Situation

Despite significant scale, the Company had experienced persistent underperformance. Ahead of a potential ownership transition, G2 was initially engaged to assess the Company’s budget, cost structure, financial projections, management capabilities, and broader operational performance. As part of this work, G2 also evaluated available strategic alternatives and identified viable contingency plans, providing the stakeholder group with greater clarity and confidence to continue pursuing the transaction. 

Through on-site work and direct engagement with management, G2 identified the primary factors limiting profitability and developed recommendations to address the Company’s operational and financial challenges. Following the completion of the transaction, the new ownership group sought support implementing those and other recommendations and accelerating performance improvement.   

Engagement

G2 partnered with the Company’s leadership team and ownership group to identify and execute operational improvement initiatives across the organization. 

The engagement addressed key functions including manufacturing, inventory management, purchasing, planning, sales, program management, quality, and engineering. Additionally, the G2 team also developed standardized KPI’s and dashboards across all the departments and across all the facilities. G2 worked closely with senior leadership and middle management to establish priorities, assign accountability, improve operating discipline, and maintain momentum across the transformation. 

Initially structured as a three-month assignment, the engagement was extended to ten months based on the progress achieved and the continued opportunity to support value creation. 

Outcome

The Company achieved significant financial and operational improvement. In the first six months of this year, the Company generated as much EBITDA as the entire prior year and remains with strong momentum for the remainder of the year.

Inventory reduction and working capital initiatives also generated liquidity, positioning the private equity sponsor to return a dividend within a year of the acquisition date.