Overview – A private equity group purchased a family business with intent to take it public. Company is a US manufacturer and distributor of B2B products.
Primary Issues – In the prior year leading to the sale, the seller inflated the EV/EBITDA ratio by slashing SG&A and eliminating most white collar positions leaving only a small operating team in place to keep the factory running. The price the Buyer paid didn’t match the business value. Additionally, the company products were dated and sales were declining. The remaining staff were decimated and demoralized. Analysts did not view an IPO favorably.
Statement of Work –
Filled functional gaps in Client roster
Rebuilt Marketing, Engineering, and Quality functions and implemented best practices
Implemented Sales & Operations planning to align Sales forecasts to factory planning
Rebuilt end-to-end supply chain with qualified suppliers and favorable contracts
Redeveloped and qualified deficient internal Mfg processes to industry standards
Rapidly developed and introduced new product portfolio
Increased company value by 27% which led to a profitable sale
525 Vine St. Unit 1, #941
Cincinnati, OH 45201
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