DERIVING OPERATIONS VALUE FROM M&A
SUCCESSFUL INTEGRATION
Unleash the strategic value of the supply chain, manufacturing and logistics at your acquired company through proven integration processes. Explore opportunities to share knowledge and derive cost savings from partnering with existing factories or portfolio companies.
OPERATIONS DUE DILIGENCE
Assess the supply chain and manufacturing strengths and opportunities for improvement at your acquisition target. Understand their potential impact on post-acquisition costs and efforts to achieve KPIs. Which leads to...
Company Challenge:
This PE-owned multi-site manufacturing firm was pursuing the acquisition of a related manufacturing site. Previous acquisitions had presented some surprises in terms of site capabilities, technology, and knowledge. The company wanted a better understanding of what it might be acquiring.
Lustig Global Consulting's Solution:
Taking a customer perspective similar to a supplier audit, I assessed the information provided by the acquisition target to understand both manufacturing capabilities and supply chain opportunities. During an onsite visit, I was able to determine process levels and controls, manufacturing sophistication, and material flows. Based on this, I identified current state and effort (time and capital) required to transform this site into one that would meet the acquiring company's expectations.
Company Benefits:
The acquiring company went through with the acquisition, with the knowledge of both opportunities (such as potential supply chain savings) and challenges (effort required to meet company standards). This allowed the development of an effective integration plan with a budget and timeline.
CASE STUDY IN EFFECTIVE INTEGRATION
Company Challenge:
The electronics manufacturing company was challenged by its first two integrations and was acquiring other companies, which meant it needed better integration management and processes in order to achieve the financial, strategic, and operational goals for the acquisition.
Lustig Global Consulting's Solution:
Based on past work on both sides of an acquisition (at acquiring and acquired firms) and my project management experience, I proposed a structured process for integration. This included initiating a cross-functional integration checklist sorted by functional department and timeframe relative to acquisition date. I met regularly with those actively involved in the integration at both headquarters and acquired site, and with their leaders. I spearheaded supply chain aspects of the integration to model execution of the integration process.
Company Benefits:
We proceeded through the supply chain integration items and completed most on time. Cost savings were achieved, supply chain terms were transferred to the new site, and the supply chain leader was happy with the support and orientation, leading to a successful integration. The company now had a process and checklist that they could use for future integrations, which they did!