Case Study: NAL Group
NAL Group is a leading last-mile logistics company. With a customer-first approach, the company warehouses, assembles, delivers and installs products such as dishwashers and other appliances, indoor and outdoor furniture, and electronics on behalf of major retailers. NAL Group was created through the merger of Installs LLC and North American Logistics Group LLC.
Headquarters
Buffalo, NY
Industry
Logistics
Exit Date
March 2020
Transaction Dynamics
NAL Group is the result of two transactions. First, Graycliff partnered with the management of Installs to buy out the founders and augment growth initiatives. Installs then merged with North American Logistics Group to capitalize on their highly complementary and unique capabilities. Both management teams remained with the merged business.
Investment Thesis
Highly differentiated service offering with a solid reputation for customer focus
Growing demand for home delivery with e-commerce and omni channel trends
Broad opportunities to diversify the customer base, given an expanding addressable market and cross-selling potential
Long-tenured customer relationships
Asset-light model with high free cash flow
Attractive valuation
graycliff Value Enhancement
Conducted complete strategic planning to identify the company’s limitations and opportunities
Targeted M&A outreach, driving a transformative acquisition
Formalized the company’s technology strategy
Added the first-ever sales team, which immediately brought in new customers
Graycliff operating partners provided strategic guidance to founders
“From both a strategic planning and financial structure standpoint, they’ve given us the tools to really accelerate our growth. Just in the last year we’ve almost doubled in size.”