CASE STUDY SS-FB-DD-04| Due Diligence

Private Equity Acquisition of a Dessert Manufacturer

Private Equity Acquisition; Using Business Intelligence for Operational Due Diligence in a Dessert Manufacturer

Food & Beverage | Due Diligence

25%

rojected Annual Growth Capacity (Near-Term)

2024

Operational Benchmark vs. Peer Food Manufacturers

Above Avg

Operational Benchmark vs. Peer Food Manufacturers

Challenge

Evaluating Site Health and Growth Potential Under Tight Timelines

Operational Efficiency: Conduct a rapid review of the Target’s facility through a Lean lens, highlighting operational risks and potential value creation. Inventory Strategy: Assess the current strategy and propose future improvements for economies of scale. Best Practices: Identify industry best practices to enhance performance and provide a summary report of findings.

Site Health Assessment: Evaluate the overall health of the manufacturing site, including strengths and areas for improvement. Future Capacity Planning: Examine current practices against industry standards, anticipate future growth, and analyze customer demand for informed decision-making.

Solution

Leveraging BI Tools and Industry Expertise for Clear Insights

On-Site Evaluation: Leveraged expertise in the food and CPG sectors to assess operations, infrastructure, and management quality for actionable insights. Business Intelligence: Used BI tools to analyze inventory turns, recommend optimal MTO/MTS strategies, and visualize product distribution for strategic pricing. Pandemic Impact Analysis: Examined COVID-19's damage to the business and projected recovery expectations, informing decision-making for future growth.

Customer Dynamics: Documented customer turnover trends and SKU rationalization to stabilize and enhance the business. Capacity and Expansion: Identified capacity constraints and potential for expansion while noting warehousing limitations for strategic planning.

Results

Insight into Transformative Potential

Efficiency Gains Identified: Assessment uncovered opportunities for 5X improvement in efficiency. Customer Retention Opportunities: Highlighted potential to reduce lost customers and improve market competitiveness.

Foundational Plan for Change: Although execution was outside the scope, the assessment provided a roadmap for immediate and long-term improvements. Enhanced Market Positioning: Identified strategies to reduce operational chaos and become more competitive in the medical device industry.

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