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.
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
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
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