Project Info

$25M manufacturer of energy delivery systems prepares for initial discussions with prospective brokers, investment bankers and valuation firms

Challenge:  As part of the process of deciding whether to sell their company, ownership’s goal was to clearly establish and be able to articulate growth and economic potential prior to discussions with brokers and investment banks. CE2 Partners’ role was to prove out growth opportunities currently beyond their reach economically, and to excite brokers, investment banks and, ultimately, educated buyers. This included profiling the opportunities, quantifying how they can create economic and strategic value, defining the operational models required to execute and the products, pricing and market-shaping required to win. They realized this was important work that would materially impact the price paid for their business but lacked the bandwidth and expertise to get past educated hypotheses, and wanted to avoid putting this work on the backs of prospective buyers. Along the way, CE2 was also able to provide the owners documented and reliable insights to the economic potential and effort required to execute other strategic options; including accelerated organic growth, acquiring bolt-on companies, bringing on new capital or partners, or simply maintaining course. 

Objective: Premium Multiple, Economic Value Creation, Strategic Alternatives

 

Agreed Upon Solution:

  • Prove out existing growth opportunities including their strategic and economic value and what it will take to win

  • Investigate other value creation strategies including accelerated organic growth, recapitalization and bolt-on acquisitions

  • Prepare a Board-level report summarizing options

Project Details


Objective: Premium Multiple, Economic Value Creation, Strategic Alternatives 


Operational Scope: Ownership team, CFO, Board


Industry: Industrial Energy Systems & Services,


Company: Private Company, Lower Middle Market


Executive Sponsor: COO