The new owners of DentalCo* want to reverse its sudden drop in profits and loss of market share.
- DentalCo, a worldwide leader in dental equipment manufacturing and distribution, was a non-core business for its parent company when it was purchased for a high multiple by VentureCo*
- After the purchase, DentalCo lost market share, suffered declining profitability and was rocked by management turnover
- VentureCo asked Bain to restore DentalCo to profitability
Bain took a "full potential" approach to profit improvement, assessing opportunity across four major categories.
By streamlining its current business and restructuring in the future, DentalCo significantly improved returns for VentureCo.
The Bain plan for profit improvement of this portfolio company has beaten financial expectations in the short run and identified almost $1 billion in long-term profit potential.