Background
Facing challenges of two years of declining revenue, falling market demand and direct competition from larger, full-line companies that had recently entered the company’s market niche, the Private Equity sponsor recognized new leadership was urgently needed. Although still a technical and quality leader serving process-industry applications, the company’s cost advantage had eroded, margins were shrinking, and its market share leadership position was under threat. An independently operated sister company in a related business would soon be facing similar conditions. We were charged with finding a CEO to lead the company’s renewal, starting with an integrated vision for growth, new markets and products, and technology innovation—someone who could make the business thrive despite the soft current market and increased competitive intensity.
The Challenge
Recruit an all-court player who would be as effective in a critical relationship role with customers as in leading operations to world-class performance, all while playing a highly visible and influential role within the industry. The CEO would have to push the boundaries of a mature market with new solutions, investigate new territory and customer relationships, and educate and coach the company’s internal workforce on building a lean enterprise. The CEO would also have to create and develop the organization necessary for delivering top- and bottom-line growth.
Results
Within the first year the new CEO doubled revenues and profits. We began recruiting the executive team with our placements ultimately including the CFO, President, VPs of Global Sourcing, Global Sales & Marketing, U.S. Sales & Marketing, Human Resources and three VP General Managers. Over five years this team expanded the business five-fold via both organic and acquisitive growth with a focus on international market development. There were two very successful exits for successive private equity sponsors. The President that we recruited succeeded the CEO following the second exit.
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