Business Case Study - Business Supply Company​

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Overview

This 50 year old traditional company had been converting from direct to online platform sales. As a reseller in a competitive industry the company did not have high margins. Value at day 1 of engagement was low and probably not sellable. The owner wanted to grow the platform sales to finish the conversion and expand the company. They desired an exit in about 5 years.
 
Cross NW was engaged to help the owner to scale the company by capturing the low-hanging opportunities and develop a proprietary pricing process.
 
Cross NW identified three main points that the company needed to address. They were:

Situation

Cross NW identified three main points that the company needed to address. They were:

  1. Sales– The owner was so busy running the business that he was not able to dedicate sufficient time to sales building activities. Prioritizing revenue generating activities was also a challenge.

  2. Resource Development – The company had relied on the owner and a limited staff to complete the work in developing the platform data. Cross NW shored up the team with their resources and augmented the team with offshore resources to provide a deep bench of capabilities.

  3. Management – Implementing weekly performance (KPIs) helped to ensure profitable operations. The Cross NW team provided individual coaching to the business owner which allowed them to scale the business.

Result

Cross NW advised on business strategies heavily focused on sales and marketing, human resources, process development and business management. Cross NW has worked with the client on a weekly basis to help the business double in less than 12 months and if results continue the business will have tripled value in less than 24 months.

The owner will be able to complete

Business Description:

50-year-old Business Supply Company

Objectives:

Owner wanted to grow business so they could sell in 3-5 years

Timeline:

12 Months

Result:

$3 Million Dollar Enterprise Value Increase

ROI:

20X

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