For a PE owned A&D specialty machining company, Quantum conducted ODD of a rapidly growing A&D composites structures and interiors manufacturer.  Quantum conducted an assessment of the target’s US manufacturing plant.  Quantum assessed the scalability of the facility, operations, processes and headcount. and identified opportunities for stand alone EBITDA improvements. Quantum reviewed the facility layout, process flow, operating KPIs, headcount skills and training, equipment utilization and CapEx requirements to achieve the projected growth

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.

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.

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

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.

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.

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.

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.