Second Stage Automotive Manufacturer

Client

A second stage automotive manufacturer.

Company Profile

• Manufacturer / converter of handicap accessible minivans
• Privately owned enterprise
• West Michigan location
• Annual revenues of $12 million
• 35 employees

Challenge

A significant investment had been made in prototyping a fuel efficient purpose-built vehicle to accommodate the needs of physically handicapped passengers. The company needed to raise equity capital in order to launch the product. Management lacked the capabilities and resources to develop and present a prospectus and strategic plan to prospective investors.

Findings

The product to be launched was very well engineered and designed to utilize various chassis, electrical, and driveline components in current production from General Motors Corporation. With the advent of the Americans with Disabilities Act, the demand for these products was forecasted to be very high, and those manufacturers with compact designs and high fuel efficiency would dominate the marketplace. A professionally prepared prospectus presented to potential investors who demonstrated a strong desire to enter this industry was necessary.

Results

The company engaged the consultant to assume the role of an interim CEO to prepare a prospectus that included strategic plans for marketing and production of the vehicle, complete with forecasted financial statements and cash flow schedules, and made presentations to several interested parties. The desired transaction did not take place as the sole owner was unwilling to forfeit a controlling interest in the company’s equity in exchange for the substantial investment needed.