Market Diversification & Acquisitive Growth
| CLIENT PROFILE |
| INDUSTRY Distributor – Construction Equipment |
| SIZE $900M Sales at Engagement |
| GEOGRAPHIC MIX Midwest United States |
| MARKET POSITION #1 |
| UNIQUE LINES OF REVENUE 3 |
| CHANNELS TO MARKET Direct Sales, Rentals, Online |
| 3-YEAR CAGR AT ENGAGEMENT 6-8% |
| BACKGROUND |
| This successful, multi-location, multi-generational, industrial equipment distributor engaged CE2 to identify growth opportunities through diversification. With a history of profitable growth with leading global brands, they were searching for the “what’s next”. Based on client’s operating profile, CE2 identified candidate product lines and businesses and assessed their potential for meeting project requirements. |
| OBJECTIVE |
| Establish a diversification strategy that reduces risk from construction industry economic cycles, accelerates growth, and increases enterprise value, including bolt-on product lines and businesses. |
| PROJECT DRIVERS |
| Diversification – Establish profitable revenue streams to offset construction sector economic cycles. |
| Accelerated Growth |
| Net Increase to Enterprise Value – At least 10% |
| DELIVERED |
| Interviewed L1 and L2 managers for perspectives on candidate product segments and acquisition targets. |
| Based on management discussions, data collection, investigation, and CE2 insights, profiled target product segments and business types. |
| Developed client’s “pitch” for engaging and appealing to targets. |
| Made initial contact with targets, assessed strategic and operational value, identified business-model requirements and the effort required, and developed early-stage projections for economic value creation. |
| Synthesized all inputs and added expert insights resulting in recommendations and client-direct engagements with targets. |