Shooting for New Growth Targets

Situation

Law Enforcement Targets, Inc. is a privately held, family owned business that designs and distributes shooting targets to homeland security agencies, police departments, military units and gun clubs. The owner of this 14-year-old company came to Platinum Group for help. For personal reasons, he wanted to sell his business quickly at a predetermined price.

Challenges

• The owner had spent time away from the business to respond to some personal issues.
• The business needed senior management leadership to take the company further.
• The opportunity to grow had been limited due to the staff and facilities.
• There was a deadline for the closing that needed to be met.

Response

After conducting some quick due diligence, Platinum determined the owner’s price was fair and acquired 100% of the company in August 2006 through its Platinum Group Holdings II. This is a private equity fund that invests in small to mid-market, private companies that are experiencing a critical transition with the strategy to acquire controlling interest, apply Platinum’s management expertise and build the business.

Platinum Group partners assumed executive positions, including Dean Bachelor as chairman and chief executive officer and Glaydon Iverson as chief financial officer. They oversee the financial side of the business by establishing forecasts, financial controls, strategic planning, and new banking relationships. Platinum partner Steve Coleman executed a new sales and marketing plan. Day-to-day operations continue to be managed by the same general manager, Cherie Manning. Platinum implemented its standard all-employee bonus program, based on cash flow, to motivate the company’s employees and has paid each employee bonuses totaling more than $1,000 since the acquisition. The original owner continues to contribute on a part-time basis by designing new products, which his is passion and expertise.

Results

The business is up 23 percent over last year in revenue and has recently moved to expanded office/warehouse space in Blaine to handle the new growth. Much of the growth and new value are coming from renewed marketing and web sales efforts, an investment in technology and infrastructure where manual processes are being replaced with a more sophisticated, best practices approach.