Breaking the $1 billion barrier: A NASDAQ-listed firm in the professional high-end of the staffing industry (healthcare, IT, engineering) worked with Waterstone to develop a set of growth strategies to reach $1B revenue over the next 3-4 years. 

The Issue

Our client was emerging from the recent downturn, and needed to aggressively ramp up growth efforts to capitalize on emerging recovery. The core business presented multiple challenges: 1) The staffing industry had experienced one of the most significant downturns in decades, and client revenue had declined by almost 40%; 2) While our client was reasonably well diversified , and was able to maintain industry leading EBITDA margin performance, most businesses were sub-scale and had identified mostly incremental, niche growth opportunities; and 3) Given stock market dynamics, making SG&A investments in organic growth presented significant challenges to maintaining share price performance.

The CEO and Board of Directors looked to Waterstone to drive the strategic planning process in order to help identify and prioritize growth opportunities and ultimately for Board approval. 

The Approach

On a global basis, Waterstone partnered closely with the CEO and his executive team, including Division Presidents, to identify and screen a series of large, addressable growth opportunities. Our engagement started with a detailed review of existing business performance and an assessment of core market attractiveness across four business units. In parallel, we evaluated adjacent market and diversification opportunities, as well as current execution capabilities and constraints. Ultimately, we developed a three year portfolio strategy to help company break $1B revenue goal. We worked with Management Committee/Board to priorize growth initiatves, and develop execution roadmap.

The Results

$400M+ mix of organic and acquisition based growth opportunities were identified and a 3 year revenue target of $1B was established. Two years after our work, this client had achieved revenue of $1.3B through both organic growth and a strategic acquisition; the company’s stock price had risen by 230% over this period.

Waterstone brought a senior team with deep strategy development expertise and a pragmatic appreciation for how different growth scenarios would impact our financial performance and share price. Their approach to fact-finding was efficient and collaborative, quickly helping us develop unique insights and screen opportunities. It was impressive to see Partners - who previously held senior positions at large firms, roll up their sleeves and work closely with our team.
— Chief Operating Officer