Obsolete Electronics Reseller
The Challenge
Our client was interested in acquiring an electronic component distributor who focused on end of life or obsolete technology. They sold into healthcare, industrial, and telecom spaces, and had authorized status with OEMs. The banker and the firm had positioned the business as having no direct competitors. Initially, the client needed to speak to executives from OEMs to understand the firm’s differentiation and verify the claims of uniqueness. They were on a tight timeline—they spoke with us on a Friday, and needed calls by the end of business 4 days later, on Tuesday.
Target Profiles
They needed to consult with River Guides who had served as senior executives at OEMs. They wanted impressive individuals who could explain in depth the value proposition of the EOL distribution space, the feasibility of future growth strategies proposed by the business, and thoughts on M&A. They needed these individuals to be removed from the space without any conflicts of interest, as they wanted someone to review CIM materials and attend management meetings with them. They also were interested in SME executives who had served at similar companies, if we could locate any.
The Search
The research team set out to identify senior C-suite executives who previously served at major OEMs in aerospace, military, and healthcare markets. The research team also looked for former executives from EOL/obsolete distribution firms.
The Results
Within 5 business hours, we presented multiple potential River Guides and one SME:
- Former CIO and VP Global Components | Arrow Electronics
- Former CEO | Stock-Point Electronics Inc
- Former President Global Business Units, Chief Logistics Officer and COO | Avnet
- Former Chief Strategy, Innovation, and M&A Officer, SVP Global HR Solutions | Avnet
After discussions with all four advisors we introduced, the client felt comfortable sharing the CIM with two River Guides. Our client learned there is a duopoly between their target and another firm. The competitor is much larger and longer standing. They wanted to talk to anyone from this larger firm, regardless of level, to understand their value prop, differentiation, and how they viewed the target firm.
Within 2 business days, we presented multiple SMEs:
- Former Sales Manager, Americas | Competitor
- Former Production Control Planner | Competitor
- Former Regional Sales Manager | Competitor
Last Word
The client engaged with two of the advisors, sharing they learned more than expected. They felt comfortable moving forward with the acquisition, and successfully closed on the company. They placed one of the River Guides from the OEM as an independent board member to help execute on their investment strategy.