Restructuring Advisors

Food Services Manufacturing

Industry: Manufacturing – Food Services
Size: $200 million
Region: U.S. Midwest, Brazil, Germany
Expertise: Post M&A Optimization – Operational Restructuring

The Challenge

Jim Burritt, founder of Restructuring Advisors was engaged by the acquiring organization to review, analyze, and make recommendations on existing management capabilities, current strategic initiatives, operational and financial improvement opportunities, and growth potential to ensure a successful implementation of their recent acquisition.

Our Actions

A complete review of business processes at each location was completed over a period of approximately 60 days. Burritt and his team utilized a proven plan that quickly allowed them to listen, learn, plan, implement and adapt. The first step was to conduct due diligence on all operations within the company to determine which segments were long-term strategic opportunities. Every facility and department was reviewed to determine profitability and effectiveness. Assessments took place to determine which processes worked successfully and where bottlenecks occurred. Analysis was conducted to determine how product line profitability could be enhanced and where operational efficiencies could be realized. As the elements of the due diligence process were finalized, an assessment that provided a plan and implementation schedule for the future operating structure of the business was completed. The assessment provided to the parent company included a statement of current findings and market projections regarding changes in the product lines, as well as recommendations on closings and expansions. Finally, a series of financial models were developed that supported the company’s vision to create more value.

The Results

During the initial 18 months, net income exceeded expectations by 7% while revenue was up 6% over the original pre-acquisition proforma. Operational improvements made within their manufacturing lines enabled the company to reduce product delivery schedules and improve overall customer satisfaction. Turnover during this same period was lower than prior year.