Quantum Strategic Advisors | Newton, MA | 617-916-1826

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OPERATIONAL DUE DILIGENCE

We have completed over 40 engagements, advised on $10B+ of deal value and $240M+ of EBITDA improvements

UK Industrial Add On ODD and Integration Planning

For a US based truck accessories manufacturer / market leader with a UK footprint, Quantum conducted ODD, synergy assessment and integration planning for the acquisition of a UK based competitor truck accessories company. Quantum conducted site visits to the buyer and target’s UK manufacturing and parts distribution locations.  Quantum’s synergy assessment focused on identifying and quantifying the synergies in procurement, organization, after market distribution operations, footprint and other areas.  Quantum also assessed the opportunity to implement production automation at 2 of the UK manufacturing locations, based on the US plant’s operating model. Quantum developed an integrated organizational model and a detailed integration plan and change management plan for the 2 companies to cover all the identified opportunities, and also to de-risk the transitioning out of the founder/managers at the target.

Aerospace machined components – Platform ODD

For a PE company’s new platform investment in a manufacturer of highly engineered machined components for thermal management of electronics, Quantum conducted Operational Due Diligence and estimated EBITDA improvements and CapEx requirements over investment horizon. Quantum conducted site visits to 2 manufacturing locations, conducted a maturity assessment of processes, manufacturing efficiencies/ Lean, order fulfillment, equipment utilization, supply chain and procurement, labor management, safety and other key processes. Quantum developed recommendations for operational improvements and estimated the EBITDA improvements from the recommendations.  Quantum also assessed the sufficiency of CapEx plans and recommended adjustments for investment considerations

ODD of an Aerospace Microelectronics Company

For a PE Platform investment, Quantum conducted ODD of an engineering-driven mid-market manufacturer of Software Defined Radios and RF Sensing technologies for aerospace, defense and commercial markets.  Quantum assessed the engineering, product development, supplier management, manufacturing, knowledge management, HR and other processes to identify improvement potential, develop risk mitigation and assess scalability.  Quantum estimated the EBITDA improvement potential and investments required for growth and scaling.

Microelectronics – 2 Add on Assessments

For a PE owned microelectronics company, Quantum completed back to back 2 add on assessments, involving 3 manufacturing locations.  The target companies products included highly engineered substrates, dies and packages and hi-reliability products for aerospace, defense, medical and other sectors. In each of these ODDs, Quantum assessed the maturity of processes, opportunities for EBITDA improvements, potential risks and synergies with the  buyer.   Areas assessed included manufacturing efficiencies, quality/yield, productivity, cost management, constrained supply chain and vendor management, equipment maintenance/CapEx, continuous improvement, etc.

Semi Conductor Add On Assessment

For a PE owned semi-conductor processing company, Quantum completed an assessment of a potential add on acquisition of a competitor with 3 manufacturing plants.   Quantum conducted a detailed assessment of each of the processing plants, and developed an integration framework and EBITDA savings estimates from integrating the operations of the 2 companies.

ODD of an electrical components manufacturer

For a PE client considering a platform investment in an electrical component manufacturer with 2 manufacturing locations and a complex global supply chain, Quantum conducted an Operations Due Diligence and supply chain risk assessment.  The site visits were conducted observing strict Covid-19 protocols.  Quantum developed an assessment of manufacturing and operating processes, ability to support growth and risks in the supply chain.

Add on assessment for a fiber optic company

For a PE owned fiber and cable connectivity manufacturing company operating in aerospace and defense verticals, Quantum conducted an operational synergy assessment of an add on acquisition in an adjacent space.  Quantum assessed the operating processes at the target’s manufacturing plant, identified opportunities for EBITDA improvements and developed a post-close operating agenda for the target.

ODD – Industrial Add On Acquisition

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

ODD – Global Semiconductor Components Company

For a PE portfolio company in aerospace micro electronics considering an add-on acquisition of a significantly larger, high reliability global semi conductor components supplier, Quantum conducted ODD and operational synergy assessment.  The Quantum team visited 8 plants in the US and UK to conduct overall operations assessment.  The team developed integration strategy for manufacturing plants that included closing 2 of the target’s locations and moving production over to the acquirer’s plants.  Quantum developed the synergies and one time costs in operational and organizational integration.  Quantum was retained to lead the post-close implementation

Add-on Synergy Assessment for A&D Components Manufacturer

For a PE portfolio company in aerospace & defense, evaluating an add-on acquisition of a components manufacturer and repair service provider, Quantum conducted operational diligence and add-on synergy assessment. Quantum worked closely with the client’s team to identify and assess specific synergy opportunities in manufacturing including production consolidation, sourcing, organization and SG&A. Quantum developed the synergy estimates, one time costs and an integration implementation plan.

ODD automotive after-market parts manufacturer

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.

