ICG Sparks Growth of Underperforming Division To Exponentially Increase Company Value
Client: A leading provider of generators that believed their business was underperforming.
Challenge: The client sought sustainable opportunities to drive top-line revenue growth and increase plant capacity utilization. The client engaged ICG Consulting to provide strategic focus to its underperforming generating division. Specifically, ICG Consulting was tasked with identifying geographic and/or industrial segments in which competitors could be weak and/or in which the client would be advantaged.
Proposal: ICG proposed a top down audit of business activities that focused on driving incrimental sales growth and identified underperforming and under appreciated functions within overall business operations. The goal of finding new revenue streams through the exploitation of under utilized corporate assets was at the heart of the engagement.
Findings: The client was sitting on a goldmine; an entire divison within the company with the machinery, tooling and capacity to provide aluminum cable to the market, instead of focusing manufacturing purely on internal production needs. By engaging this division to produce at full capacity, a huge surplus of aluminum cable was made available to the wholesale marketspace.
ICG Consulting identified the U.S. regional markets that presented particular opportunities for the client to drive incremental sales growth. This included quantitative analysis of the gross profit maximizing price for aluminum cable products based on customer research attained via an online survey of electrical contractors and in-depth interviews with industry participants. The client used the market and growth forecasts data to help inform negotiations with distributors in key markets.
Solution: Once clear market opportunities were identified, ICG Consulting developed a coordinated and regionally-tailored commercial strategy for the client to deploy against market needs. This tactical implementation plan zeroed in on and exploited market opportunities rapidly and systematically to enable an unparalleled recovery.
Result: ICG Consulting helped the client understand and achieve growth potential of its struggling aluminum cable business, doubling its business over the course of 12 months to realize the full market potential of this lucrative, yet underappreciated segment. Our successful engagement positioned the company for acquisition and provided a clear exit strategy for owners and investors. By increaseing the overall attractiveness of the business, ICG helped the company command a price premium that far exceeded management expectations on a transaction that closed 6 months following the conclusion of the assignment.
Value-added Research: ICG Consulting provided market forcasts and penetration estimated by product and region to help the client plan sales targets, enabling a focused and rapid execution against market opportunities.