Insights
- A privately held $18M logistics company was struggling with the transition from family to professional management with many family leaders and lack of direction
- The company lacked a growth plan which would assure proper succession and financial benefit to the existing founder’s family
- Newport was introduced to the company by company’s family legal counsel for family business succession planning
Action
- A Newport partner worked with all interested parties to serve as a family liaison and to develop a strategic growth, succession, financial and operational plan to meet diverse needs
- Ongoing management team and family leaders were assessed, positions were defined, identified and ultimately filled
- A five-year growth and transition plan targeting $100M in revenue was implemented and closely monitored
Results
- The $100M revenue target was realized early in year four with 20% EBITDA margin growth
- Newport was retained to help develop next five-year plan to achieve profitable revenue of $200M
- The business was successfully sold to a private equity investor for a substantial return for the founding family members and the professional management team, with management returning to operate the business for the new private equity investor
