Private equity group focused on manufacturing portfolio companies
Background:
The Company is a $25 million dollar private equity group that specializes in mid-cap manufacturing companies.
Challenge:
One of their portfolio companies was 90% focused on the cosmetics industry which was significantly compromised due to Covid-19 and remote working conditions. The portfolio company had one salesperson and the President who were responsible for sales. This team did not have a process, data sources or strategy to identify new potential opportunities for the stamped metal applications they manufactured.
Process:
The private equity group recommended Capri to the President of the portfolio company to help identify potential new markets. Capri physically walked retail stores to identify products that could benefit from the applications they manufactured and developed a list of experimental markets in food, beverage and housewares as well as other cosmetics companies that were not current customers was developed and approved.
Results:
Over 40 meetings were set by the Capri team. This allowed the PE group and portfolio company to make strategic decisions in CAPEX expenses in equipment, tooling and processes to expand their markets while closing an additional $200,000 in new business. The PE Group moved the effort to a second portfolio company in year two.