In this brief case study, we explore a collaboration between Eendigo and a mid-sized B2B industrial player in the European paint and coatings sector, bought by a US Private Equity fund.
Through our proprietary commercial excellence diagnostic methodology, we identified and addressed critical organizational challenges, structured a value creation plan, and facilitated a strategic shift in the investment paradigm of the PE fund.
A mid-sized B2B industrial player active in the European paint and coatings sector found itself at a critical juncture after its divestiture from a top player in its industry and its acquisition by a US mid-cap Private Equity fund.
Following the divestment, the company faced challenges, including stagnant sales growth and operational inefficiencies. To strengthen its market position and to evaluate the potential for organic sales growth, our long-term partner Private Equity fund asked for our support.
DIAGNOSTIC INSIGHTS: ORGANIC GROWTH IS ACHIEVABLE
Through in-depth interviews and surveys with the commercial organization and the leadership team, Eendigo mapped the company’s maturity gaps across 50+ commercial value drivers guided by our proprietary methodology.
We identified 4 main growth dimensions: Hunting for new customers, optimization of Pricing, re-design of the commercial Organization, and fine tuning of Compensation & Incentives.
Collaborating closely with the client’s leadership team through a set of workshops, Eendigo formulated a set of initiatives aimed at addressing the identified commercial maturity gaps and launching catalyzing growth.
From refining sales processes to optimizing pricing strategies, these initiatives laid the groundwork for the 18-month transformative value creation plan.
This plan completely overturned the previous assumption that growth only through inorganic growth initiatives, such as a series of acquisitions for geographical expansion. Guided by senior leadership consensus, the prioritization of initiatives ensured a focused and impactful approach. Key initiatives, including white space analysis and account planning, were earmarked for immediate implementation.
CONCLUSION: A PARADIGM SHIFT FOR FINANCIAL SPONSOR
In conclusion, despite conservative EBITDA projections, Eendigo’s analysis revealed a substantial sales growth opportunity with limited investments.
By identifying and addressing organizational challenges – whether they be unchallenged assumptions, organizational inertia, or complacency – Eendigo facilitated a paradigm shift in the company’s approach to sales and operational efficiency.
This strategic development not only positioned the company for growth but also reshaped the investment thesis of the Private Equity fund, highlighting the importance of striving for commercial excellence in any business landscape.