Client: Private Owner
Business Description: Equip. Distribution (Macomb County, Michigan)
- Large Industrial/Const. Equip.
- Municipal Equip.
- Sales & Service
- M & A- Acquisition by Public Company
- Big three tier three plant rental equipment supplier
- 80 year old family business in a national “roll-up” industry
- 5 owner/managers with no common vision
- Negative cash flow
- Declining revenue & equity
- Passive-aggressive infighting
- Working capital lender leaving industry
- Some business lines had negative gross margins
- After years of cost cutting, reduced overhead by over $1 Million
- Implemented new standards to increase efficiency and create sense of urgency
- Implemented new pricing models
- Eliminated unprofitable & unpopular business lines and related overhead
- Shifted focus to profitable business lines
- Worked with management to create alignment and shared goals/vision
- Cash flow and profitability increased
- Ultimately management could not sustain new culture and decided to sell
- Solicited and obtained strategic buyer from public company sector
- Negotiated an above market price for all assets
- Performed 90% of client due diligence in accordance with Sarbanes-Oxley over 9 month period
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