case study Business due diligence and turnaround

Challenge

Our client targeted a company in Scandinavia with annual sales of > €45m for acquisition. A quick turnaround plan was needed for the transaction to generate value to the client.

What Strategy Labs did

Our team performed a two stage (pre- and post-acquisition) strategic due diligence of the target. We reviewed the cost structure and product portfolio fit with group’s strategy.

Impact

  • The client was able to take informed business and personnel decisions immediately after the transaction.
  • Annual cost savings equal to €2.0m were identified. The existing network of offices was benchmarked with 5 potential closures suggested.
  • Cash flow optimization measures worth €1.8m were suggested, with initiatives yielding €0.7m implemented immediately after the acquisition.
  • Potential lay-offs were planned, with 10% reduction in the number of FTEs achieved during the first quarter after the acquisition.
  • One business unit was identified as a possible spin-off.

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  • €2m ANNUAL COST SAVINGS IDENTIFIED
  • €0.7m IMPLEMENTED IMMEDIATELY AFTER THE ACQUISITION