EFFICIENCY, EXIT, CASH: DOUBLE PROFITS, DOUBLE VALUE

pexels-artempodrez-5716000

Background

A $25 million distributor of commercial-grade air compressor systems preparing for ownership transition engaged our firm to help improve profitability ahead of a planned sale.

The owner wanted to exit the business, but while sales had been growing, profits remained flat—threatening the company’s valuation and the return on decades of hard work.

 

Solutions

Our cash optimization process focused on the areas

that most directly impacted profitability and valuation:

 

  • Improved labor efficiency to generate more gross profit per labor dollar

  • Standardized pricing across service and product lines to protect margins
  • Implemented inventory controls to free up cash and strengthen the balance sheet

Conclusion

By aligning pricing, labor performance, and cash management, the company unlocked exponential value—proving that small, strategic improvements in efficiency can dramatically increase both profitability and sale price.

Solutions

Challenges

  • Flat profits despite consistent revenue growth
  • Labor-heavy service division with low efficiency
  • Excess inventory tying up working capital
  • Underutilized pricing controls reducing margins

Benefits

  • Doubled profits in just six months
  • Achieved a 7× EBITDA multiple upon exit
  • Enhanced company valuation exponentially through focused operational improvements

Save money, make money, stay out of trouble, have fun.™

BGW Accounting Firm

Anything But Typical®?

Tired of Typical?

Is your current accounting firm just “okay?”

It doesn’t have to be this way.

Let’s see if we’re a fit

Stay connected.

We have a pretty great podcast & insights that dig into issues you really care about.

Click for the Business Profile for BGW CPA, PLLC
BBB RATING: A+

Our passion lies in partnering with growth-oriented, private, closely held businesses that are frustrated by being stagnant and are ready for lasting change in their businesses and their lives.

BGW is the brand name under which BGW CPA Co, LLP and BGW Advisors, LLC provide professional services. BGW CPA Co, LLP and BGW Advisors, LLC practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. BGW CPA Co, LLP is a licensed independent CPA firm that provides attest services to its clients. BGW Advisors, LLC and its subsidiary entities, which are not licensed CPA firms, provide tax, advisory, and other non-attest services to its clients. The entities falling under the BGW brand are independently owned and are not liable for the services provided by any other entity providing the services under the BGW brand. Our use of the terms "our firm" and "we" and "us" and terms of similar import, denote the alternative practice structure conducted by BGW CPA Co, LLP and BGW Advisors, LLC.

Copyright 2025 BGW. All Rights Reserved.