CASE STUDIES

CASE STUDY #1

By Admin,

INDUSTRY / SECTOR

Construction

CATEGORIES

Growth, Succession and Exit, Valuation, Strategic Planning

BRIEF

Develop a Growth Strategy in preparation for a 3 year exit.

CHALLENGES

Heavily regulated sector, strict license control limiting rapid growth and restricting potential buyers.

STRATEGY

Growth

A business review found that operating levels were high and capacity was limiting growth more than the owners realised. Capability was the second growth priority with limited non-technical skills existing outside of owners.

Exit

We undertook market research into potential acquirers but found more opportunity internally. A strategy was put into place to bring forward the exit plan to accommodate phased vendor finance for a management buyout.

ACTION

Immediate steps to increase capacity through – automation of basic tasks, outsourcing and contractor model developed. A price increase was applied to bottom 20% of projects which was the most undesirable work for the team.

A Product Architecture strategy was implemented to build a premium product into the offering and surce new clients into that space.

A program and supporting system was built to work on Capability growth for all team members including management and support staff. The owner was progressively removed from day-today operations and a Jr Partner took responsibility for Business development.

Encite as also engaged by both parties to coach and support the new leadership team once the transaction was complete.

OUTCOMES

  • Achieved 85% growth in turnover over an 18 month period.
  • Owners exited 18 months ahead of their 3 year plan.
  • New owners reengaged Encite to coaching new team to continue growth.
  • Another successful transaction to a new partner 14 months later.
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