MANUFACTURING TECHNOLOGY CASE STUDY
$5M Turnaround: Inside Sales Xceleration's Sales Growth Strategy
$5M Revenue Growth
2.5x higher than the previous annual revenue growth record
3.5x Increase in Sales Margin
From 10% to well over 35%
55x Return in One Year
On the investment in Sales Xceleration’s growth services (cost vs. top-line revenue)
Investment Profile and Challenges
A PE investor acquired a 50+-year-old manufacturer of screen media for the aggregate, mining, recycling, and industrial industries, generating ~$17M in revenue.
The investors had two key expectations:
Achieve significant short-term revenue growth
Sell the company within a five-year holding period at a higher multiple
However, three years into the investment period, they recognized their goals were not on the right track. They experienced:
Steady decline in their top-line revenue and EBITDA
Struggled with senior leadership changes
Sales team members departed, which made it difficult to turn things around
Portfolio Company Challenges
In addition to sales team turnover and lack of sales leadership over the previous three years, the portfolio company suffered from several challenges that ultimately impacted its revenue growth goal.
The President/CEO’s lack of sales leadership experience significantly hindered the ability to diagnose and address the root causes of declining revenue within the portfolio company. This deficiency in leadership resulted in the absence of a clear sales strategy, leaving the sales team without direction and failing to define an ideal client profile, which in turn stifled market expansion.
Revenue growth goals were not being met, resulting in:
Inability to scale into new markets
Limited visibility into the sales pipeline, affecting planning, forecasting, and coaching
There was no documented sales process, methodology, tools, or analytics, resulting in:
- The sales organization was weak, with too few salespeople in the field.
- The compensation plan failed to incentivize high-margin sales.
- Poor sales performance and an uncompetitive compensation plan hampered their ability to attract quality talent.
- The hiring process was unclear, leading to unqualified candidates being hired.
The Investor's Challenges
Due to declining revenue, the PE firm had to step in to manage the portfolio company. The President / CEO, lacking the necessary sales leadership experience, was trying to lead sales efforts without success.
The following challenges had a significant negative impact on the company's valuation, the investors’ exit timing, and the expected multiple:
The organization's sales were heavily reliant on a single team member, greatly increasing the company's risk profile
Three years in, no new customers were added, increasing concentration and sparking investor concerns about competitiveness and growth
Only 40% of manufacturing capacity was used, with most sales tied to low-margin products (~10% margin), further straining EBITDA
The Solution
The Investor/PE company introduced Sales Xceleration to the President of the portfolio company, encouraging him to utilize external resources. The Sales Xceleration engagement consisted of three stages:
Sales Assessment & Discovery
A comprehensive one-month assessment of the sales department and infrastructure was conducted. The CEO, Board, and PE investor received a detailed analysis that outlined key issues and provided high-level recommendations.
Fractional VP of Sales
The President/CEO brought in a Sales Xceleration advisor as a Fractional Sales Leader. The advisor implemented a 100-day corrective action plan, managed the sales team, and ensured accountability to drive lasting improvements and future growth.
Hiring and Coaching
The Fractional VP of Sales assisted with the hiring of the new sales leader and is staying engaged in coaching the new leader to ensure a successful handover and continuity of the revenue growth trajectory.
Portfolio Company Outcome
Due to declining revenue, the PE firm had to step in to manage the portfolio company. The President / CEO, lacking the necessary sales leadership experience, was trying to lead sales efforts without success. The company achieved $5M in revenue growth, marking a 2.5x increase over the previous annual record, a remarkable turnaround from a period of strict bank scrutiny that had stifled growth investments.
Post-implementation they:
Surpassed growth goals
Fulfilled bank covenants
Restored financial health
Increased Sales Margins
The implementation of CRM and forecasting tools allowed for accurate planning and capacity optimization, empowering the sales team to clearly articulate product value, unique differentiators, and competitive advantages, resulting in more wins.
The overhaul of the sales infrastructure fostered repeatable, predictable, and profitable growth, supporting the new sales leader in maintaining this trajectory. Ultimately, the scalable sales model enabled the company to enter previously unexplored adjacent markets.
The introduction of a new compensation plan incentivized the sale of high-margin products, which increased margins from approximately 10% to over 35% and better utilized manufacturing capacity.
The new sales strategy delivered:
- Clarity on success metrics and standardized processes for selling profitable products.
- Expanded and diversified customer base and distribution channels.
- Increased sales commissions, boosting team retention and unifying leadership around growth priorities.
- Established a sales engine for predictable revenue growth and market expansion.
- Gained clear understanding of the SAM (service addressable market), enabling data-driven growth goals that improved sales team morale and execution.
PE/Investor Outcome
With a $5 million revenue growth in the first year, reversing three years of decline, the investment is now on track for a highly profitable exit, exceeding original growth expectations. Investors could realize a 3x cash-on-cash return with a short-term sale, or hold for a higher multiple in the future.
Sales Xceleration’s sales growth service was considered an add-back, minimizing the EBITDA impact. Initially contracted for 12 months, the engagement achieved and surpassed growth milestones in just 6 months. The Fractional VP of Sales assisted in hiring a permanent sales leader and transitioned responsibilities six months ahead of schedule.
As a result, the portfolio company is now an attractive investment with a strong growth narrative:
Sales dependency on two key individuals was eliminated, reducing risk
$5M annual revenue growth bolsters a strong trailing twelve-month performance
A 3.5x increase in sales margin, from 10% to over 35%, and a higher win rate
The scalable sales process could expand the company 5x across the U.S. in the next decade
The Return on Investment
Prior to the Sales Xceleration engagement, the portfolio company was causing the investment team a large amount of stress with the possibility of selling the investment at a loss. However, the investment, led to an impressive 55x return in just one year (cost vs. top-line revenue), turning the situation around dramatically.
The Sales Xceleration service not only exceeded the original expectation of revenue growth but also the length of time it would take to deliver the results. The significant EBITDA improvement was driven by strong top-line revenue growth with the more profitable mix of their products.
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