When Cadre Partners became involved, this information services company had less than $1 million in revenue. Two partners owned the business, although one partner had provided almost all the funding. They had a vision to provide consumers with user-friendly evaluative information to help with specific purchasing decisions, but they lacked the capital and the resources to pursue this vision.
The company needed to put together an incremental business plan and a financing plan to realize its goals over a two to three year period. If the plan and resources could be put in place, the business faced challenges comparable to those of a new company in an emerging market. These included hiring new professionals, selling to new customers, and gaining important relationships with key vendors.
The business needed some critical resources to grow. Cadre helped the owners focus their thinking and then played an active role in helping them attract the necessary resources. Cadre also played a leadership role on the board. First, the company raised almost $15 million in private equity from two leading private equity investors. Second, the company attracted several key executives to fill positions in the company, including CFO, development group leaders, and sales and business development professionals. Cadre worked extensively with the two owners to interview and recruit these professionals. In the early years, the business grew modestly and it was critical to marshal cash resources until revenues accelerated. When the market was recognized, revenue growth was dramatic. The company was once again faced with the challenges of increasing capacity and attracting more key professionals.
Today, the company earns annual operating income of more than $5 million and profits continue to grow. An excellent team of professionals manages the company and shareholders earned an annualized return on their investment of well over 50%.