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