Example case studies
We have included in this section a small number of indicative case studies describing the work we do.
Our clients are private equity houses, debt providers and corporate acquirers who, typically, are focused on mid-market investments.
Naturally such investors tend to prefer anonymity or to keep their investment activities confidential, therefore we do not provide client names here.
We have worked with multiple examples of each category of client and we are of course pleased to provide references at an appropriate stage of proceedings. Please contact us if you require additional or more detailed case studies.
Case study 1
The client: €65m turnover European industrial organisation
This company, with factories in 3 countries plus sales and distribution facilities in a further 8, had been acquired by a European private equity fund.
Key services and deliverables
DSI took the role of interim Operations Director with a brief to inject momentum into a program of changes with the objective of delivering €2.1 million annual EBITDA benefits within 6 months:
- Actual annualised benefits delivered €2.8 million
- Reduced working capital in inventory by €250k
- Delivered significant improvements in product delivery performance and lead time response from all 3 factories
- Identified and commissioned additional projects in Operations
- rapid product cost reduction - estimated €150k annual benefits
- core product re-design using QFD methods - estimated €500k annual benefits
- Initiated fulfilment centre rationalisation project for core European markets
Case study 2
The client - a US based equity fund
The European target, being sold by a US parent, was a $100m turnover, single digit EBITDA, federally organised industrial firm with factories in 3 countries plus sales and distribution in a further 8.
Key services and deliverables
'Red flag' assessment, during initial auction, including:
- Estimates of potential benefits from location rationalisation and changes to customer order fulfilment model
- Initial supporting financial model and rationalisation risk assessment
- Diligence and restructuring, during exclusivity, including:
- Full restructuring package for the international supply chain
- 100 day plan for transformation
- Detailed risk assessment
- Full 3-year financial model supporting restructuring and the private equity investment model
Case study 3
The client - a US based equity fund
The target, being bought from a US parent, was a $130m turnover producer of high-specification aerospace components located in 3 Southern European factories. The business was generating acceptable EBITDA but with poor OFCF performance and significant delivery problems.
Key services and deliverables
- Operational restructuring report, including:
- Assessment of the existing business improvement initiative
- Facilitation of local senior management team to develop a robust business improvement plan
- Risk assessment on the operational improvement plan
- Review and assessment of the plans for separation from the parent upon completion
Case study 4
The client: Privately owned industrial organisation
The US target was a $420m turnover privately owned industrial business with 15+ plants across the country, serving the aerospace, IGT and general industrial markets. The business was delivering EBITDA in excess of 15% and the acquirer had identified significant parts of the target with complementary fit.
Key services and deliverables
'Red flag' assessment of:
- Synergy, including fit with the acquirer's organisation structure, opportunity for rationalisation of the production footprint and materials purchasing upside
- Performance of the 9 plants visited; including extrapolation to divisional and group performance
- Senior management
- The vendor-provided financial model in support of the CFO
Case study 5
The client: Corporate leveraged finance division of a major UK bank
The UK-based private company acquirer engaged in the transportation of huge loads internationally was seeking finance, without relinquishing equity, to acquire its key under-performing and similarly-sized competitor from a large industrial group. The combined business now turns over circa €60m with impressive profitability.
Key services and deliverables
Phase 1 - High-level overview highlighting critical issues; including engineering and equipment utilisation capability, strategic rationale, synergies, market perspectives, cultures and organisations, IT, measures and existing integration plans
Phase 2 - Further investigatory and planning work; including full integration planning, 'Voice of the Customer' referencing, people retention and communications strategy, business valuation (supported by a partner firm)
Case study 6
The client: €3bn turnover segment of a major international engineering group
This profitable customer service division was chosen to be the engine of the group's M&A activity, in response to demanding strategic growth targets, and had appointed several 'brightest and best' managers to form an M&A team.
Key services and deliverables
- M&A process definition stage
- Review of existing M&A capability, identifying areas requiring attention
- Clarifying the M&A team's offering and engaging world area directors
- Sizing of the potential acquisition pool
- addressing the areas requiring pressing attention
- Initial team training and mentoring in targeting, due diligence and integration
- Development of a targeting process, including research
- Piloting the targeting process in the US and 5 European countries
Case study 7
The client: €450m turnover international aerospace components group
This division of a major industrial group had made a significant number of acquisitions in Europe and the US which required rationalisation and integration into the enlarging group.
Key services and deliverables
Phase 1 - 'Red flag' audit of existing manufacturing strategic plans; including highlighting shortcomings, reality check, gap analysis, risk assessment, cost benefit analysis, potential alternative scenarios
Phase 2 - Development of the plans in preparation for robust scrutiny; including manufacturing, organisational and change management input, business case development , provision of project evaluation DCF tools and financial scenario modelling, presentation materials
Phase 3 - Assessing and modelling the likely impact of specific strategy implementation projects; including financial analysis, liaising with group finance, advice on the impact of overhead recovery method changes