Post-Acquisition Integration & Reducing Operational Complexity
| CLIENT PROFILE |
| INDUSTRY Industrial/Commercial Maintenance Products |
| SIZE $200 division of a $2.5B diversified manufacturing company, public |
| GEOGRAPHIC MIX North America |
| MARKET POSITION #2 |
| UNIQUE LINES OF REVENUE Multiple |
| CHANNELS TO MARKET Direct Sales, Value-Add Distributors, Online |
| 3-YEAR CAGR AT ENGAGEMENT 3-4% |
| BACKGROUND |
| As a result of an industry roll-up, the client had accumulated four brands with overlapping products, channels, and customers, resulting in an overly complex and expensive operating model that confused go-to-market partners and customers. CE2 assessed opportunities to reduce complexity and working capital requirements through new brand positions, product mixes, channel structures and pricing strategies. |
| OBJECTIVE |
| Establish a commercial multibrand strategy that streamlines the business on multiple fronts, including internal and external operating complexities, and captures unrealized economic potential identified in the investment thesis |
| PROJECT DRIVERS |
| Strategic Objective: Create brand positions that make sense to the marketplace, increase competitive power, achieve a broader addressable market |
| Economic Objective: Create new price leverage and reduce working capital |
| Operational Objective: Reduce operating complexity |
| DELIVERED |
| Conducted internal and external discovery |
| Working with client’s operations teams, developed projections for working-capital reductions and perspectives on operational impacts from various hypotheses |
| Recommended a strategy for fewer brands positioned on product and channel features |
| Recommended a new product mix and price strategy by brand, delivering net realized price increases assumed in the investment thesis |
| Defined a larger addressable market |
| Conceived and supported implementation plans, internally and externally |