Professional Accomplishments
Doubled Company Earnings & Orchestrated A Successful Exit
Situation
A 75 year-old company had been in the portfolio of a private equity sponsor for 3.5 years. Its performance was “flat” with no increase in sales or earnings since acquisition. Since the typical “hold” period for a private equity portfolio company is 3-5 years, the sponsor decided to devise a beneficial exit. He hired me as CEO to develop a winning change strategy and implement the exit.
The sponsor and the incumbent CEO, son of the founder, had a difficult relationship. Post-acquisition, the CEO and his management team continued their traditional actions and methods. Since nothing had changed operationally, the company’s performance had not improved. The management team was not incompetent or incapable of changing, but no one had advised them about what to do differently and how to implement change.
Action Plan
Developed and implemented plans to reduce expenses and grow earnings:
- Increased operational efficiency through improved scheduling
- Instituted a policy of reducing personnel during slow periods to reduce costs
- Minimized SG&A expenses
- Limited movement of heavy equipment among four locations to improve efficiency
- Improved coordination and communication across departments and among locations
- Implemented aggressive marketing plans
Results
The result was better than original estimates. The company exceeded sales and earnings plan by a wide margin, essentially doubling at the end of my first year. This allowed us to develop buyer outreach strategies and sell to a strategic buyer. We closed 15 months after implementing the plan.