May 2020
Teaching Note
HBS Case Collection

Chem-Ecol

By: Richard S. Ruback, Royce Yudkoff and Ahron Rosenfeld

Format:Print
| Language:English
| Pages:8

Abstract

Dahra Allen acquired Chem-Ecol, a machine oil recycling business, for C$13.3 million in December of 2012. Allen decided to hire a sales director and the case discussion largely focuses on selecting the sales director from her short-list of five candidates. During the due diligence process, Allen discovered that the company had underutilized purification capacity that could be used with few additional costs. To take advantage of this opportunity, Chem-Ecol would need to substantially increase sales. Allen had tried to increase sales during her first year of ownership by doubling the number of sales people from four to eight, and basing their compensation solely on commissions, but sales did not increase substantially. She wanted to hire a sales director who would have the skills and experience to build the sales team and increase revenue.