1. Situation

Our client, a market-leading automotive supplier, faced a short-term decline in volumes, sales, and margins due to a short-term market shock. The company had been carved out from the group structure and invested in by a private equity firm with a high ambition for long-term growth.

Key objectives included stabilizing the medium-term earnings situation by closing an earnings gap. The key long-term objective was to improve the enterprise value and identifying additional long-term growth potential, aiming to achieve the defined annual sales and profit targets.

2. Approach

The project began with an in-depth analysis of the company’s technological capabilities and gaps. We conducted a thorough competitor analysis including the product portfolio and identified areas to better seize and explore competitive advantages. This analysis served as the basis for assessing growth potential for new products, new value propositions, better targeting specific customers segments, and markets.

We also identified growth options through strategic partnerships for selected partner companies and targeted mid-market M&A along the value chain. We worked closely with the regional heads to break down the global strategy into the three regional market strategies, laying the foundation for a robust, aligned international growth strategy.

All shortlisted market growth options underwent a detailed evaluation regarding the potential value add and ability to win, ensuring viable and profitable options were pursued.

3. Results

We identified and assessed key growth opportunities, ranking them by priority. Our work led to an updated R&D strategy, identifying short and long-term growth drivers. We also discovered strategic partnership and M&A opportunities, detailing these to clarify our client’s expansion strategy and initiate partner discussions.

Armed with this strategic plan, our client is set to meet ambitious targets, including sales goals, EBITA margins, and growth rates. The strategic partnerships and M&A paths we identified ensure sustainable growth, demonstrating our client’s resilience in a competitive market.