A biofuel producer had mitigated unfavorable credit and market conditions by entering into long-term manufacturing contracts with global energy companies. While helpful in weathering the short-term downturn, once conditions normalized, the producer was left underutilized, underperforming financially and unable to seize more attractive business opportunities.
Based on financial guidance from an experienced executive, now a NextLevel team member, independent product marketing and sales became the top priority. Planning and execution elements included building customer relationships, developing product pricing models, obtaining bank and vendor credit and conforming the company to downstream industry norms (e.g. tax registrations and pricing products based on futures contracts).
Within two years, the company had ended its manufacturing contracts and replaced the whole book of business with independent sales. This made for a stronger company because the firm was not reliant on a few major customers, had expanded its operations geographically and built its reputation in the industry. In the first full year after the transition, production volume increased by 34% and EBITDA by 104%.