Securing a  Build-up

Our solutions

External growth allows the company to grow quickly. However, it is not without risks.
The target has to be complementary in terms of products and / or markets. In addition, integration must be prepared and then driven.

Fontenay Operating Partner builds the integration plan and, if necessary, drives the project.

Case study

Base line

This industrial company, which employs about 400 people, has a good profitability and its management and shareholders are considering acquiring a competitor, in a more difficult situation. The acquisition will accelerate the growth of the company by giving it access to parts of the market, which were not easily accessible.
The offer made to the competitor opened a period of exclusivity to allow the necessary studies and audits. The shareholders and the company’s management are questioning themselves about the origin of these low profits of the target and the possible remedies.

Response of Fontenay Operating Partner

In five weeks’ time, FONTENAY Operating Partner’s conducted two operational analysis, one focused on the mother company, in order to establish benchmarks, and the other one on the target company. This allowed to identify the causes of underperformance of the target and to propose a plan in two phases:
• During the first phase, with a duration of 6 months, the target is left autonomous. The goal is to quickly improve its performance, to review its organization, and to rationalize the product lines of both companies,
• During the second phase, the integration of the two companies is achieved, with mixed teams, both in the industrial and commercial fields.

Results

Fontenay Operating Partner launches the improvement plan and drives it. After a few months the mixed teams are set up and integration starts. Fontenay Operating Partner’s support is then reduced to a few days per month, with the task of organizing and monitoring the project. The mission ends after 9 months, with a successful and well controlled integration.