INDUSTRY: Medical Products
OPPORTUNITY: Growth Equity
DESCRIPTION: Acquired a developer and marketer of innovative, medical soft goods.
BACKGROUND: The company had several issued patents and about 18 sku’s. It was spun-off from a larger company to management and was undercapitalized. They were struggling to produce and fulfill the current level of orders, but had a market opportunity to leverage their IP significantly.
- Expanded the IP portfolio dramatically.
- Invested in new product development and increased the product line to 200 sku’s, including several “category killer” product families.
- Created a disciplined sales process, including CRM, contact plan, internet presence, regional sales management, lead generation systems.
- Increased the number of customers from 5 key accounts to 140 active distributors on 5 continents.
- Partnered with several key opinion leaders in the medical field to drive credibility and adoption of the new products.
- Secured a bank line of credit to finance working capital.
- Hired a President and COO to streamline the operations, reduce lead times, and drive efficiencies.
- Increased sales by about 250% and earnings by over 400%.
PERFORMANCE: Sold the company to a competitor for an 11x EBITDA multiple, giving investors a 7x absolute return or a 68% IRR.