CLIENT INDUSTRY: MEDIA
FUNCTIONAL TOPIC: STRATEGIC & COMMERCIAL DUE DILLIGENCE
Our client was assessing an investment opportunity in a Scandinavian company with sales of > €45m. A quick turnaround plan was needed for the transaction to generate sufficient value to justify the investment in the business for the client.
What Strategy Labs did
Our team performed a two stage (pre- and post-acquisition) strategic due diligence of the target company. We reviewed the cost structure and product portfolio fit with the group’s broader strategy.
- The client was able to take informed business and personnel decisions immediately after the transaction.
- Annual cost savings of €2m were identified. The existing network of offices was benchmarked with 5 potential closures suggested.
- Cash flow optimization measures worth €1.8m were suggested, with initiatives yielding €0.7m implemented immediately after the acquisition.
- Potential headcount reduction was planned, with 10% reduction in the number of FTEs achieved within the first quarter after the acquisition.
- One business unit was identified as a possible spin-off.