Shooting for New Growth Targets

How Platinum managed growth in revenues and profits through owner transition.

Situation

Law Enforcement Targets, Inc. is a privately held 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 due to his desire to pull away from the business quickly.

Challenges

  • The owner was spending time away from the business to address personal health issues.
  • The business needed management leadership with experience to take the company further.
  • The opportunity to grow had been limited due to the staff and facilities.
  • There was a pressing deadline to take action.

Response

After conducting due diligence, Platinum stepped into leadership of the company in August 2006 to build the business. Platinum partners assumed executive positions, including Dean Bachelor as chairman and chief executive officer and Glaydon Iverson as chief financial officer. They oversaw the financial side of the business by establishing forecasts, financial controls, strategic planning, and new banking relationships. Platinum partner Steve Coleman guided the development and execution of a new sales and marketing plan. Day-to-day operations continued to be managed by the same general manager. Platinum implemented its standard all-employee bonus program, based on cash flow, to motivate the company’s employees and paid each employee bonuses of several thousand dollars over the ensuing years.

Results

The business grew 23 percent over one year in revenue and moved to expanded office/warehouse space in Blaine to handle the new growth. Much of the growth and new value came from renewed marketing and web sales efforts, an investment in technology and infrastructure where manual processes were replaced with a more sophisticated, best practices approach. The founder continued to contribute through part-time involvement by designing new products based on his passion and expertise.

In 2010, a complementary industry provider of vertically integrated products and services acquired LET, now a larger, more profitable company. The founder is still providing advisory and design services for the new company owner, and he has become a resource doing design and research for the Platinum Group.

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