Investing in a Start-up Energy Appliance Company
Client’s Challenging Situation:
We invested in a start-up energy appliance company. When we arrived, the company had a great vision but was in a crisis. The company was undercapitalized, and it needed cashflow management assistance.
Scope of the Problem:
The company, which we invested in and served as we would serve a client, had strong energy appliance domain expertise and an enthusiastic attitude toward sales. However, they lacked a strategic plan to support their vision and, to accomplish their vision, they needed to improve their management of cash.
We made a small cash investment and, as sweat equity, we created a strategic plan and a cash management plan for the owners. We helped one owner take full control of the company, so he could pursue his vision.
The Value Delivered:
We brought the company to a new level, with the addition of e-commerce. Later, after the company was stabilized, we exited the investment. The owner of the company was able to pursue his vision.