TRANSITION STRATEGY
After 20+ years of growing a small company, owners of successful regional component company were planning to sell the company within in a 3-5 year time window. They wanted to get prepared now so the transition would be smooth, provide good employment for key people, and command a good price.

We initiated a full review of the company with an eye toward enhancing overall company value. Competitor penetration, sales trends, margin growth, market opportunities, and internal capacities were examined. Key employees were invited into the idea generation process.

We identified opportunities and proposed that the owners build diversify the entity -- one that productized their intellectual property and knowledge in the business. This would both add to business volume in the short run, enhance value at time of sale, and provide the owners with a residual service division which could be either sold or retained. Further, a related but diverse manufacturing venture was proposed to use the capabilities of the production business yet provide balance to the sales engine.

Concurrent with the diversification strategy was one of internal process improvement in the existing business.

RESULTS
The proposed diversification strategy enhanced overall health of the business. Sales revenues and profits grew as the business concurrently reduced business risk through diversification and provided the owners a broader set of exit strategy options.