Situation
A Chicago-based private equity firm acquired a small firm ($45M in sales) in the electronics space with an opportunity to grow sales and profit in a niche market.
Challenge
1) To grow sales from $45M to $80M in three years in the service industry with a change from hardware sales to selling engineered solutions.
2) Acquire a CEO successor for a planned exit.
3) Develop sales expertise in military/aerospace markets where the firm lacks company share.
Actions
1) Defined a modified sales organization that would be led by a new chief commercial officer that would be a successor to the CEO and lead the transformation toward engineered solutions selling to higher level executives.
2) Implemented two regional sales manager roles to focus on working with sales engineers in the field and key clients along with business development.
3) Added new sales engineers in regions with little customer exposure or business. Key areas: Texas, Florida, Washington, and Canada.
4) Recruited talent with prior experience in military/aerospace.
Results
Grew sales over 30% in the first year with the addition of a new CCO, one regional sales manager, and six new regional business development engineers. Currently recruiting an additional three business development engineers with military/aerospace experience.
