At a Glance
The Full Story
CoatingCo* provides a specialized chemical coating for medical devices and electronic components that makes them function better and last longer. The US-based company generated only about $40 million annually in sales at the time of acquisition, but the private equity firm saw substantial growth potential for the size of the market and for CoatingCo.
The big question: Which way to go first? Existing customers could provide additional business, but new customer segments beckoned as well. With many ideas and an aggressive timeframe, the private equity owner turned to Bain for help evaluating current and future organic growth opportunities.
To maximize growth in a short time, CoatingCo needed to start with the basics. Bain took a number of steps to help management and owners clarify the company's core market, estimate the size of that market, and assess which adjacent opportunities might be most fruitful.
- Doubled EBITDA in less than three years
- Created a more robust sales and customer service function to support growth for years to come
- Sold to a strategic buyer within 2.5 years, earning over 6X return on invested capital and in excess of 100% IRR
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.