Background and Challenge
A leading U.S. private equity firm, whose portfolio company provided light repairs for light vehicles engaged L.E.K. to identify growth opportunities, including a D2C offering, F&I (finance & insurance) plan offerings and an adjacent service line.
Approach and Recommendations
We launched simultaneous interview and survey campaigns, reaching more than 1,500 customers, competitors, and industry experts in order to assess growth prospects in the three adjacent markets of interest. Combined with secondary research, these insights allowed us to form a view on market size, growth potential, recent trends, and competitive landscapes in each of the markets of interest. While the work validated these expansion opportunities, it also highlighted the changes that would be required for the company’s go-to-market strategy and the execution risks in moving beyond the core business. We worked with management to outline a road-map that leverages the capabilities of the company to deliver these initiatives.
With these findings, the client had a clear roadmap to guide growth and confidence, not just in the next year’s budget but a five-year roadmap to create a differentiated company. With a clearly articulated growth plan in place, the private equity owner was later able to capitalize on the company’s faster growth trajectory and sell it at a very attractive valuation.