The founder and CEO of a family held manufacturing company was contemplating the sale of his company while managing through a difficult economic environment, declining earning and the absence of a viable succession plan. Cosgrove Partners was retained to assist the CEO and his management team in preparing the company for sale.
COSGROVE PARTNERS ACTION
CP facilitated an assessment of the organization and developed an approach to improve the performance and operating results several key areas of the business. The assessment resulted in several targeted performance improvement projects and a new management approach to guide the performance of each department.
The approach specifically included:
- Monthly financial and operating reviews
- Targeted cost reduction programs
- Installation of a new ERP platform
- Implementation of a “Wireless Warehouse System”
- Increased pricing discipline
- New manufacturing equipment and automation
The operating and financial results of the company improved significantly resulting in a decision to not sell the company. With EBITDA results well in excess of similarly sized manufacturing firms, the company developed and internally financed a change of control to the next generation of family ownership.