Prior to JANAS selling their aerospace parts manufacturing company, Loutech, the owner’s son, Ivan, and his wife, Mariana, made key changes to their family business over a decade. The initial change was to move from a centralized decision-making system to a decentralized decision process in which staff learned to solve problems and decide on courses of action. This change helped avoid burnout which had plagued the founder and other key executives over the years.
The son, now CEO, installed an Enterprise Resource Planning System which integrated finances, manufacturing, and supply chain management systems. This ERP system improved productivity and supported the collaborative culture essential for continued growth and eventual exit.
With the help of an Advisory Board, Company culture evolved to become a competitive advantage for the business. Management hired an expert in quality because the Company needed to reduce improperly manufactured component parts. Every morning, they held a “stand-up meeting” of fifteen people representing all key functions, sharing knowledge that boosted quality, eroded departmental boundaries, and increased productivity.
These changes in processes and culture made it much easier for JANAS to sell the company. Potential buyers recognized how the staff was operating collaboratively. The new processes improved their bottom line, and the transformed culture supported a high level of employee engagement. The successful buyer supported the transformed company, making it a triumphant outcome for the owners, employees, and the acquisition itself.
At JANAS, we stand ready to guide owners and their companies through similar transformational changes to get the highest price for the sale of their businesses.
Article Authored by Tom Drucker
Tom, recently appointed as Managing Director at JANAS, brings a wealth of expertise. He possesses a distinguished record of successful leadership and driving transformative organizational change. He is a graduate from the University of California, Los Angeles (UCLA).
