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About Recycle Technologies
Gary Gunderson founded Recycle Technologies Inc. (RTI) of Wood Dale, Illinois, in 1994. He grew it to be the largest and most experienced antifreeze service in Illinois. RTI products were sold to commercial, government and retail clientsType your paragraph here.
The Business Challenge
In 2011, Recycle Technologies had a dominant share of the Chicagoland market, and growth was starting to slow. Gary wanted to continue to grow the business, and to sell it for a higher price in a few years. He was considering expanding into Wisconsin, or building a second Midwestern processing plant.
Case Study: Emerging Opportunities
Photo by John Sibilski/ Wonderful Machine, Bloomberg Business
How We Helped
Skiba Associates was asked to analyze the options for growth. We identified large metropolitan areas that could initially be serviced from the Chicago facility. We prepared a full business plan, including market analysis, financial modeling, key success factors, and strategy. The business plan allowed Gary to make an informed decision on the best path to take.
Immediate: Gary decided to initially open a new distribution center in the Milwaukee area. This allowed him to use excess capacity in the existing plant. The capital investment was limited and the new distribution center broke even within a few months.
Mid-term: We used the financial model to monitor financial performance. We noticed that profit margins were decreasing due to higher costs of source waste antifreeze. Gary was able to adjust his prices, and profit margins returned to their previous levels.
Long-term: In 2013, the recycled antifreeze market in the U.S. was consolidating. Gary decided this would be a good time to seek a buyer. The expansion plan provided extra value by demonstrating a growth path. RTI was sold for Gary’s dream price later in 2013.