TriVista Provides Quality of Operations™ Due Diligence Support to Private Equity Firm Acquiring $300M Automotive Aftermarket Distribution Company

The Challenge

A private equity firm retained TriVista to conduct a compressive Quality of Operations™ due diligence analysis on a $300M publicly traded automotive aftermarket distribution company.

Our Approach

•  Reviewed the company’s largest distribution center for operations improvements
•  Interviewed senior management and supply chain leaders
•  Conducted a DC capacity review to understand future requirements
•  Analyzed sales, inventory and current order planning process for working capital adjustments
•  Evaluated their sourcing process and supply chain practices for cost and process improvements
•  Assessed the company’s distribution network and logistics – new and existing DCs

The Results

TriVista identified over $6M in EBITDA improvements (~50% increase) through Lean initiatives, optimizing its distribution footprint, implementing formal sourcing strategies, and optimizing labor productivity in the key operations. In addition, TriVista identify ~$3M in cash flow improvements by implementing a statistically driven safety stock models to better manage inventory, and over $5M of aged inventory that could be sold at a discount to free up additional working capital.