ltd, oversaw the EV business. This strategic segmentation allowed for precise, industry-specific accounting and analysis, facilitating each entity to independently pursue fundraising. For example, Onion Mobility Pte Ltd was subsequently able to independently position itself in the market as an EV provider.
Initially, MVLLabs managed two key operations – ride-hailing and Electric Vehicle (EV) production – from two geographical locations under one corporate entity. Despite the activities being interconnected, they were predicated on disparate operational metrics. In our capacity as strategic advisors, TRIVE advised a delineation of accounts, distinguishing the two branches of the business.
Consolidation versus Diversification
What we have learned
Value of External Expertise: Engaging external experts can ensure a rigorous and accurate appraisal process when potential investors are unfamiliar with valuation techniques.
Need for Operational Clarity: Companies operating diverse businesses benefit from clear segregation of operational units. This strategy enhances efficiency, financial analysis, and managerial oversight.
Advantages of Independent Fundraising: Creating a structure that permits subsidiaries to raise funds independently allows them to attract specific investors effectively and deliver more accurate value propositions.
What’s next?
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