According to Deloitte, “Corporations and private equity firms pin the most blame on external factors, but recognize the need for more effective due diligence and integration to make sure revenue projections materialize.”
A Transportation company needed market research to research potential business models’ viability. This company had five (5) diversified offerings and was concerned that further diversification would have adverse effects on their current business models.
A few other areas of concern were:
- Inadequate ability to research the market
- Inability to identify and map the growth opportunities
- Too close to five (5) offerings to identify those that should be sold
There has to be a keen focus on mapping out the ROI and additional benefits during the due diligence phase. Bringing in experts for finance, regulatory, and industry experts and generalists can help your team sift through information quickly and bring about positive results to meet and exceed projected profits. Having the right level of support will drive the project to a smoother finish that will result in meeting revenue and earnings expectations. Driving the transition is key to creating ROI as projected during the due-diligence phase.
The due diligence gave this company an outside look at the market and the service offering. This identified two (2) service offerings that should be sold. The market research previously completed by Dexter achieved outstanding cost savings by removing service offerings that were not suited to remain in the suite of services offered by the company. Dexter was brought in at the onset of the project:
- Reviewed Business plans
- Created market research supporting each area of service offered
- Created a road map for the sale of the two (2) service offerings
- Created a road map for the remaining service offerings
Dexter’s project allowed this company to continue three (3) of its service offerings and sell off two (2) service offerings with full market research to support the decision. The two (2) service offerings were researched for pricing purposes so that the company received a superior Return on Investment.
Dexter provides full-service mergers and acquisition service which includes pre-due diligence, due diligence and post-transition efforts to ensure that the purchase meets or exceeds the earning and profitability expectations and transitions are completed seamlessly.
Partnered with RadiusPoint, Dexter hands off the Accounts Payable tasks during the integration phase to ensure business continuity with all of the invoices that your newly purchased company brings to your organization. RadiusPoint can provide:
- Costs benchmarked and brought under control to stop the overspending
- Plans to move from some of the higher cost space to lower-cost space
- Restructuring of the logistics and eliminating redundant warehouse space
- Processes to better define procurement to cut costs
Having Dexter and RadiusPoint on your Mergers and Acquisition team will save your team time, allow your acquisitions to move faster and transition move seamlessly.