In order to grow the company and expand into new basins within the U.S. and Canada, our client sought to attract a private equity partner. A successful provider of waste water processing technology, the company had clean books, sound accounting practices and a solid financial performance.
At the time our client turned to PCS, the company was in the midst of developing a new technology and faced significant challenges breaking into new markets:
- The patent pending technology was largely unproven.
- Prospective customers were most concerned with meeting deadlines and securing new contracts, and were not inclined to try something new and unproven.
- The primary benefit of the offering was cost savings and at the time, saving money was not a focus in the market.
- The leaderships’ time was consumed with serving its existing customer base, and they were therefore unable to bring the proper level of attention to promoting the new product line.
- The company had the capital and staffing in place, but lacked the management structure to support significant expansion into new geographic markets.
We conducted in-depth customer interviews to identify gaps in the company’s service model. Our analysis revealed the need for a specific management structure and greater market diversification. As part of our research, PCS also identified several prospects and uncovered a need for services in four new markets — Texas, Oklahoma, Wyoming and Mexico.
Following our recommendations, the client was able to evaluate several candidates and hire the appropriate manager for the business. PCS was also able to advise the client on their go-to-market strategy for the new technology, helping the company increase visibility for the new offering and attract interest from potential investors.
As a result of these activities the owners are now focused on operations and new markets, resulting in a more profitable company that’s well positioned to seek private equity investment.
PCS & the client are currently in talks with several strategic buyers and private equity groups to move the company toward its goals.
Location: Williston Basin
Scope of Work: M&A Consulting
Product Lines: Waste Water Processing
Contract Time: 6/2014 – Present
Delivery Timeline: Q3-Q4 2014; New management in place. Consulting to result in revenue increase.
Completion Date: Q4 2014; Management & revenue goals met, Q1 2015 opportunity brought to market. Q4 2015 Investment / Sale Goal.
For more information, please contact Zac Griffin.