• To develop a strategy that would take this US based automotive component
manufacturer from a domestic supplier to a global supplier.
• The revision to Ford's supply chain strategy (Ford 2000) required this US based
automotive component manufacturer to supply components on a global basis where previously it supplied domestic requirement which meant a 3 fold increase in capacity and the development of a global supply chain.
What we did
• Delevep a workshop based scenario which included customer input and strategic plan which analysed: global demand, competitors, political constraints, distribution & warehousing, transportation and supply chains along with plant capacity and extension.
• We then assisted the leadership team with negotiations with competing suppliers to develop merger discussions.
• The resultant compelling strategy would ensure continuing operations and higher returns on investment involving a series of international mergers between the company and its competitors and robust implementation and rationalisation programme which delivered substantial synergies.
• Capacity was increased by 400% Margins improved by 8% and Supply time improved from a number of weeks to 45 minutes.
|GROWTH BY ACQUISITION|
|Case Study - Growth & Expansion|
|Copyright 2009 Deshel. All rights reserved.|
|SALE OF CASH-STRAPPED COMPANY|
• To enable this Engineering & Construction Company (MCF) to continue trading and provide an exit strategy for its long standing stakeholders.
• Engineering & Construction Company had over the last 20 years a continuing serious shortage of capital and had exhausted any capital input opportunity.
• The existing stakeholders had not received a dividend for that time and wanted to exit their investment. The executive team had sought to raised capital without providing a cohesive startegy or plan.
What we did
• We conducted internal and external reviews of the company which revealed a strong reputation for competency and expertise.
• Its trade name was regonised for dependability, quality and ability to get the job done.
• We helped the leadership team to prepared an information memoramdum and lead negotiations with a number of aspiring well funded Engineering & Construction companies in different parts of the value/supply chain
• A takeover was agreed creating a vertically integrated company which listed as an IPO at 44c (2005) now $1.4 (DCG)
• The leadership team was maintained with input from the takeover company
• MCF received $1.2m on merger in cash and shares.