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 nationwide salvage automotive company completed 5 acquisitions in the same year. As the acquisitions occurred, all telecom invoices were brought over to Accounts Payable with no inventory of the services. All invoices were paid and contracts honored without any type of review.
There has to be a keen focus on mapping out the ROI and additional benefits that are to be driven post-acquisition. 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 first 3-4 months are critical to this transition.
- 25 Toll-Free numbers identified that did not belong to the Client – $1,500.00 per month
- 400 phone numbers moved to the corporate LD account contract rates – $10,000.00 per month
- Multiple lines canceled, DSL identified not needed
RadiusPoint’s Inventory and Audit services identified errors on the billing that stemmed from contracts that were signed by unauthorized personnel, as well as, services that were no longer necessary due to the merging of locations, services, and assets. RadiusPoint defined the physical address, all phone numbers and circuits billed to that address with all features and charges billed to each service. This line item inventory and audit created first-year savings of over $1MM.
Total first-year savings: $1.3MM
Dexter provides a full-service acquisition service which includes pre-due diligence, due diligence, integration 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.