ABC provided unique laboratory services in the TIC sector for two very different industrial sectors. It had global customers, many with long-term contracts and a unique business proposition. However, the company was facing several challenges, including a lack of growth and no clear marketing or business development strategy. The owners, a husband-and-wife team, were looking to retire and had been trying to sell the business for a few years without success.
RSP conducted its own due diligence which identified several areas for improvement and approached potential buyers to evaluate market interest. RSP discovered that the issues that deterred buyers included Each such factors as ABC’s conflicting services, their geographical location, difficulties in entering the US market, and the lack of a management succession or strong brand image.
RSP worked with ABC to rebrand the company, successfully enter new markets like USA, advise on pricing policy, train sales employees, and ensure that the company had a management succession in place before going to market. These efforts paid off, as ABC was able to almost double its revenues and EBITDA, and ultimately sell the business for twice the original expectations.
This case study demonstrates the value of working with RSP who have the specific TIC industry expertise and resources to turn around a mature business, help reinvigorate growth and help it reach its full potential prior to a sale. By addressing the underlying issues and implementing a comprehensive growth strategy, ABC was able to successfully transition to new ownership and more than achieve the owners’ desired outcome.