Fintech advisory case studies | DNYC Ltd

A UK-based shareholder group holding a Polish-incorporated VASP providing stablecoin brokerage services engaged DNYC to support a sell-side process to a Singaporean acquirer — a complex tri-jurisdictional transaction in a sector where regulatory uncertainty routinely erodes deal value.

the challenge

The central risk was valuation erosion during buyer due diligence. In VASP transactions, buyers routinely use regulatory uncertainty as leverage to chip away at agreed prices. The shareholders needed a financial narrative that was not only credible but pre-emptively addressed the questions a sophisticated buyer’s legal and compliance team would raise — before they raised them.

The approach

DNYC developed a financial model linking the business’s revenue trajectory and margin profile directly to the requested valuation, giving buyers an evidence-based narrative rather than a number to challenge. A comparable transactions analysis benchmarked the deal against relevant fintech M&A precedents, establishing market context. The decisive intervention was a build-versus-buy analysis that quantified what a buyer would spend — in licensing fees, compliance infrastructure, and delayed market entry costs — if they pursued direct regulatory authorisation rather than acquiring an already-licensed entity. This reframed the acquisition from a price negotiation to a strategic necessity. Working alongside legal advisors, DNYC also supported the Change of Control process proactively, anticipating regulator questions before they arose.

The outcome

The business was valued at €12m on a 2x revenue multiple. The build-versus-buy analysis shifted the buyer’s framing from price justification to strategic rationale, protecting the valuation through negotiation. The Change of Control application is ongoing with no material regulatory objections raised.

A Maltese-incorporated VASP operating as an OTC crypto broker, owned by UK-based shareholders, engaged DNYC to lead its end-to-end authorisation process under the Markets in Crypto-Assets Regulation (MiCA) with the Malta Financial Services Authority (MFSA), one of the first cohort of applicants navigating the new EU-wide regime.

the challenge

Most businesses and their legal advisors were encountering for the first time entirely new documentation and governance requirements. The client needed a business-strategy partner who could translate regulatory obligations into coherent operational documents, rather than simply producing legal text that satisfied form but not substance. The risk of a poorly scoped application was not just delay, but creating a competitive disadvantage against peers navigating the same transition.

The approach

DNYC began with a strategic review of the client’s existing business model, advising on which regulated services and crypto-asset activities to include in the application scope.

This triage that materially shaped the legal advisors’ work downstream. DNYC then produced detailed client journey maps and fund flow documentation demonstrating robust segregation of fiat and crypto-asset client funds.

Core policies were drafted from scratch, including an order execution policy, a best execution monitoring plan, client asset segregation procedures, and governance documentation covering oversight structures. A business continuity policy tailored to the specific risk profile of a crypto-asset service provider completed the operational evidence pack.

DNYC also interviewed and vetted prospective key personnel for regulatory fitness.

The outcome

Application submitted to the MFSA on time, with an expected first-year transaction volume of €1bn and corresponding revenue of over €3m.

A UK-shareholder-owned Maltese VASP engaged DNYC to lead the financial planning workstream of a regulatory licence application — providing the quantitative rigour that legal advisors are not positioned to deliver, and ensuring the application presented a financially credible narrative alongside the legal documentation.

the challenge

Regulators do not accept optimistic growth projections: they require evidence that a business has genuinely stress-tested its financial position and understands its vulnerabilities and its surrounding environment. The client’s legal team could structure the application, but neither the in-house team nor external counsel had the financial modelling expertise to produce the three-year business plan, scenario forecasts, and prudential capital documentation the regulator required.

The approach

DNYC prepared a full three-year business plan for regulatory submission, anchored by a scenario forecasting framework with Base, Downside, and Worst-Case projections, demonstrating that the business had genuinely interrogated its financial vulnerabilities. Granular transaction volume projections were broken down by regulated product and service line, giving the regulator transparent visibility of the expected business mix. On the prudential side, DNYC produced comprehensive projections covering permanent capital requirements, liquidity positions, and segregated client fund obligations, linked directly to the business plan to create an internally consistent financial picture. DNYC then drafted the Prudential Safeguards Planning and Monitoring Policy, a board-level governance document subsequently adopted formally by the client’s board.

The outcome

The financial submission was accepted as part of the wider licence application. The board-adopted prudential policy demonstrated institutional commitment beyond the application itself. Base case projected equity value of €1.5m by 2026; pessimistic scenario €600k, a range the regulator accepted as credible and well-reasoned.

The British founders of a crypto-asset service provider with significant USDT operations engaged DNYC to advise on the optimal offshore incorporation and licensing strategy — a multi-jurisdiction decision combining regulatory expertise, financial modelling, and commercial strategy that could not be resolved by legal opinion alone.

the challenge

The founders needed to identify the right jurisdiction(s) from a wide field spanning the EU, UK, Gulf countries, the Channel Islands, and the Caribbean. Each carried different regulatory requirements, application costs, ongoing compliance burdens, and strategic implications. The wrong choice meant either a licensing process incompatible with the business model or a jurisdiction that limited future growth. No single legal advisor could evaluate all dimensions objectively.

The approach

DNYC conducted a structured evaluation of all candidate jurisdictions using a consistent framework: regulatory compatibility, application costs, projected ongoing compliance costs, and alignment with the client’s growth trajectory. This narrowed the field to two credible fintech hubs — the Cayman Islands and Jersey. DNYC then built a flexible financial model enabling the founders to interrogate different scenarios as business assumptions evolved. The strategically significant insight was a structural split: routing Americas clients through the Cayman entity and EMEA clients through Jersey, optimising regulatory fit by market. DNYC supported preliminary regulator engagement in both jurisdictions and assisted with recruiting permanent in-jurisdiction staff to meet substance requirements. Both applications were filed simultaneously.

The outcome

The Cayman Islands licence was granted in August 2025, with an expected annual transaction volume of €600m and first-year revenue of €1.5m. The Jersey application is ongoing. The dual-jurisdiction structure positions the business to serve both Americas and EMEA clients from appropriately regulated entities.

A Denmark-incorporated card acquiring and issuing business with significant UK operations engaged DNYC following a critical assessment that its risk and compliance framework had fallen materially short of board expectations — placing the business’s regulatory standing and financial viability at risk.

the challenge

The business faced simultaneous regulatory, commercial, and financial pressures. Its merchant portfolio contained unacceptable risk concentrations. Its compliance processes had failed. Its three-year business plan no longer reflected operating reality. And the restructuring required to fix these problems was creating liquidity pressure that threatened the business’s ability to continue trading. Legal advisors and KPMG were engaged, but neither was positioned to deliver the integrated financial and strategic response the situation demanded.

The approach

DNYC’s first priority was derisking the merchant portfolio — supporting management in exiting contracts with unacceptable risk profiles and facilitating orderly transfers to partner institutions. For retained merchants, DNYC project-managed a full re-KYC programme and renegotiated commercial pricing to ensure elevated risk and compliance costs were reflected in margins. In parallel, DNYC completely redrafted the three-year business plan to reflect a lower-margin operating reality — producing the financial evidence the regulator required to maintain confidence in the business as a going concern. To address the immediate liquidity crisis, DNYC reforecast cash balances, advised shareholders on a capital restructuring, deferred dividend payouts, and secured a bridge loan injection that kept the business operational throughout the remediation period.

The outcome

The business was stabilised and continues to operate. The revised business plan was accepted by the regulator. The capital restructuring provided sufficient liquidity to complete the remediation programme. Annual revenue of €15m was preserved. KPMG and Hogan Lovells served as co-advisors.