Acquisition Due Diligence Highlights Cost Synergies
Hunter Manufacturing (HDT), Solon Ohio
$250 million annual revenue global defense manufacturing Company of mobile infrastructure and portable power generation equipment and defense systems. $30 million debt.
- Company business strategy to expand internationally through acquisitions to meet the increasing need of mobile military defense
- Company management resources were limited and strained just to keep up with the growing demand for their existing products.
- Limited management resources required assistance to evaluate, qualify and quantify potential acquisition economic viability regarding operational synergies, business viability, operational performance and effectiveness and efficiencies and cost savings synergistic
- MorrisAnderson retained to perform operational assessment, validate target company historic performance and the company’s business
plan and identify operational synergies to reduce costs.
- Performed an operations assessment which identified synergistic opportunities; cost reduction opportunities in manufacturing,
distribution, inventory control, logistics and order fulfillment areas.
- Provided re-vamped organization alignment and structure to implement the synergistic re-engineering changes, inventory reductions
and right sizing opportunities designed to perpetuate efficiencies going forward.
- MorrisAnderson concluded that the target acquisition company had a sustainable core business, supportable business plan and a core value proposition that is sustainable.
- Synergistic cost reduction and efficiency improvements exceeding several million dollars annually were achievable via the acquisition by re-alignment of the company’s management control structure and consolidating facilities which positioned this Defense Contractor to increase market share and improve profitability.
- The Defense Contractor will realize several million dollar annual profit improvement via synergistic right-sizing initiatives in manufacturing, distribution, logistics, inventory control and administrative support functions.