August 2009 Newsletter Strategic Planning in a Down Economy

August 2009 Newsletter Strategic Planning in a Down Economy

IGS is working with corporations, lenders, and portfolio companies to tackle market-related issues, ranging from developing a strategic plan to generating revenue leads and everything in between. Whether you are a financial sponsor with portfolio companies operating under leverage and covenant constraints or a company executive grappling with a changing and challenging market environment, IGS has deep experience helping to provide clients with the information they need to optimize, refine, and redirect their limited resources to maximize top line benefit.

Case Study: Strategic Planning in a Down Economy

IGS recently worked with a private equity client and its portfolio company in the building products space in support of their strategic planning process. Specifically, IGS helped they company evaluate whether and how the company would achieve ambitious growth and margin targets by 2012. As a part of this engagement, IGS delved into numerous facets of the client’s business and its market including:

  • Growth Targets IGS developed information and analyses to quantify and clarify the specific sources of growth to achieve the overall target growth: overall market changes (“rising/falling tide”), market share changes, pricing discipline/strategy, new locations, and acquisitions. This gave the client a clear understanding of where the growth would need to come from and better sense of how to get there. As a part of this study, IGS developed a list of in-market and new market expansion opportunities and priorities as well as a list of acquisition candidates.
  • Margin Improvements IGS examined sourcing and pricing practices throughout the company’s regions and performed branch-level analysis that showed the company how to improve its performance to both. This provided the client with the necessary basis to take a data-driven approach to improving the efficiency of its operations and a quantifiable way of tracking its progress. Working with the company, an action plan was developed to address detailed near-term initiatives around supply chain management, sales and marketing, pricing and other related areas of the business.
  • Competitive Position IGS helped the company to clarify the implications and importance of being a leading share supplier in each of its markets and the impact on costs and customer base due to the “local” nature of the business. IGS also developed supporting analysis to show the client its market position in each of its regions and gave the client a detailed map of actions about how to: secure a leading local market position, develop a location which would be beneficial to surrounding locations and fill a system-wide need and, in some cases, close underperforming non-strategic locations.

Competitive Position and Performance of Company Locations The final deliverable was a 3-year strategic plan which laid out specific actions, risks, and alternatives, that was ratified by the company’s board.

IGS Developments

Promotions Our professional staff continues to develop in order to meet the needs of our clients. We are pleased to announce that Associates Liz Carroll, Peter Harris, and Mark Rohde have been promoted to Senior Associates.

Broad and Deep Experience

Investor Group Services is a consulting firm with over a decade of experience serving private equity and corporate clients. Over this time period we have worked on behalf of our clients in over 1,000 engagements across almost all sectors of industry. Consequently, we have deep experience in many industries including:

  • Healthcare
  • Business Services
  • Financial Services
  • Industrial & Distribution
  • Education & Publishing
  • Energy / Alternative Energy

Our lineage is rooted in classic strategic management consulting, and our senior management team is comprised of professionals with backgrounds in strategic management consulting, public accounting, and private equity. Our staff is comprised of full-time professionals from leading MBA and undergraduate programs with varied professional backgrounds. We would be pleased to discuss our experience and ways that we may be able to help you better achieve your strategic and investment goals.

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