Quality of Operations™ Due Diligence Yields $1.1M of Post Integration EBITDA

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The Challenge

TriVista was engaged by a private equity firm to perform a Quality of Operations™ Due Diligence assessment on a packaging component manufacturer that was being considered for acquisition. The scope of the analysis included identifying potential acquisition synergies and developing integration strategies for the target company and the portfolio company, which operate in the same industry.

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Our Approach

We conducted the following activities to fully understand the target company business and operations:

• Onsite visits to target’s locations
• Assessed organizational structure and leadership team
• Performed analysis of Sales, Inventory, and Operations Planning (SIOP)
• Evaluated production, equipment, labor, and capacity
• Quantified post-close operational integration synergies including footprint, procurement, and manufacturing

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The Results

• Identified approximately $1.1M of post integration EBITDA expansion opportunities by eliminating one facility, reducing supervisory and other staff related overheads, improving labor efficiency through Lean Six Sigma, and reducing commodity cost
• Identified over $0.5M of cash improvements over two years through inventory optimization