An EGI Advisor was engaged by a private equity group to provide leadership to an unprofitable environmental engineering and construction business in its acquisition and spin-off from a Fortune 500 company and then serve as active Vice Chairman as well as interim Vice President to address specific issues. The mission was to effect a turnaround and implement growth strategies.
The EGI Advisor was selected as an operating manager to play a key role in due diligence, while simultaneously developing a re-organization plan and Company relaunch strategy. A restructuring effort and carve-out plan was implemented immediately after closing, assuring profitability from inception. Elements crucial to success were to lower the break-even point, mentor the new and inexperienced management team, and execute a well-conceived strategic business development plan. This engagement included guiding the installation of a stand-alone entrepreneurial infrastructure subsequent to the spin-off from a Fortune 500 company while providing leadership to help reposition the Company in the marketplace. Importance was placed on emphasizing commercial and industrial construction, improving costing procedures, and creating new pricing strategies. A critically impactful accomplishment by the EGI Advisor was assisting in vastly strengthening the Project Management function to substantially reduce cost-to-completion and penalty fees. The EGI Advisor also relocated the Company headquarters to save on costs and taxes.
EGI’s Advisor remained as an investor and on the Board of Directors until all parties successfully exited this lucrative investment with a divestiture to a PEG.