A rugged strategy and value improvement project
BOH, established in 1998 and based in Fort Worth, TX, manufactures and distributes durable shipping containers with secure interior storage units. The shipping containers are used for moving/storing various parts, tools and equipment during military deployments around the globe. BOH containers are shipped via ground, sea or air and enable military units to deploy on short notice and be up and operational quickly.
BOH is well-respected and its rugged, mobile, customizable storage systems are considered essential for Army installations all around the world. However, as the future of war shifts, BOH wanted to ensure it would grow and develop products to meet future military needs.
Having worked with its investment firm, Anchor Partners, on a previous project, Maven was engaged to help assess organic growth and potential acquisitions. The Maven team was able to hit the ground running based on its past experience with this company and industry.
As BOH looked forward, it saw growth opportunities, but wanted to better understand how different growth opportunities would impact its future valuation. Through one-on-one interviews with industry experts, bankers, brokers, PE firms and future buyers, Maven was able to identify various levers (end markets, customer concentration, EBITDA margins, etc.) that would impact the future valuation. Understanding the details of each “valuation lever” enabled BOH to adjust its strategy and to focus on activities that would benefit it in the long term. (Read more about how Maven approaches Valuation Projects.)
There are few situations in business that are new, and there is tremendous value in evaluating various competitors strategies. Companies can benefit from understanding the hard learned lessons that led to different companies successes. With this in mind, Maven reviewed the several competitors in the military supply space to determine elements that made them each successful as well as reviewing their strategies. The lessons learned during this research informed later recommendations, but first it was important to understand the future of warfare, in general.
The future of warfare
BOH’s core product feeds perfectly into the Army’s current operations. Large base installations in the desert delivered by sea on Navy vessels. Through secondary research and validated with expert interviews with former Generals, Maven identified several expected shifts in future warfare. While there would be changes, one thing would remain constant – equipment (tanks, planes, drones, etc) would need to be maintained in the field. And BOH’s core product would be in demand, though in formats different than today. It was important for BOH products to adapt to this change to meet future military needs.
Based on its findings, Maven recommended a growth strategy approach that combined organic and acquisition targets. Organic growth opportunities included product features important in new combat situations as well as business development in other branches of the military such as the Air Force. Additionally, acquisition targets were determined based on a list of criteria and a short list was provided to the team for further discussions.
The three phases of this project helped craft a go forward strategy for BOH. By understanding what will drive future valuations, how similar companies had succeeded and failed and where the market is headed, the Maven team was able to help the management team chart a course for future success. With the new strategy in place, BOH will be in the right place at the right time with the right product.