Case Studies and Management Partner Endorsements
Resonetics is a laser micromachining company that provided contract manufacturing services to medical device, telecommunication and electronics businesses. Their proprietary technologies enabled them to use lasers to make features in devices with tolerances as small as one micron. The Resonetics team makes millions of life-changing device components, such as embolic filters, blood stents and diabetes leads, annually. Their passion for technology allows Resonetics to solve complex challenges and develop the next generation of life science devices.
“Corporate Fuel recruited me to join Resonetics as CEO in August 2012. With their full support, Resonetics tightened its focus on the life sciences market, divesting an industrial product line and investing in Marketing and Sales to promote the company’s technical leadership in laser micromachining. In parallel, we bolstered the management team where we had gaps and brought in state-of-the-art laser technology to enhance our capabilities. Revenues and EBITDA accelerated rapidly as we were able to penetrate industry leaders and land major new programs, leading to a very robust sale process with a great outcome for Resonetics stakeholders. The team at Corporate Fuel was able to see around the corner and supported the repositioning of the business. They were patient, honest and pragmatic and proved to be excellent stewards of the company. It was a great pleasure to work with them.” - Tom Burns, CEO
Corporate Fuel made its original investment in Resonetics in October 2007, investing a total of $4.3m in two rounds. The business was sold in 2014 to Sverica (another private equity firm) who continues to employ the same senior management team and grow the business, recently completing two add-on acquisitions. During its seven years of oversight, Corporate Fuel implemented the following:
- Facilitated appropriate capitalization to accommodate growth needs, notably significant capital expenditure requirements for expensive lasers, implementation of a full ERP system and the move to a new state-of-the-art location.
- Obtained ISO 13485 certification (medical device quality management system) and implemented broad quality/improvement culture.
- Brought in a strong CFO.
- Implemented a detailed cost accounting system and practices to measure gross margin by product, workstation and customer, among other things.
- Established discipline around flash reporting and KPI’s, leading to steady improvement in profitability. Specifically, in 2008 sales were $12.4 with an 8.9% EBITDA margin. By 2013, sales grew 25% to $15.5mm and EBITDA margin expanded to 18.7%.
- When our partner-CEO retired, we recruited a new CEO with substantial medical device sales and marketing leadership expertise.
- Established rigor and discipline around a sales pipeline with weekly update meetings and integrating finance and operations to facilitate new orders.
- Established good corporate governance with outside, industry expert board members, regular board meetings and a disciplined focus on performance-vs-budget.
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