Well established international medical device contract manufacturer based in Dallas, Texas needed new capital for to expand distribution and bring new products to market. The company’s owners also had an interest to sell 30% of the founder’s equity at $30mm pre-money valuation.
“Bringing products to market post-Covid pandemic economy requires additional capital and a partner to help grow new opportunities” founder Bill B. said during an early call with Marabek. Bill B. began his career at Johnson & Johnson in the late 80s and started his contract manufacturing operations in Singapore and China in 2004 after two decades in medical device operations.
Growing in a World plagued with supply chain issues.
Marabek redrafted a new business presentation with revised pro-forma and budgets to highlight capital uses and proceeds. We approached with the idea that the Company had an experienced management team and proven track record to execute a strategic plan based on a strong pipeline of new medical products.
With revenues over $65mm with average gross margins over 35% and a scalable distribution network for over 24 medical devices and equipment across 83 US based wholesalers and dealers. The Company boasted very low debt and a high level of inventory assets. Marabek’s advisory team formulated a streamlined process to manage supplier lead times, shipping/transit schedules as well as a demand-based order forecasting system using an existing ERP, SCM and MRP software underutilized by the Company.
Measured process = better results in less time.
The projections and forecasts were highly defensible given the Company had never operated within a metric driven system. Key KPIs were established early and the benefits were realized in short window. Improved order management and scheduling allowed for a more structured operation the Company could show were impactful.
By the end of Q4’22, the Company was able to raise $10m in new capital from two investment firms based in NY and GA respectively. Both firms decided to partner and help Bill plan a more robust growth plan based on their previous investment experiences. Marabek acted as the primary strategic business advisor and provided due diligence support throughout the process.
Marabek is a strategic business advisor based in Minneapolis and has deep experience in supporting companies across the world find new capital, structure operations, seek talent, provide resources and execute business plans based on target market. We work with over 145 US based and 80 international investment firms that include VCs, PEs, family offices, banks, lenders, alt capital and private investors. Our global database comprises of over 31,000 contacts at every level where strategic capital resides. Reach out to us and see if we can help you grow your business.
