CASE STUDIES
Equipment Distribution
Challenge
A well-positioned food service equipment distribution company had filed for bankruptcy. The fundamentals of the business were sound, but poor management and unchecked expenses had brought it to the edge.
Approach
We formed a NewCo to acquire the company’s assets and start fresh with the right structure. A new management team was brought in with strong performance incentives. We moved operations to a more cost-efficient facility, consolidated the product line, renegotiated with manufacturers to reduce delivery cycles, and built performance dashboards to keep the business honest.
Result
The company reached positive cash flow within eight months. By year four, it had grown to $130M in revenue and was sold to a major customer. Investors realized an 18% IRR.