Mergers & Acquisitions: Turning Around a Poorly Executed Merger
Challenge
A middle-market manufacturer struggled to assimilate two recently acquired businesses and faced a financial crisis. We had to develop a viable business model that captured the leverage opportunities of the original synergies and a business plan to raise capital.
What We Did
Returned to the basics, people and process, and leveraged it into bottom line results:
- Worked with a cross-functional team to identify the greatest leverage points to improve performance and then prioritized and developed action plans to address
- Prioritized a return to operational fundamentals and tracked progress with a metrics dashboard
- Established a new culture which assimilated the best of the merged cultures
Result
- Led turnaround effort that took the company from near bankruptcy and declining sales to stability, followed by rapid sales growth (30%) with significant EBITDA growth projected
- Built a business plan that successfully gained investors
- Launched a new product line with minimal capital investment to re-emerge with a position of strength with the customer base
- Led the operational and supply chain turnaround, which resulted in more than double the inventory turns, improved operational efficiencies and service levels with reduced lead times