Consumer Products
Helping a leading consumer products company improve operational performance, enhance competitiveness, and drive strategic growth.
Company Background
The “Company” developed and patented a consumer safety device, which sold approximately one million units through a major box retailer. The Company had also established an exclusive licensing agreement with a major Fortune 100 consumer products company, to help establish its brand.
Challenge
The Company, with minimal revenue, was still in its development stage with the founder as its sole representative, and in need of a corporate structure, strategic plan and capital.
The engagement required:
- Conducting thorough due diligence needed to support a capital raise.
- Provide strategic planning for the creation of an operational and capital structure, and a go-public strategy.
- Assist in the formation of the Company’s senior management team and a Board of Directors.
Contributions
- Conducted comprehensive due diligence.
- Renegotiated investor debt and trade payables, and GE license agreement.
- Communicate and negotiate with existing investors.
- Help form a new corporate entity, including preparation of by-laws, executive contracts, an ESOP, structuring consultant contracts and obtaining D&O insurance.
- Developed executive summary, earnings model and investor deck for capital raise road show.
- Recruited auditor and coordinated the entire audit process.
- Assisted in the development of formal accounting procedures, financial processes and capitalization table.
- Secured the initial financing and facilitated the raise of over $3 million to fund operations.
- Managed investor communications.
- Reviewed research analysts’ and investment bankers’ earning models of company.
- Reviewed the Company’s China-based operations and production agreements.
- Managed the transition of the Company’s convertible debt to convertible preferred stock, and ultimate conversion to common stock.
- Assisted with the Company’s IPO and listing on NASDAQ.
Conclusion
The Company has since raised approximately $50 million in additional capital, its current annualized revenue run rate is in excess of $80 million, it has over 96 U.S. and global patents and has added smart home features to its existing technology. Its partnership with the Fortune 100 company remains strong and it recently announced a product development collaboration with one of Europe’s leading consumer products manufacturers.
Joe Zappulla: jzappulla@dutchesscapital.com Michael Novielli: mnovielli@dutchesscapital.com