TriVista Identified Risk and Value Creation Opportunities in a Cross-Border Deal

The Challenge

A $700 Million Private Equity fund was interested in acquiring a $100 Million industrial components manufacturer with a presence in the U.S. and China.  Given their limited experience in cross-border deals, the firm retained TriVista to conduct a detailed Operational Due Diligence in both countries.

The Approach

TriVista mobilized project teams in China and North America to simultaneously assess operational capabilities and weaknesses throughout the organization. TriVista worked directly with the target acquisition, adhering to strict requirements of confidentiality and investigative rapport surrounding the sensitivity of the transaction. TriVista’s due diligence included the following key areas of operations through data room analysis, personal interviews, and onsite observation / fact checking:

• Operational Leadership & Management Skillsets
• Engineering & New Product Development
• S&OP & Inventory Management
• Sourcing & Supply Chain Management
• Continuous Improvement Programs

The Results

• Identified EBITDA expansion opportunities of $2.5M
• Identified working capital improvement opportunities of $7.5M
• Retained by client to implement post-close improvement activities