Case Study 3: Transportation manufacturing · 6 years
A private equity-backed transportation safety and visibility technology manufacturer. Around $468 million revenue and $111 million EBITDA at the start of the period.
A good business with a growth plan that depended on acquisition. The risk in that plan is the one every board knows: scale arrives, margin leaves. Buying revenue is straightforward. Buying revenue without diluting the returns that justified the thesis is not.
Case Study 3: Transportation manufacturing · 6 years
Installed the operating system before the acquisitions rather than after. Every business that came in was segmented and priced on the same basis as the core, which meant integration was a known procedure instead of a negotiation.
Head, core and tail analysed across more than 95,000 SKUs, supported by over a hundred customer interviews — replacing habit with evidence on every deal.
Trained rather than outsourced. Six thousand hours across sixty-six people, with more than two hundred supplier visits, so the capability stayed inside the business instead of depending on outside advisors.
Revenue nearly quadrupled and the margin rose six points. That combination does not happen by accident, and it does not happen because the acquisitions were good. It happens because every business joining the platform was put on the same operating system the day it arrived.
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Dominant lever
For interviews with Bill Canady, expert commentary on profitable growth, private equity value creation, margin expansion, or 80/20 methodology, contact: [email protected]
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