Crafting a Future: Strategic Business Separation Positions Furniture Maker for Expansion

An award-winning solid wood furniture maker, facing cash flow challenges due to the Covid period, required additional investment. Seric was responsible for restructuring the business, developing a growth strategy, and positioning it for further investment. This was a founder-led business where the founder, a renowned designer, was constrained by managing all business elements and needed to focus on design and brand.

The restructuring involved splitting the business into a design business, based on fee and royalty income, and a production business with high-volume baseload product and custom work. The design business was positioned for international expansion through licensing, while the production business was prepared to attract local government funding. These separate units required distinct cultures and expertise. Seric introduced performance criteria for key positions, assisted with recruitment, and supported the recruitment of key staff to provide the founder with additional capacity to focus on value-maximizing activities.