According to Deloitte, “Corporations and private equity firms pin the most blame on external factors, but recognize the need for more effective due diligence and integration to make sure revenue projections materialize.”
Challenge:
A logistics specialist was brought in by M&A Company to assist with a supplier to the Pest Control market.
- Pre-due Diligence phase
- Provided Outlook on the market
- Identified and outlined some bad practices and risks
Opportunity:
A logistics specialist was brought in by M&A Company to assist with a supplier to the Pest Control market.
- Identified risks in technology, product and service offering
- Identified some regulatory challenges
- Identified an ROI would not materialize until year 10
Solution:
The company was heavily reliant on its profitability, it’s production facility which produced its own branded product, as well as producing products for outside companies. During the process, it was identified that to continue the production of certain active ingredients HUGE investments would be required due to changing regulation in the next two years. In addition, some products would not be able to continue production due to new regulatory requirements. This investigative work flushed out that the seller knew the regulatory requirements were coming, did not have the money or appetite for the changes and was trying to go for a quick sale.
Partnered with RadiusPoint, A logistics specialist hands off the Accounts Payable tasks during the integration phase to ensure business continuity with all of the invoices that your newly purchased company brings to your organization. RadiusPoint can provide:
- Costs benchmarked and brought under control to stop the overspending
- Plans to move from some of the higher cost space to lower-cost space
- Restructuring of the logistics and eliminating redundant warehouse space
- Processes to better define procurement to cut costs
Having A logistics specialist and RadiusPoint on your Mergers and Acquisition team will save your team time, allow your acquisitions to move faster and transition move seamlessly.
Contact Us To Learn How A logistics specialist & RadiusPoint Can Help Your Organization Today!