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

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