Operational due diligence: $25M profit add for valve distributor
- Location
- Texas, USA
- Year
- 2022
- Engagement
- Purchase Price: Supply Chain Due Diligence
Private Equity client had offered to purchase company and was seeking due diligence. Distributor had national reach through acquisitions of 8+ subsidiaries over 5 years, but subsidiaries not integrated.
Our team analyzed procurement spend volumes & prices, and compared to material indices. We assessed proximity to key customers relative to service level agreements to revise distribution centers. We mapped distribution channels across all subsidiaries to optimize freight routes, shipping methods and cost.
Measurable impact
$25M
USD $20-30m annualized savings
Industrial Components and Heavy Equipment
Case snapshot
Client proceeded with the company purchase and initiated implementation and value capture
Industrial Components and Heavy Equipment
Case snapshot
Implementation activities are underway to realize the projected financial benefits
Industrial Components and Heavy Equipment