Private Equity
Mergers & Acquisitions
Operational Value Enhancement Ahead of Manufacturer Sale
How targeted operational improvements strengthened performance, reduced risk, and increased enterprise value ahead of a planned sale.
INDUSTRY: Private Equity Manufacturing
SERVICES: Relocation and Consolidation. Footprint Strategy. Communications Plan.
Situation.
A private equity-owned Tier 1 medical device manufacturer had excess capacity and high infrastructure costs. The COO believed two plants could be closed but wanted an in-depth evaluation of the manufacturing footprint and optimization plan to increase the low asset utilization.
Actions.
- Collected data, reviewed layouts, identified 16 potential single-points of failure.
- Developed a network strategy that would eliminate 3 plants.
- Created detailed Management Plan: Process flow charts (master routers) were developed for more than 30K Active SKUs, enabling the development product transfer strategies based on machine work center capabilities/capacity.
- By keeping ultimate decision power within the Board, Seraph supported contingency planning before WARN Act disclosure requirements.
- Created communication plans which served as neutral voice in customer meetings to provide transparency.
Results.
- Closed three under-utilized plants and seamlessly transferred production lines to other facilities.
- Achieved more than the forecasted $10M in operational cost savings related to closures.
- Total project cost payback achieved < 18 months
- OEM customers viewed the project as a success, happy with continuous supply and improved lead times from the new locations.
- Due to new “center of excellence” approach, top line growth was an unexpected side effect including increased orders and deeper customer relationships.
