The Organization
Highly specialized service business, primarily in the aviation field, was started by highly energetic and motivated entrepreneur with very limited capital. Starting with first year sales of $100,000, revenues had been doubling each year for five years.

The Situation
The owner/entrepreneur was concerned about a possible slowing in growth rate and also wanted to be able to realize some of the value of the business in the coming years through increased "takeout".

The Approach
Pace began working with the company to (1) assist in developing a strategy for continued growth, (2) reduce the firm's dependence on the founder and (3) identify a means of developing liquidity for the owner.

In the first phase, Pace made an overview assessment of the company and worked with the owner to identify areas of best growth potential. Pace also established the operating structure, which would be needed to support a continued fast growth.

In the second phase, Pace assisted in developing a comprehensive strategy and implementing the related programs. Pace also helped in recruiting several key management personnel to begin the longer-term building program. Techniques were also established for the owner to begin using some of the capital he had developed in the business.

The third phase was a supportive and counseling activity, advising on, and evaluating acquisitions and continuing to monitor the progress.

Results
Growth of the business continued and the owner became a totally passive investor.

Return to Case Histories