ODD and Carve out planning for a global machinery and parts manufacturer

For a PE client, Quantum conducted a detailed carve out operational assessment of a global blow molding machinery manufacturing and after market parts distribution operations. Specifically the assessment focused on relocating assembly and parts distribution from the parent company to one of the carved out sites. Quantum conducted a detailed review of the assembly operations and supply chain, assessed the feasibility and risks in the carve out, developed the operating costs for the NewCo, developed site lay outs for the new assembly and distribution operations, an implementation plan and estimates for one-time costs. Quantum’s expertise in manufacturing and distribution was recognized by the PE clients and the NewCo Management team.

Aerospace electronics components ODD

For a PE client focused on aerospace investments, Quantum Strategic Advisors conducted an ODD of a leading high reliability electronics components manufacturer with 5 manufacturing sites in the US. Quantum assessed the potential for EBITDA improvements through operational initiatives including – footprint rationalization, product consolidation, sourcing, productivity improvements and pricing. Quantum also outlined platform investments to support continued acquisitive growth.

Aerospace electronics roll up

For a middle market PE firm, Quantum conducted operational assessments of 3 highly specialized aerospace electronics companies. For each target, Quantum assessed the stand alone improvement opportunities in manufacturing, supply chain, organization and G&A. We also assessed potential synergies in a roll up scenario integrating with other targets under consideration.

Global chemicals merger

For a $750M global chemicals company (metal working fluids, lubricants, coatings) led a global diligence for the acquisition of a similar sized global competitor. The Quantum team acted as a trusted adviser to the buyer’s Executive team, managed other diligence providers, and guided the effort in assessment of opportunities and risks in global manufacturing, sourcing, organization, SG&A and commercial integration.

Global specialty chemicals acquisition

For a $700M global chemicals company, led the diligence for the acquisition of a $350M global specialty chemicals manufacturer (coatings and colorants). The Quantum team worked closely with the bidder’s management team to assess synergies in manufacturing, sourcing, supply chain and G&A. Conducted global site visits, developed footprint rationalization scenarios, developed integrated organization structure, assessed combined sourcing synergies and potential SG&A reductions

Medical Products Merger

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.

Specialty Retail Diligence

Operational Due Diligence on a $8B specialty retail take private transaction for 2 very large PE firms jointly bidding on the deal. ODD identified $200+M in EBITDA improvements through sourcing and merchandising initiatives, and efficiencies in store operations, supply chain, e-commerce and G&A.

Oil Services – Clean Room Diligence

For 2 oil services companies who were direct competitors evaluating a merger, we conducted a clean room diligence to confidentially assess synergy potential in global operations. Maintained strict confidentiality of both parties’ data, worked interactively with both companies to evaluate synergies in asset utilization, organization rationalization, facilities and sourcing.

Specialty Manufacturing Diligence

Operational Due Diligence of a $2B specialty paper and plastics products manufacturer that had grown quickly through acquisitions and had 30+ plants. Assessed opportunities in manufacturing footprint consolidation, Lean improvements, indirect sourcing and supply chain. Critically evaluated seller’s claims on footprint and manufacturing initiatives, which helped the PE firm to calibrate their interests in the target.

Branded CPG Carve Out

For a $1B branded retail cosmetic manufacturer being carved out from a large parent, assessed the operational impacts as a standalone. Estimated the impact of loss of leverage in sourcing and distribution, offset by reductions in corporate overheads, and operational improvements.

Global Carve out of a Chemical Company

Operational Due Diligence on the global carve out of a $1B specialty coatings manufacturer. Identified $60M in EBITDA improvements from manufacturing efficiencies, footprint consolidation, strategic sourcing and G&A reduction.

Food Manufacturer Commercial Diligence

Commercial and operational due diligence of a $200M contract food manufacturer serving military and commercial channels. Assessed and validated growth projections in new product introductions with branded food manufacturer programs. Assessed improvement potential in manufacturing operations. Developed revenue and EBITDA forecasts.

Gas Distributor Diligence

Exclusive Operational Due Diligence on a $200M high growth CO2 distributor. Identified $10M EBITDA improvement potential through field operations improvements, sales force effectiveness and sourcing.

Medical Distributor Carve Out

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.

Software Acquisition

For a large transportation equipment manufacturer looking to build technology capabilities, conducted commercial and operational due diligence on the acquisition of a rail and logistics software company. Validated market potential and growth assumptions.

Aerospace JV and Technology Transfer

For a Middle Eastern Sovereign Wealth Fund interested in developing aerospace manufacturing capabilities in the country, provided consulting support to sign a Joint Venture agreement with aerospace OEMs to set up a composite manufacturing plant in the country. Modeled the economics of the greenfield operation and technology transfer and provided significant input to the JV set up.

Parcel company valuation / strategic options

Assisted the government of Canada to evaluate strategic options for a large parcel carrier owned by Canada Post. Developed detailed financial models for commercial and operational synergies for various strategic options including IPO, sale to financial buyers, strategic buyers, etc. Advised on value to stakeholders and recommended actions.

3PL acquisition by platform company – Commercial diligence

For a PE owned global 3PL evaluating the acquisition of niche European forwarder, conducted commercial and strategic assessment of the acquisition and fit with the parent company. Assessed market positioning and operational synergies from the merger