Choosing an Orderly Exit in the Pet Care Industry
The European pet care market has seen significant growth in recent years, driven by premiumization, digital services, and changing consumer behavior. In this context, a young startup, referred to here as Project Willow, was launched with the ambition of building a technology-enabled pet care platform combining services, subscriptions, and localized operations.
The vision was attractive. Market realities proved more complex.
The challenge
Project Willow had progressed beyond the idea stage. The company had:
Built an initial product and service offering
Tested demand in several local markets
Engaged in early discussions with partners and potential investors
However, as operations unfolded, several structural issues emerged:
Customer acquisition costs were significantly higher than initially projected
Unit economics remained negative despite multiple pricing and operational adjustments
Operational complexity grew faster than revenues in a fragmented local services market
The capital required to reach break-even exceeded realistic fundraising prospects
The founding team faced a critical question: continue raising capital to sustain uncertainty, or reassess the viability of the model.
Our intervention
Genki International was engaged under an advisory mandate internally referred to as Project Clearpath.
The objective was not to force continuation, but to provide an independent, fact-based assessment of the company’s strategic options.
1. Objective business and financial assessment
Under Project Lens, we worked with management to:
Reassess unit economics under multiple realistic scenarios
Stress-test growth assumptions and capital requirements
Evaluate operational scalability and risk exposure
This analysis removed emotional bias and clarified the true economic profile of the business.
2. Scenario analysis and decision support
Through Project Crossroads, we supported the founders in evaluating three scenarios:
Aggressive continuation with additional fundraising
Partial pivot with reduced scope and market presence
Orderly wind-down and closure of operations
Each scenario was assessed against capital needs, execution risk, and shareholder impact.
3. Executing an orderly closure
Once the decision to close the company was made, under Project Resolve we assisted with:
Structuring a controlled wind-down plan
Managing stakeholder communication (employees, partners, shareholders)
Preserving value where possible through asset and IP disposition
Ensuring legal, financial, and reputational matters were handled properly
The focus shifted from growth to responsibility and clarity.
Key outcomes
As a result of this process, Project Willow achieved:
A timely and controlled closure, avoiding value-destructive last-minute decisions
Transparent communication with all stakeholders
Protection of founders’ and shareholders’ reputations
Valuable strategic and operational learnings carried forward into future ventures
While the company did not continue, the decision prevented deeper losses and enabled the founders to move forward with clarity and credibility.
