The due diligence uncovered millions of dollars in supply chain synergies and opportunities to quickly improve operating costs. This gave the buyer the confidence to proceed with the acquisition. However, they needed to realize the expected synergies within weeks, not months or years.
Maine Pointe entered the company with an accelerated plan for time-to-value creation in procurement and logistics. Our focus was on minimizing some of the risks commonly associated with realizing synergies post M&A and to quickly find new areas of savings that had not been identified due to the limited information provided during due diligence. At the same time, the parent company wanted to maintain the stand-alone nature of the acquired business but have back-office homogeny. To achieve this accelerated goal we drew on our relationships and subject-matter expertise within the global industry and our first-hand knowledge of the parent company’s business model. More specifically, Maine Pointe:
As a result, we were able to deliver the first 20% EBITDA savings (raw materials) within 4 weeks and 50% annualized savings improvement within four months.
Working closely with the parent company team during due diligence and post-acquisition, Maine Pointe helped quickly identify and realize untapped synergies, resulting in: