Operation Due Diligence

$60M Technology Manufacturing Company

Background

  • The target acquisition was a division of a manufacturer of 3D printers and printing materials
  • With 7 locations around the globe, the division provided on-demand additive and subtractive manufacturing services
  • This division was a target for carve-out after several years of declining revenues and the company’s objectives being focused on its core printer manufacturing business

Contributions

  • Determined the size and cost of the right organization to support standalone sales, finance, HR, legal, and other support function operations
  • Identified and built TSA requirements for the separation
  • Mapped a high-level transition plan with specific critical-to-success activities
  • Identified key levers of the go-to-market (GTM) strategy that needed to be actionable to enable growth

Results

  • Developed a baseline of the business support functions and estimated the costs for a new organization costing ~$4.1M in payroll
  • Partnered with other diligence providers to identify technology costs of $3.2M and paths to revenue increase of around $20M
  • Built a “stand-up roadmap” for activities to be realized pre and post closure in support of getting the carveout to standalone, including TSA requirements and post closure value creation activities
  • Built a financial model that calculated over $8.5M of net EBITDA impact from the realization of the transaction