For a PE portfolio company that manufactures and distributes pipe fittings and connections, Quantum conducted an Operational Due Diligence and synergy modeling for the potential acquisition of a competitor. Synergies included consolidation of manufacturing plants, foundries, channels and distribution centers, SKU rationalization and organizational integration. Quantum modeled the existing capacity by each process at the receiving plants and modeled how the costs would change with incremental volume from the target plants. Quantum also modeled new inventory levels and additional space and costs required in DCs. Based on this Quantum developed synergy estimates, one time costs estimates and an integration plan
For a recently acquired hardware distributor with 0ver 75K SKUs, Quantum conducted a detailed post-close operations assessment. Recommendations included consolidating DC network from 16 to 8 locations, changes to inventory policies, classification and stocking levels, e-commerce fulfillment policies, sourcing & rebates, DC operating procedures, etc. Management has fully accepted the recommendations and is implementing in an expedited timeline
For a recently acquired fast-growing industrial parts designer/distributor with 20K SKUs, significant Asia sourcing, Quantum conducted a detailed post-close operations assessment. Quantum identified transformative changes in business model, processes and systems, to enable the business to scale to 2X in a few years. The changes include service level definitions, sales processes, SOIP and inventory levels, operations scheduling, assembly capacity enhancements, WMS and SCM software, network structure changes, etc. Subsequently Quantum led a 7-month implementation program to assist the Management team through these changes.
For a PE client, Quantum conducted a rapid Phase 1 assessment of a mid-market automotive after-market parts manufacturer. Quantum conducted site visits, data analysis and management discussions to assess the maturity and scalability of operating practices, network capacity and operating costs.
For a $500M medical products manufacturer and distributor, conducted diligence on the acquisition of a $200M device manufacturer and supplier. Identified the operational impact of the vertical integration strategy and quantified synergies in manufacturing, sourcing, supply chain and G&A.
For a PE owned $12B food services distributor implemented a multi-year operational improvements program to improve EBITDA by $60M through standardizing operating practices in DCs, route optimization, increased backhauls and other operational improvements.
Operational Due Diligence of a $450M Medical distributor being carved out from a parent company. Identified $8M EBITDA improvement through Sourcing, Private label and supply chain efficiencies.