Acquisition Planning

Smart and strategic growth

The consolidation currently underway in manufacturing and the growing pricing pressures by retailers and suppliers offer great opportunities for small to medium sized manufacturing companies.

We can help you:

• Identify target companies in your industry that contribute to the successful implementation of your company’s strategic plan
• Develop and implement appropriate financial structures for the target’s acquisition and integration into your company
• Plan and realize integration savings and revenue growth opportunities

The key to remaining profitable and building market-place leverage is relevance.  Your company must be relevant to its customers to ensure product availability and sell-through; to its suppliers to manage upward trending commodity prices; and to its industry to manage successful acquisition strategies.  We bring experience and savvy to this complicated planning and development process.

A $100mm Mexican, cross-border manufacturer in the industrial product sector needed a strategy that would allow continued improvement in operating and product margins. With management we evaluated what markets they needed to expand into (from a product and a geographic market side) to have more power with the retailer and have more control over their margins. The ultimate plan resulted in closing down one facility that continued to detract from margin growth, and acquiring three companies that broadened their product offerings and gave more shelf space at retailers. This plan provided targeted organic sales growth of 10%, brought purchasing leverage to bear resulting in a 12% first year savings, while maintaining operating margins at the customer level above previous 3 years’ numbers.