The Client was a publicly traded multi-national with vertically integrated operations throughout the United States. In one of its Mid-Atlantic markets, the Client was navigating multiple challenges, which included depleting reserves at its flagship location, increasing costs at another location, the entry of two new producers into the market, and recent changes to its local management team.
The Client engaged Inlet Capital Group to assess these threats to its market position and explore options to address in an optimal manner.
Inlet Capital Group engaged as strategic advisor to the Client and launched a multi-pronged assessment of the situation. We first developed an analysis the market to ascertain supply and demand, segment the market by product and geography, and identify the areas in which the Client was best positioned and most vulnerable. We then compiled competitive intelligence to understand the objectives of the new entrants and identify any impediments to achieving those objectives. Finally, we analyzed the Client’s operations to determine the cause of its rising costs and confirm reserve life.
These analyses revealed key insights related to the profitability of the Client’s historical geographic focus, and the struggles of the new entrants to balance their plants, establish meaningful customer relationships, and secure the capital necessary to cement their entry.
The Client implemented all of Inlet Capital Group’s recommendations, first refocusing output from its existing sites on more profitable sub-markets, then entering into a wholesale supply agreement with one of the new entrants. This restored the client’s profitability, extended reserve life, and mitigated the impacts of the new entrant with minimal capital outlay.