Client/Industry
A building products business, which serves the residential and nonresidential cladding and exteriors market. Product is sold through distribution and demand, generated through architect specification and builder design preference. Dynamic factors include regional design preferences, access/channel to market, specialized installation teams and premium product orientation.
Situation
Ducker’s client is a leading international building products business in its segment, recently acquired by a private equity firm. The client required a robust assessment of growth alternatives and a prioritized plan to double the business in three to five years. The operational investments and improvements had been made and profitability levels set – now the key focus became growing the top line significantly, to optimize returns and overall financial performance. Existing and new management brought extensive operating and business development skills, yet full team alignment and a connected growth strategy was needed.
Objectives
- Double the top line growth in three to five years
- Demonstrate consistent revenue growth and expansion
- Establish an aligned, high-performance growth culture
- Successfully expand the business footprint and addressable market
- Execute efficiently to generate substantial returns to investors
Approach
- Current business performance assessment – including detailed historic customer, product margin and growth analysis
- Detailed customer/competitor analytics
- Industry segment and regional demand analysis, forecast and share position analysis
- Adjacency market/product opportunity profile
- Attractiveness/feasibility matrix
- Decision frameworks and workshops to align management team on key priorities for growth and action items
Outcomes
A detailed growth plan was developed and approved by management that incorporated four major work streams:
- Customer penetration
- Regional market development
- New product development and bundling
- Product/segment diversification
These four pillars of growth translated into a business opportunity three times their current run rate with accretive financial returns.
A key outcome of the analysis and planning was the identification of core customer/segment sales complacency and near-term 20% market share gain potential
- Ducker also identified improved pricing opportunities with strengthened pricing management tools
- Within 12 months – the business reached full capacity and revenues increased 25% – reaching record profits
- New customers and regions opened up
- New products were introduced and commercialized
- Adjacent segment plan was launched
- Management team also is in the late stages of completing an important acquisition, which will provide significant growth opportunities