CSI-Recommended Advisory Board Builds Company Value, Charts Profitable Exit Strategy for Owner of Multi-National Firm

Client

A multi-national manufacturer.

Problem

Deteriorating global economics caused the client’s sales to stagnate after years of strong growth. Company leaders believed there was untapped potential for growth and profitability.

Solution

CSI led the effort to assemble a diverse, highly experienced Advisory Board. Comprised of industry, merger and acquisition, operations and marketing specialists, the advisory board was tasked with crafting a plan for sustainable growth.

CSI’s recommendation for an Advisory Board stemmed not only from the obvious need to invigorate sales but from its analysis of internal factors. In this case, the firm’s president was nearing retirement and there was no succession plan in place. Consequently, an Advisory Board would play a critical role in evaluating growth alternatives and nurturing those selected.

After three meetings, the Advisory Board recommended an action plan that optimized the potential of both the company and the aspirations of its president. The core recommendation: embark on a two- to three-year initiative focused on building the value of the business as a prelude to its sale at a significant premium.

Outcome

Following the direction of CSI and the Advisory Board, the company deployed a business plan that put it on the path to maximizing enterprise value. The plan focused on growing EBITDA and establishing a solid footprint in Asia, where strong growth was projected. These two drivers, combined with the company’s small size and elite sales force, would make it attractive to potential suitors when the president was ready to sell.

Over the next three years, the Advisory Board held the president and his management team accountable for achieving the strategic goals and provided sage business advice. The vision of the company was then realized when it was acquired by a private equity firm in a fashion envisioned by the Advisory Board. The president and management team earned handsome financial rewards and all employees were retained by the acquiring entity.

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CSI draws upon the diverse skills and experiences of thirteen consultants to help clients navigate challenges. Sole proprietors cannot compare.