THE PORTFOLIO COMPANY

The company specializes in system integration, focusing on reducing client risk and enhancing project efficiency through clear communication and certified best practices. They emphasize adaptive automation technologies to lower ownership costs and improve productivity. Their approach includes a comprehensive process from data management to machine building. Their "FAST" framework outlines their expertise in automation, engineering, programming, and training, aiming to provide tailored solutions for a diverse clientele, including researchers, manufacturers, and governments, to ensure the lowest total cost of ownership.

THE PRIVATE EQUITY FIRM

A US-based, family and founder-owned Private Equity firm, established in 2010. The firm specializes in investing in the lower to middle market in manufacturing, industrial, and distribution companies across the US. They have completed 30 acquisitions and have a strong and experienced team driving growth and supporting their portfolio companies. Among several huge achievements, the firm has won multiple awards including 2021 ‘Firm of the Year’ and ‘PE Deal of the Year’. The firm already has a strong portfolio of companies including several notable names.

THE CULTURE

This first-time private equity-owned business, previously led by a philanthropic founder, prioritizes its people and fosters a family-like atmosphere across its independently operated offices. While known for team-building activities and employee friendliness, the company operates under a traditional, office-based model, now transitioning to incorporate remote work. Despite being deeply connected to customers and projects, the company struggles with unsophisticated management systems, a lack of discipline, and a deficiency in proactive initiatives and business acumen. Further, the team requires additional inspiration and motivation to drive meaningful change.

VISION

• What does success look like in this role?
• Aim for $100M in revenue to exit
• Achieve 15% EBITDA to exit
• Complete and integrate add-on acquisitions
• Target a 5 to 6 years investment horizon
• Focus on maintaining the Pharma niche
• Work on expanding the narrow customer concentration
• Prioritize increasing customers in Pharma first, followed by Food & Beverage
• Successfully increased EBITDA by 25% since acquisition
• Anticipate the exit multiplier to be in double digits
• Tasked with unifying operations across three locations
• Implementing tailored systems & KPIs for human capital-intensive setup

KEY SELLING POINTS OF THE ROLE

• Robust pipeline of 20 add-on acquisitions
• Closed one add-on, with another $7M nearing LOI
• Strong, well-connected board members
• International organization poised for growth
• Industry offers substantial tax breaks for automation implementation
• Favourable macroeconomic trends in the industry
• Abundant capital for acquisitions
• Focus on automation, growing at 8% annually
• Target market represents 12% of the $200Bn industry
• Highly regulated customer base, yielding higher margins
• Expansion plans into wastewater and consumer sectors
• Targeting a $5Bn addressable market in their niche
• Attractive sector for private equity firms
• Industry characterized by fragmentation and acquisition opportunities

KEY CHALLENGES FOR THE ROLE

• Integrate add-on acquisitions effectively
• Improve timeliness of monthly financial
• Adapt to Private Equity ownership mentality
• Establish robust financial controls and processes
• Address multi-currency transaction complexities
• Set KPIs for engineering labor considering utilization
• Upgrade to a more advanced ERP system, like NetSuite
• Diversify client base
• Implementing financial discipline and leadership
• Create coordination among current offices and add on acquisitions

YOUR BACKGROUND

The successful individual will be able to demonstrate experience in the following:

• Demonstrated strong buy-build experience.
• Significant international exposure.
• Experience with cross-currency transactions.
• Successful ERP change implementation.
• Private Equity backed.
• Services experience in automation and controls, software development (Pref)
• Human capital services experience of an industrial application
• Achieved $50m in revenue.
• Operates across multiple sites.
• Proven CFO or number 2
• Client diversification
• Multiple sites
• Professionalize a company
• Skilled in professionalizing companies.
• Strong commercial and business acumen.
• Focused on client diversification

YOUR CHARACTERISTICS

The successful individual will display the following characteristics:

• Confident and bold.
• Fast-paced with intensity.
• Organized.
• Self-directing.
• Gravitas and commanding presence.
• Resilient.
• Data-driven, detail-oriented.
• Hands-on approach.
• Prioritize team needs.

LOCATION

Indianapolis - https://www.numbeo.com/cost-of-living/in/Indianapolis

COMPENSATION PACKAGE

Basic Salary: $200,000 - $225,000

Bonus Package: TBC, attractive

Equity: Yes, details tbc – 1%-1.5%

401k & Healthcare: Details tbc

Learn more: https://youtu.be/1-FzMAAxVpY

Raw Selection is an executive search firm working exclusively with Private Equity firms and their portfolio companies across Europe & North America.

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