Growing Specialty Chemical Company
The company manufactures a specialty coating that’s used in the manufacturing of multiple medical devises such as stents, catheters, and guide wires. The company was founded by two local chemical company executives and has grown steadily and profitably for over 20 years.
At the time we were engaged they had $8m in sales, about 30 employees and an internal valuation of $5 per share.
Events leading up to the client needing our help
The founder and CEO was preparing to retire and had just hired a new President to take over day to day management of the firm. Rather than be too intrusive with his ideas, and to give the new executive the room he needed to implement his own ideas, we were retained to coach and mentor the new President.
What we did
Working directly with the new President one on one as a coach and through inclusion in our CEO Leadership Forum, we worked together to develop his leadership skills, improve the firms profitability, manage growth and fill the sales pipeline.
As a coach, we focused on sales and marketing activities. Evaluating the effectiveness of each marketing platform and then suggesting a client centered approach that put additional resources into strengthening relationships with the engineers at their top clients.
As a member of the CEO Leadership Council (peer consulting) the group pushed the new President to look at the pricing structure of new products and to focus on closing the holes identified with an internal process audit.
Taken together, the results included reducing production quality incidents by 50%, a systematic increase in pricing for all products ranging from 5% to 20%, and a doubling of projects in the R&D sales pipeline.
After three years of working with the client, they hit $12m in sales, 35% profit margins, a strong technical team of over 45 employees and received a buyout offer of $25 per share (a 500% increase) which they choose to reject.