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Due Diligence Engagement
Client — Financial Buyer of $75 million Automotive Supplier
Improvement Opportunity
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Seller seeking liquidity
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Forecast earnings highly attractive, but suspect
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Business appeared to be selling at the peak of business cycle
Approach
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Performed assessment of three plants and prepared report
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Identified in excess of $7 million in annual savings resulting from
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improvement in throughput, efficiencies, and consolidation to one plant
Results
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Assisted buyer in post-acquisition activities, including developing an implementation plan to execute on identified savings
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In addition, negotiated one-time, $1 million retroactive price adjustment related to uncompensated engineering changes with primary customer
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