Case Study Background

A North American building materials manufacturing company was conflicted with a new, in-house developed product concept that did not fit their to-market strategy. The concept employed a proprietary manufacturing process but the organization had neither the sales expertise, relationships or distribution/logistics capacity to support. They asked us to assess the market opportunity and offer an investment/expansion or divestiture recommendation.

Analysis and Teamwork

Our team worked with the client to map and juxtapose each of their existing business units to assess demand planning, raw material & manufacturing  scale economies and customer needs assessments of potential product bundling scenarios to define fit and opportunity. Our customer, and ultimately competitor contacts formed the basis of our exit strategy by building interest in the product, the market opportunity and building purchase price value for the intellectual property. In collaboration with the clients engineering and legal staff we secured design and application patents to frame our multi-dimensional investor “book”.

Results

Our comprehensive market analysis, “strategic canvas” mapping and first person competitive research delivered a divestment plan,  and supporting investor book with strategic and tactical considerations, coupled with secured design and utility patents enabling a 7X earnings sale of this underperforming business. The resulting proceeds fueled a dramatic expansion and double digit market share growth in their core business over the following three year period.