Case Studies

developing an exit strategy

To Sell or Not to Sell
Business owners frequently struggle with selling their businesses. At the core of a successful entrepreneur is the ability to see opportunity in the future and a fundamental enjoyment of the journey rather than the destination. Selling a business ends the hunt and while it can be rewarding.. Read more

 

Thinking Outside the Box
Creating Strategic Advantage

Strategic business partnerships

Most strategies involve some type of competitive assessment and figuring out ways to be better at the key success factors than the competition. Some of the best strategies, however, are ones that solve problems in a different way than the traditional competitor. Sometimes companies are able to do this because they are smart. Others do so because they are lucky, but sometimes companies do so because they simply have no other choice.

Our client was a thriving provider of equipment related to fiber optics. In the late 1990s, they were growing faster than they could have hoped for. They scaled up as quickly as they could only to find that the Internet bubble was about to be popped. Demand for their products all but dried up as the dot com bubble burst.

Taking action early and decisively was critical to their survival, but in order to thrive again, they needed to find something new to leverage their large infrastructure. Rather than competing on the same dimensions as their largest competitors, we helped them look outside of their core industry and leverage their capabilities rather than their industry knowledge and expertise.

We found a European company that was looking for access to the U.S. market for their products and could leverage the distribution and channel relationships of our client. Although their products were completely different, many of them were sold to the same types of customers with a technology that was not a huge stretch for our client’s sales people. Cross functional teams across both companies were required to develop a long term plan that would be successful.

Negotiating a deal that is fair and equitable to both parties is tricky in any normal situation, but is even more difficult when dealing with cultural and language barriers. But by assessing the strategic objectives of both companies, we were able to structure a deal that was good for both parties and allowed for flexibility as the growth of both companies progressed.