Successful Integration with $5M+ EBITDA of Synergies Through Detailed Project Plan, Integration Roadmap, and PMI Oversight

Leading distributor of plumbing products acquired by an appliance repair parts distribution company.

The Challenge

TriVista was retained to provide acquisition integration support relating to the acquisition of a distributor of plumbing products. Client is a leading distributor of OEM branded residential appliance repair parts.

Our Approach

We performed functional assessments via site visits, detailed interviews with key staff members, and in-depth data analysis. Through this process and analysis of data provided by the company, we performed the following:

• Conducted multiple site visits with key staff members and the management teams
• Developed detailed plans to close one facility
• Led post-merger integration program including the IT integration
  • Defined integration strategy, team structure, and kickoff program
  • Developed end-state operating model for the combined company
  • Developed integration roadmap and detailed project plans including IT
  • Launched IMO and facilitate/monitor project execution including synergy tracking
• Organized and facilitated weekly workstream meetings including Network Optimization, IT, Finance, Operations, Sales, Marketing, and HR
• Developed a detailed project plan with over 1,500 items to track progress of all workstreams
• Performed weekly All Hands updates with all stakeholders to discuss progress in each workstream and update team on project roadmap and milestones

The Results

Our integration assessment identified EBITDA savings opportunity of $5M+ through outsourcing one operation, reduction in temporary labor, consolidation of duplicative IT vendors, and duplicative positions across the two companies. We developed the following:

• Current state and future state process maps for all processes in each department to identify similarities and gaps within people, processes, and systems
• IT project plan and implementation timeline for project roll out and go live
• Selection process and implementation of new HRIS system
• Process maps for AR, AP, inventory tracking, transfers, drop ships, credits, and financial close
• Plan for purchasing finished goods and raw materials both domestic and international from the target’s customer management system to the client’s system
• Completed inventory analysis to determine ideal dispersion of parts across the new network
• New commission structure and new pricing strategy
• Customer communication plan to send to all customers
• Future state systems needed for end state operating model