Management review in a B2B distribution business under LBO

Assignment

Management review in a B2B distribution business under LBO

Issues : Supporting growth, Transforming the business
Services : Leadership Consulting

Context

  • A business in B2B product distribution via a multi-channel strategy (internet, catalog, sales force) with several subsidiaries in Europe, making 40% of its revenue from exports
  • For many years, the firm was the only distributor specialized in its field, but competition had become very aggressive
  • The business was turned around by its Chairman, who restored revenue growth through management focused on figures
  • A new majority-stake fund had completed an LBO operation with the Chairman and his management team, with an ambitious five-year development goal
  • The fund wanted to ensure that the management teams were consistent with the project and were fully behind it in order to guarantee its success

Eurosearch & Associés involvement

  • Eurosearch & Associés proposed carrying out a Management Review by working one-to-one, meeting the twelve key managers in structured, in-depth interviews in several countries
  • We presented the summary of these interviews to the Chairman, the majority shareholder and the Supervisory Board

Results

  • The conclusions of our Management Review (Management Audit) revealed that the management team was working in line with the strategic vision
  • Several points emerged: a risk relating to two key people on the Executive Committee; the need to prepare a succession plan for one of the subsidiaries; a lack of leadership for the repositioning of a service offering; the need for a more cross-disciplinary mode of operation in order to facilitate communication between countries and the sharing of best practices

Eurosearch & Associés supported the investment fund and senior management to ensure that the recommendations were applied.