Chief Executive Officer - Raw Selection

THE PORTFOLIO COMPANY

The portfolio company specializes in the machining, fabrication, and assembly of high-precision components, primarily serving aerospace and defense markets. With six subsidiaries across the US and Canada, the company boasts strong relationships with prominent customers, including leading aerospace and defense contractors. Key capabilities include advanced 3-, 4-, and 5-axis machining, Swiss machining, and mill-turn processes, enabling the production of complex components used in critical defense and aerospace programs.

Despite its strong customer base, the company faces operational inefficiencies, with significant challenges at its Philadelphia facility. The main platform has potential for significant revenue growth from $9M–$10M to $16M–$20M, and EBITDA improvement from $2M (potentially overstated) to $5M–$6M with proper management and restructuring. The group’s medium-term objective is to consolidate operations, implement best practices, and grow organically while continuing strategic acquisitions to strengthen its market position.

THE PRIVATE EQUITY FIRM

The Private Equity firm focuses on acquiring and growing middle-market companies in industries such as manufacturing, aerospace & defense, business services, and industrial services. They utilize a buy-and-build strategy with investment targets in the $20M–$200M revenue and $5M–$20M EBITDA range. The firm emphasizes a hands-on approach to portfolio management and operational improvement, maintaining multiple offices across North America.

THE CULTURE

The company operates with a traditional and "anti-change" culture. Many team members have been with the company for decades, favoring old-school approaches and resisting modernization. This presents an opportunity for the right leader to drive cultural transformation, introducing transparency, best practices, and innovation. The Private Equity firm's involvement ensures access to experienced advisors and operational partners, creating a supportive yet hands-off environment for the incoming CEO.

VISION

What does success look like in this role?

• Achieve turnaround and growth targets for the main platform, increasing revenue to $16M–$20M and EBITDA to $5M–$6M.
• Address key operational inefficiencies, including streamlining production processes, fixing organizational structures, and improving engineering capabilities.
• Successfully integrate and optimize the group’s subsidiaries, driving revenue to $40M within the current footprint.
• Build a sustainable platform for future growth, with a focus on expanding relationships with major clients in aerospace and defense.

KEY SELLING POINTS OF THE ROLE

• Opportunity to lead a high-profile turnaround in a private equity-backed business.
• Access to strong customer relationships and lucrative defense and aerospace programs.
• Backing by a highly regarded and hands-on private equity firm.
• Potential to achieve significant EBITDA growth and prepare the company for long-term success.

THE ROLE

• Driving the turnaround of the Philadelphia facility, focusing 80% of efforts on fixing the main platform.
• Overseeing operational improvements, hiring key roles such as an Operations Manager and General Manager.
• Addressing cash flow challenges and working closely with lenders.
• Implementing a cultural transformation across the organization to promote transparency and collaboration.
• Expanding relationships with key clients to drive organic growth.

KEY CHALLENGES FOR THE ROLE

• Turnaround of the Philadelphia facility, addressing operational and cultural inefficiencies.
• Resolving cash flow issues stemming from underperformance at the main platform.
• Achieving growth targets while managing tight timelines and stakeholder expectations.

YOUR BACKGROUND

The successful individual will be able to demonstrate experience in the following:

• Proven track record of CEO-level leadership in private equity-backed businesses.
• Extensive experience in the machined components industry, with a focus on defense markets.
• Turnaround expertise, including the ability to identify and address operational bottlenecks.
• Strong operational acumen, with experience driving revenue growth and cultural change.
• Full P&L responsibility in companies with revenues of $50M–$100M.

YOUR CHARACTERISTICS

The successful individual will display the following characteristics:

• Resilient, hands-on, and gritty, with a willingness to spend significant time on the shop floor.
• Intelligent and strategic, capable of balancing short-term fixes with long-term planning.
• Collaborative and transparent, able to build trust with stakeholders at all levels.

LOCATION

Philadelphia, US

https://www.numbeo.com/cost-of-living/in/Philadelphia

COMPENSATION PACKAGE

Basic Salary: $300,000 - $350,000

Bonus Package: 100% bonus based on revenue growth and EBITDA

Equity: TBC

Raw Selection is an executive search firm working exclusively with Private Equity firms and their portfolio companies across Europe & North America.

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