Build More Profitable Revenue Streams, Faster.

Success stories

Textiles, home furnishings, e-commerce, and decor

Wholesale Distributor - Confidential

Built Value for Private Equity Sellers and EBITDA for New Owners

Private-equity-owned distributor was preparing to put a home decor company on the market. Articulating a replicable growth process and credible growth story were key to optimizing valuation and ultimate sale price for the home decor company.

Actions

  • A Growth Evaluation proposed five expansion opportunities, creating new channels and new categories. 
    1. e-commerce – developed model to activate then ship existing products on marketplace websites.
    2. textiles - developed new categories for existing customers.
    3. furniture at mass retailers - developed product design and sourcing base for mass retailers.
    4. EU retailers — adapted US assortment targeting EU retailers and EU consumers.
    5. accessories — developed decorative accessories categories and supplier base.
  • Achieved management buy-in for size of revenue opportunity and “fit” for business model.  
  • Defined organizational resources to address cross-functional challenges (i.e. product development, marketing, sourcing, operations, sales management).
  • Launched five pilot projects to turn the five expansion opportunities into reality.
  • Recruited and managed staff, accessing and developing talent remotely across the US and EU.
  • Pilot project launch took place during company sale process and was presented to potential buyers.
  • Published monthly progress updates and milestones to  executive management team.

Results

  • Repeatable growth story of previously completed expansion project (a $0 to $26M expansion in three years) and five new pilot projects increased the EBITDA multiple on entire company.
  • Pilot projects achieved $5M of new revenue during first full-year, with third year forecast exceeding $40M.
    • Four out of five projects progressed into second year
    • Three projects were successfully tucked-in (under client management team)
  • Company was successfully sold, and we guided largest project (e-commerce) into second post-acquisition year (from pre-acquisition of $1.5M sales/year to first 6 months $3.8M actual sales, seasonalized 12-month forecast of $10M/year).