Quantum Strategic Advisors | Newton, MA

INDUSTRIALS

We have completed 50+ engagements and advised on $12B+ of deal value and $225M+ of EBITDA improvements.

Aerospace Composites Carve Out ODD

For a PE Platform acquisition, Quantum conducted an ODD of an aerospace and defense composites products business with multiple manufacturing plants in North America, being carved out from a Parent.  Quantum conducted site visits to all the manufacturing plants and assessed manufacturing, supply chain, procurement, and other operating capabilities at each of the manufacturing plants.  Quantum assessed capacity  utilization, rework costs, productivity impacts,  Lean maturity and initiatives, etc.  Quantum developed potential EBITDA improvements that  included footprint consolidations, product moves and operating efficiencies.  Quantum also estimated inventory reduction potential.

A&D Manufacturing Relocation Plan Review

For a PE add on acquisition in Aerospace & Defense manufacturing, Quantum completed a relocation review.  The target had plans to relocate its manufacturing location to a new site.  Quantum’s role was to assess the feasibility and risks in the relocation related to customer qualifications, equipment move planning for CNC machines, inventory and production planning, impact on customer lead times and other operational issues.  Quantum developed recommendations and a detailed one time cost schedule for the relocation.

Industrial Maquila Add-On ODD and Synergy Assessment

For a PE industrial/A&D manufacturing portfolio company with multiple plants in the USA, Quantum conducted operational diligence and synergy assessment of an add-on acquisitions with plants in AZ and Mexico (maquiladora).  Quantum mapped processes, conducted operational analysis and assessed the maturity and efficiency of the target’s manufacturing, procurement and supply chain operations.  Quantum also assessed the available capacity at Mexico to receive additional products from the buyer’s US plants.  Quantum profiled the buyer’s products to identify specific candidates for moving production to Mexico,  and quantified the synergies from moving.  For 1 specific growth product where the buyer was facing pricing pressures, we quantified the potential price reduction possible by moving production to Mexico.

Industrial Add on ODD and Synergy Assessment

For a PE portfolio company that manufactures and distributes industrial products, Quantum conducted Operational Due Diligence and synergy modeling for a large add-on acquisition.  Synergies included consolidation of manufacturing plants, 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, detailed one time costs estimates and an integration plan

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

Glass Fabrication Plant – Operations Turnaround

For a North American glass fabricator, Quantum led an operational turnaround program at  one of its highly automated manufacturing plants. Quantum conducted a quick assessment of the operating issues affecting plant performance.  Quantum worked closely with the plant team to develop  a comprehensive program that addressed all of the operating processes from purchasing to customer service.  Quantum led multiple Kaizen events and Root Cause Analysis exercises to identify changes to operating practices, processes and KPIs.  Quantum coached the plant team through the implementation, and helped to achieve significant improvements in On Time In Full (OTIF %), reduction in scrap, increase in throughput, setting the plant on the path to improved profitability.

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

Industrial distributor – Operational Assessment

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

Industrial Distributor-Operational Assessment and Implementation

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.

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 acquisition and plant move

For a $3B diversified aerospace manufacturer, conducted operational due diligence and detailed pre-close planning for the acquisition and integration of a North American aerospace manufacturer with 2 plant locations. The Quantum team assessed synergies in manufacturing, organization and G&A. Developed a detailed plan to move production to the buyer’s manufacturing locations and transition to an integrated organization. Quantum has been retained to lead the integration

Electronics Manufacturing Plant – Buy and Move

For an aerospace and defense semi-conductor manufacturer, conducted diligence and detailed pre-close planning for the acquisition and integration of a carve out of the micro-electronics division from a parent company. Developed detailed work plan and one time costs for moving the manufacturing plant and headquarters to a new location, and estimated EBITDA impact.

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.

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.

Trans-Border Acquisition and Plant Move

Operational Due Diligence, pre-close panning and post-close program management for acquiring and integrating a $50M Mexican specialty manufacturer and moving production to the buyer’s plant in USA.

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.