Bolt-On Acquisition and Consolidation Synergy Delivers $26.8M of EBITDA Savings - TriVista
Case Study

Bolt-On Acquisition and Consolidation Synergy Delivers $26.8M of EBITDA Savings

Services Provided
Operations Due Diligence, Post-Merger Integration
Industries Served
Automotive and Recreation, Industrial / Manufacturing

The Challenge

A $1B private equity owned automotive aftermarket re-manufacturer was seeking to acquire a $140M bolt-on.  The private equity firm retained TriVista to perform a pre-LOI Quality of Operations® Due Diligence:

  • Conducted a high-level overview of Sales Inventory Operations Planning (SIOP), sourcing and procurement, manufacturing operations, and quality systems
  • Created a preliminary synergy analysis and developed a high-level footprint and operations consolidation plan
  • Conducted financial assessment, estimated capital investments, one-time restructuring costs and savings
  • Established project deliverables and timing
  • Two business units were included in the deal, and analysis was completed for each unit

Our Approach

  • Performed functional assessments at five facilities to analyze capacity
  • Conducted detailed interviews with key staff members to assess leadership effectiveness
  • Performed in-depth data analysis
  • Reviewed the SIOP, sourcing and procurement processes
  • Conducted a detailed current and future state inventory model with excess inventory burn off analysis
  • Executed operational benchmark of target sites against a database of 85+ similar manufacturers
  • Developed detailed cost savings/benefits analysis and reviewed with company management to validate and gain buy-in
  • Developed high-level consolidation timeline

The Results

  • Identified EBITDA savings of $26.8M
  • Developed high-level consolidation plans for the two business units. The first consolidation plan identified $19.5M of EBITDA synergies with a total consolidation expense of $14.7M. The second consolidation plan identified an additional $7.3M of EBITDA synergies with an expense of $3.8M

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