• Case study
  • Carry out the competitiveness audit of the future participation of an investment fund in Due Diligence phase

Carry out the competitiveness audit of the future participation of an investment fund in Due Diligence phase

The client

A foreign investment fund based in Northern Europe, in the middle of a due diligence process.

Our client is planning to acquire a new heating, ventilation and water heating company and is currently in the middle of the due diligence process. He wishes to enrich his vision with an assessment of the direct cost reduction potential for the new product portfolio.

The cost reduction potential will have a strong influence on the acquisition process and the appreciation of the company's value.

IAC was mandated to conduct a project evaluation to assess the direct cost situation of the new company. Select 2 or 3 reference products, depending on the breakdown of turnover and the contribution margin, which will be analysed in detail for:

  • Make an initial assessment of quantified issues of cost reduction on product portfolios
  • Propose an approach to be deployed after the acquisition to achieve these objectives

Over a short period of 5 days, the existing room for maneuver is recorded on the main products:

Orient

  • Have a clear vision of the product ranges, their respective sales and contribution margins
  • Review Purchasing portfolio by commodity/technology
  • Understanding the Process Flow Manufacturing Chart by Product Family

Interview

  • Meet the Technical, Purchasing and Industrial teams
  • Understanding organizations, processes, tools and means
  • Review current projects and opportunities

Analyze

  • Analyse and define priority objectives
  • Technical audits of product portfolios and identification of the first areas for optimisation
  • Evaluation of Purchasing performance and initial optimization opportunities
  • Evaluation of the industrial tool and areas for improvement

-Accurate mapping of organizations, product lines and purchasing portfolios

-Realistic objectives of 10 to 15% cost reduction depending on the product portfolios were shared with the teams

-Objective of 5% additional evaluated and shared with the teams on the Purchasing portfolio

-Interview with the heads of the Technical, Purchasing, Production, Marketing and Sales functions and Management

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