Business Restructuring and Transformation
TAC Worldwide provides temporary and direct-hire staffing services in North America, Europe, and the Asia/Pacific region.
ISSUE
Gary DiCamillo was hired to turn around a money losing $800M technical staffing company with the mission of selling the company in 3-4 years. The UK subsidiary was technically in default and many US customers were unprofitable. Long-time management was entrenched and in disarray. The founder/owner wanted to retire and sell the company.
SOLUTION
Cash flow stability was quickly achieved, and the business model improved by reducing overhead headcount by nearly 40%. Unprofitable customers were reduced, and profitable customers were identified and developed. The company’s balance sheet was refinanced to create capacity for a new marketing strategy and higher growth. “Bolt-on” acquisitions were pursued, and 26 of them were completed in under three years.
RESULTS
After three years, TAC Worldwide was sold for 15X EBITDA, and the founder/owner was able to retire comfortably. The resulting company was then rebuilt with an aggressive growth strategy, achieving a 13% compound revenue growth over the next three years. Profits grew by more than 300%, and the company was then sold again for five times the original sale price.
