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Acquisition Due Diligence Highlights Cost Synergies

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The Situation

A $250 million annual revenue global defense manufacturing Company of mobile infrastructure, portable power generation equipment, and defense systems. $30 million debt.

  • The Company's business strategy is to expand internationally through acquisitions to meet the increasing need for mobile military defense systems globally.
  • The Company's management resources were limited and strained just to keep up with the growing demand for its existing products.
  • Limited management resources required assistance to evaluate, qualify, and quantify potential acquisition economic viability regarding operational synergies, business viability, operational performance, effectiveness, efficiencies, and cost savings synergistic opportunities.

How We Advised

We were retained to perform an operational assessment, validate the target company's historic performance and business plan, and identify operational synergies to reduce costs.

  • Performed an operations assessment which identified synergistic opportunities; cost reduction opportunities in manufacturing,
    distribution, inventory control, logistics, and order fulfillment areas.
  • Provided re-vamped organization alignment and structure to implement the synergistic re-engineering changes, inventory reductions, and right-sizing opportunities designed to perpetuate efficiencies going forward.
  • Our team concluded that the target acquisition company had a sustainable core business, a supportable business plan, and a core value proposition that is sustainable.
  • Synergistic cost reduction and efficiency improvements exceeding several million dollars annually were achievable via the acquisition by realignment of the company’s management control structure and consolidating facilities, which positioned this Defense Contractor to increase market share and improve profitability.
  • The Defense Contractor will realize several million-dollar annual profit improvement via synergistic right-sizing initiatives in manufacturing, distribution, logistics, inventory control, and administrative support functions.

Key Contact

Dan F. Dooley, CTP
Senior Managing Director
Strategic Advisory Practice
+1 603 660 8952
[email protected]

Related Practice Areas

> Business / Operational Assessment
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