Transaction Support and Operational Value Creation Framework

Transaction Support and Operational Value Creation Framework

Operational Due Diligence, Pre-Close Planning, Integration Stabilization, Operational Excellence

Click on the tabs below for more details:

Define what the buyer can achieve and how
  • Operational best practices / Lean efficiencies
  • Footprint optimization
  • Supply chain and network cost reduction
  • Logistics cost reduction
  • Sourcing leverage
  • Inventory reduction
  • Indirect / MRO spend
  • Organization and G&A synergies
  • Sales Force effectiveness
  • SKU rationalization
  • Pricing
  • IT assessment and options

We combine a mix of top down financial analysis and bottom up operational and organizational assessment (within the time frame of a transaction), to quantify EBITDA improvement potential, one-time costs and risks. For carve outs we validate the stand alone / merged cost projections considering the synergies with strategic buyers.

For corporations considering an acquisition of a competitor, we have assisted direct competitors evaluate merger potential through a clean room approach that maintains confidentiality of sensitive information, while still being able to quantify the synergies in the deal for both parties to decide how to move forward with the process.

Case Examples
Plan for rapid control, and synergy capture
  • Integration Program definition
  • Workstreams, charters and teams
  • Detailed synergy capture / integration plan
  • Day 1 organization
  • Retention plans
  • IT program definition
  • Communication plan – internal & external
  • TSA requirements
  • Synergy capture timeline
  • One time cost budgets
  • Risk mitigation plan

Depending on the transaction process, the “sign to close” time is a critical phase to get the implementation done right. This is particularly true for carve outs and for “buy and merge” deals. Our teams get real detailed in planning the integration, not only to standup the new organization and processes, but also to pursue the synergies and EBITDA opportunities. In our experience, a detailed pre-close plan is critical for achieving greater synergies, quicker.

Case Examples
Deliver short term goals / benefits
  • PMO and Workstream leadership
  • Functional work plan execution
  • Carve out execution
  • Integration of target with platform company
    • Plant moves / consolidation
    • G&A integration
    • Supply chain set up / outsourcing
    • Etc.
  • Communications management

The speed at which you need to move depends on the type of transaction. For small roll ups or asset purchase transactions we can very quickly integrate. For a “merger of equals”, complex carve outs or other similar transactions, the integration and stabilization phase is very intricate and a lot of little things need to be done right. Our teams understand what it takes, and we provide active support that is rooted in the experience of managing other integrations.

Case Examples
Achieve the upside
  • EBITDA improvements through:
    • Operational best practices
    • Lean / Manufacturing excellence
    • Footprint consolidation
    • Supply chain optimization
    • Sourcing strategies
    • SKU rationalization
    • Pricing
    • Back office consolidation
    • Etc.

How can companies realize the stretch case of synergies and EBITDA improvements? It requires going beyond rationalization to achieving best is class. We understand what it takes to achieve excellence, and the EBITDA impacts. Our results based implementation approach ties the outcome of engagements to operational and financial KPIs that the CFO and COO can certify.
For PE companies in the last 3 years of their holding, we help implement EBITDA improvement programs that builds a platform for continued improvements and positions the company well for exit.

Case Examples