Post-merger integration and strategic realignment and restructuring
Focus areas: Post-merger integration and strategic realignment and restructuring
Company:
- Globally active family-run group, headquarters in Germany
- Measurement and control technology, sensors and fittings, €1 billion turnover, 10,000 employees worldwide
Responsibility:
- As BU Manager in a permanent position within the international group, among other things responsibility for the purchased fittings previously marketed as “accessories”. With the acquisition, responsible for the operational post-merger integration of a manufacturer of industrial valves with locations in Italy and Romania, € 12 million in sales and up to 190 employees
- Matrix responsibility and, as part of the post-merger integration, direct technical responsibility for sales, technology, production and the supply chain of the company acquisition.
Initial situation:
The company specialized in the supply of instrumentation valves. In recent years, the focus of activity has shifted to the production and delivery of “standard items” for international OEM customers, which can be planned for the long term.
In the last two years before the acquisition, the company had lost many qualified employees, particularly in administration.
The company had already lost long-term supply contracts with two of its largest OEM customers immediately prior to the acquisition. As a result of the acquisition, further smaller sales shares with direct competitors of the new owner were lost. In total, this resulted in a slump in sales of more than 40%.
Measures:
- Strategic reorientation of product portfolio and sales towards
Simple, fast quotation and order processing and short-term delivery for pre-designed, configurable, multi-variant products - Reorganization of production and supply chain to increase flexibility with Make to Stock, Assemble to Order and Make to Order
- Development and introduction of IT tools for quotation and order processing
- Creation of sales and marketing tools for this portfolio
- Training and motivation of the business unit’s sales organization on this portfolio
Result:
- Turnaround with sales increase of 60% already in year 2
