John Schuerman Consults

Case Study #1 | Case Study #2 | Case Study #3

Planning & Execution: Getting things done faster and with greater impact

Situation: Opportunity to acquire a strategic supplier’s business. The acquiring company was the largest customer of the target acquisition. The product line was profitable for both companies. The company had no prior experience with acquisitions of this type and had never gone into long term debt before. Furthermore, this acquisition needed to be handled carefully to preserve the company’s relationship with its number 1 customer. Lastly, the staff needed help integrating this business into daily operations, never having done something like this before.

Action taken: Providing an objective perspective, I worked with the business owner to undergo a “due diligence analysis,” which included thoughtful evaluation of the ROI. Several scenarios were considered, using variable market conditions, which included a best case, worst case, and most likely scenario. Once it looked like it was worth pursuing, we negotiated the acquisition requirements: financing, legal contracts and arrangements for key partnerships to distribute the product lines, and created marketing plans. From this, we concluded that the ROI was in line with both the strategic business objectives and long-term profitability goals. A successful purchase negotiation took place and the business assets were purchased.

I developed a plan for the new product lines with key members of the management team. I worked with the team to implement Project Management tools to maximize the value of this acquisition. In order to expedite the integration cost-effectively, separate plans were developed for all key areas:

a. Marketing
b. Sales and distributorships
c. Supplier management and purchasing
d. Customer Service and order fulfillment
e. Inventory control
f. Patent protection and control of intellectual property
g. New Product development

To ensure the integration was on track, these plans were managed using the Plan-Do-Check-Act cycle and reinforced during weekly meetings with the integration team.

Results: The new business segment outperformed all our projections in sales and profit — and it continues a strong contributor. The initiatives were completed within just 6 months. This included a standard operating procedures manual covering all key aspects of the new product line. Compliments from numerous customers were received. From the initial analysis to the final step in the integration process, everyone was pleased with the results. In fact, it was one of the most seamless acquisitions I’ve ever seen.