New opportunities in kitchens and bathrooms
This client is a New Zealand manufacturing success story in the kitchen and bathroom industry. They pride themselves on innovative design and inspiration, and provided design solutions and product innovation to commercial and domestic customers throughout New Zealand via a network of certified installers.
The two founders acknowledged that, although they had built a great brand and business, they were "running out of steam". An opportunity to substantially grow the business was clearly available. This expansion would however, demand more enthusiasm, time and commitment than they were able to commit to.
They also felt that selling the business was premature as its full value was yet to be realised. If they could improve their business model, the business could be a better investment than simply selling it.
First we identified each founder’s personal and business goals, the real opportunity, and the platform that was required to meet them. A road map was then developed and an advisory and personal programme implemented. A suitable Managing Director candidate was found. Having worked in the DIY industry, owned a major building franchise and worked as manager of a national building supply chain company, he had the requisite background, skills and ambition (his stated goal: “make a mark in the sector"). The business represented a good platform to grow a substantial New Zealand-based manufacturing organisation as well as enable equity involvement.
Over the next few years, as MD and equity partner, he brought about a complete transformation of the business. This included the design, construction and establishment of a new manufacturing and marketing facility and new premises in Auckland. The business has lifted its performance in every identifiable measure and is now a leading provider in the Australasian market. The founding shareholders have been reinvigorated. This renewed enthusiasm had one of them, initially working "harder than I had worked in years", considerably reduce his hours and spend most of his time on the golf course, travelling and supporting his favourite charity. The other partner remains in a business development role, rather than in operations and management. This is what he enjoys and it was the personal goal he identified with Platform 1.