Commercial and Industrial Ventilation Systems (Market Visioning, Market Entry, M & A's)
Our client is a $15 million manufacturer of ventilation systems, offering sophisticated ventilation systems from it's technologically advanced manufacturing facilities in the UK.
An evaluation by us of the French and Spanish markets determined that our client's products were not price competitive. We identified a strategic partner that was the market leader in a number of important classes of ventilation system and proposed an $15 million acquisition that was entirely locally financed. This provided an annual contribution of $2 million through: A lower cost of ventilation systems of a type sold by the parent which provided improved margins for the parent at a stroke. Expanded production for the company acquired through parent company purchases, resulting in reduced costs and increased profitability. Leverage of parent company sophisticated, high-priced systems with existing customers of the company acquired. Local stock of parent company products and immediate sale of parent company systems through a proven sales organization.