$800M Industrial distributor in a highly cyclical industry looks for ways to grow sales profitably, reduce risk and increase enterprise value.
Challenge: This distributor of industrial equipment is a market leader in a highly competitive environment. With core product sales running on relatively short economic cycles and increasing pressure on margins, the company’s goal was to identify adjacent bolt-on product lines or acquire a distributor of adjacent product lines to drive profitable growth and diversification. CE2 Partners role was to identify and perform early stage vetting for targets. For bolt-on product lines, this included identifying products that meet the company’s criteria for creating strategic and economic value, closely align with their current addressable market, and create a competitive advantage quickly. For acquisitions, this included identifying and recommending products that met the criteria, acting as initial contact and completing early-stage vetting, and recommending optimal post-acquisition operating models and integration strategy.
Project Focus: Product Line and Company Acquisition
For the most part, the names of our consulting clients and their financial results are confidential. We are happy to provide references upon serious inquiries.
Objective: Grow profitably while diversifying risk
Operational Scope: Executive Team, Board
Industry: Industrial Equipment Distribution, B2B[/text]
Company: Public Company, Middle Market Division
Executive Sponsor: COO