Case study

Innovative Electronics Corporation

Overview

REAG was engaged by Innovative Electronics Corporation (“IEC”), now Aragra Technologies, to grow the company through acquisition. The printed circuit board space is segmented into long-run and short-run production. The majority of the long-run production is done off-shore. Short-run production is done domestically but is highly competitive resulting in extremely thin margins for industry participants.
Services
Buy-Side: Strategic Acquisition Services
Industry

Electronics Contract Manufacturing

Challenge

The client desired to grow company revenues and add scale to its short-run production business. Management’s expertise was primarily operational and they lacked a strong outside salesforce and new customer acquisition capabilities.

Solution

REAG was hired to grow the company through acquisition. The focus of the engagement was distressed companies that lacked the scale to operate profitably as stand-alone entities. Due to the strength of the client’s management team and their operational focus, it was determined that the consolidation of smaller, distressed opportunities would afford management the opportunity to leverage its strengths.

Results

REAG grew the client’s annual revenues by 500% through three strategic acquisitions. All three acquisitions added meaningful customer accounts to the client’s core business from industries such as medical device, commercial, and aerospace. Management focused its efforts on streamlining and consolidating operations to generate profitability from the acquired revenue base. The combination of REAG and client management has been a resounding success by all accounts.

1
Completed transactions
1
Years
1 %
Revenue
growth

Testimonial

The following testimonial was made following the first two acquisitions. We have since made another one, as noted above, so we worked together again!

“On behalf of Innovative Electrocircuits Corporation, I would like to express my sincere thanks to you for the persistent effort you put into closing a deal for our new acquisitions. We appreciate the time you put in with us over the past 12 months before closing two deals, both of which we are fully satisfied with. You consistently showed a persistent attitude, a pleasant personality, and great professionalism throughout our 12 months of working together. After seeing the deals come together for our acquisitions, I can confidently say that my team as a whole is impressed with your services. We would certainly recommend your name to anyone who is looking for an acquisition or is looking to sell their business. Again, thank you for your services, and hopefully, we can work together again in the future.”

Bob Monpara, Shareholder, Innovative Electronics Corporation