Case Study: Energy / Financial Services

Industry: Energy / Financial Services

Company: CONFIDENTIAL

Situation: 

• Founder run energy company had grown rapidly to ~$50m in revenue

• Changes in industry fundamentals decreased revenue and put pressure on the company, exposing underlying challenges related to fiscal discipline, growth strategy and capital strategy

• Previously profitable business was now losing money, had limited growth prospects and a fundamental misalignment between investors and management

Post Cove Role:

• Post Cove team member stepped in to this company in a C-level role in order to stabilize, re-capitalize and grow the business

• Business conditions included a chaotic operating environment, lack of operating discipline, declining margins across the industry and increasing competition.

Results:

• Reduced OPEX by 20%

• Eliminated multiple under performing business unites

• Re-capitalized the business and aligned management team with investors

• Built and executed growth strategy that expanded companies reach into large directly adjacent markets

• Returned company to profitability and doubled equity value