Jon Wilson
about 1 year ago by Jon Wilson

The Project

The Barton Partnership was engaged to provide several CxO level interims to improve the value of a subsidiary in preparation for divestiture.

The Problem 

Our client had decided to divest an underperforming subsidiary; however, a change of leadership and a sharp increase in revenue and EBITDA was needed to allow the client to achieve its sale price potential.

Approach

We engaged a senior team to formulate and execute a performance turnaround.  The work covered sales leadership; operation transformation (focused on manufacturing) and financial modelling support throughout the transformation.  We led initiatives in the following areas over a 12-month period:
  • Definition of a 5-year business plan
  • Implementation of new policies and procedures to drive improved performance in focused areas such as a new marketing approach (covering pricing and product strategy); KPIs and the recruitment process
  • Implementation of lean manufacturing
  • Cost restructuring focused on fixed costs and overheads
  • Handover to a new leadership team

Outcome

The transformation was very successful with:
  • 20% increase in revenues
  • 80% increase in profit – EBITDA
  • The subsidiary was sold at a substantial premium – 80% above valuations made prior to the transformation