It can be lonely at the top. Many CEOs/Presidents, especially in small- and medium-sized companies, struggle to find a trusted advisor who has the broad business knowledge, experience and perspectives that their senior management teams need:
- A confidential advisor they can bounce ideas off of and use for sanity checks;
- A skilled communicator and negotiator who can participate effectively at critical meetings with staff, vendors, customers or potential partners;
- An experienced resource to consult with when new opportunities surface that their management team has little or no background evaluating;
- A strong analyst who understands how to assess potential risks and returns and present clear options for moving forward.
That’s the Management Advisory portion of Newman & Company’s practice. The goal isn’t a one-size-fits-all, standardized approach – it’s informed counsel based on proven business and strategy principles and a deep understanding of the client organization’s specific underlying strengths, weaknesses and capabilities.
Across Newman & Company’s advisory relationships, the common thread is rapid growth in an industrial or technology market and client leadership that values an experienced, outside perspective. The range of issues typically addressed with clients is broad, often including:
- product-line, marketing and pricing strategies
- manufacturing and control improvements
- organizational planning and senior-level candidate evaluation
- financial/cash management questions
- acquisition analyses
- longer-term planning evaluations
REPRESENTATIVE NEWMAN & COMPANY RELATIONSHIPS
- Extraordinary Growth in Specialty Pharmaceutical Packaging. As an advisor to the President, evaluated potential acquisition candidates resulting in the purchase of a $3 million seafood-packaging company. Helped define the new organization and hire the management team. Over the next several years, participated in the assessment of numerous marketing, product-line and distribution opportunities which resulted in a new strategic direction and market focus on the pharmaceutical packaging industry and the introduction of innovative product lines. Rapid growth created the need for additional facilities. Assisted in the analysis and selection of a new plant locally, two additional domestic plants to expand manufacturing and distribution throughout the U.S., a European licensing arrangement to establish manufacturing overseas, and distribution agreements in other international markets. Sales at this 20-year client continue to grow rapidly and are approaching $100 million.
- Private Equity Operational Due Diligence. Have conducted 15 operational due diligence assessments of potential portfolio acquisitions for a major, middle-market private equity firm. These evaluations include an overview of current operating capabilities and potential benefits from the implementation of an aggressive continuous-improvement program. Typical findings include potential expense savings, asset reductions, production bottlenecks and anticipated capital requirements, gaps in manufacturing support systems and organizational issues.
- Launch of an Innovative Composite Pilings Company. Advised the President during the launch of a new division focused on composite pilings for marine and construction applications. Subsequently worked with the management team on marketing initiatives and priorities, distribution channel options, competitive pricing models, etc. Developed the valuation methodology and assisted in negotiations that resulted in the President subsequently purchasing the business. Assisted in the selection and layout of a new facility. This 15-year relationship with the President continues with ongoing work on marketing and growth opportunities.
- Project Prioritization at a Carbon-Fiber Engineering and Manufacturing Shop. The founder of an innovative carbon-fiber design and fabrication shop needed help prioritizing marketing opportunities and managing growth. Over the past 10 years, worked with the management team to define the most attractive longer-term business opportunities, restructure the bidding/estimating process, develop an organizational plan, and improve shop-floor management practices and controls. Assisted the President in evaluating and purchasing a new manufacturing facility. Company is now achieving extraordinary growth in its targeted markets.
- Organic Growth at a Fiberglass Specialty Products Manufacturer. Advised the management team on a broad range of strategic, investment and operational improvement issues. These included evaluation and implementation of major equipment additions and upgrades, an aggressive program to eliminate late shipments, a significant reduction in WIP and finished goods inventories, and appropriate tracking metrics. Helped on the evaluation and due diligence of an acquisition candidate and the justification for and layout of a second fabrication facility to handle new product lines. Participated in the identification, interviewing and selection of key members of senior management team. Joined the Board of Directors in 2013.
- Manufacturing Rationalization of Oilfield Valves. As this private-equity portfolio company was assembled through the acquisition of 6 separate companies, numerous overlaps in product lines were identified. The management of the $100 million valve division required assistance in structuring and evaluating manufacturing rationalization options. The analysis resulted in the closure of one of four facilities and shifting of numerous product lines to better focus the remaining plants. The expense and asset reductions were significant.
- Growth and Merger of an Injection Molding and Rapid Prototyping Client. The President of a stagnant $3 million tooling business needed to generate growth. Assisted in the evaluation and decision to start up an innovative rapid prototyping facility which became the largest service center in New England. Participated in numerous conversations with potential acquirees, acquirors and other prospective partners. After the business had grown to $25 million, served as a member of the team conducting prolonged, successful merger negotiations with a similarly-sized, Midwest molding company. Continued advising the combined $50+ million company as both a consultant and member of the Board of Directors until the company was sold.
- Rapid Expansion of a Liquefied Natural Gas Terminal. The President of a $200 million LNG terminal needed help upgrading the facility’s operating capabilities to handle a planned expansion to $500 million in revenues over two years. Key improvement metrics in operations, logistics, utilities and support inventories were identified. Served as the facilitator for a series of cross-functional teams that achieved dramatic improvements, enabling the Company to meet its objective of tripling the number of annual cargoes received at the terminal.
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