FTSE Listing IPO
The Royal Mail IPO was a significant event in the history of the company and the UK economy. In order to facilitate the IPO, the company needed to develop a strategic planning model that would be able to incorporate a wide range of inputs and variables in order to accurately forecast the company's future performance.
To build the model, the company turned to Excel, a widely-used tool that is known for its flexibility and ability to handle large amounts of data. The model was built to include both macro and micro economic variables, as well as inputs from across the organization. This included data on consumer preferences, which were shifting towards ecommerce and parcels as the use of letters declined.
£3.3bn valuation
Excel-based strategic model
Largest European IPO of 2013
The model generated a 5-year revenue and cost model, which highlighted the company's profitability as it adapted to the changing business environment. It was carefully scrutinized by a range of stakeholders, including investment banks, consultants, government ministers, advisory bodies, and regulators.
Overall, the Royal Mail IPO was deemed a success. The UK government netted £2bn from the sale of its stake in the company, and shares rose 38% on the first day of trading. The success of the IPO can be attributed, in part, to the thorough and accurate strategic planning model that was developed to support the process
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