Investment support

Supply chain performance is a crucial dimension of corporate viability - the return on sales and capital. Every supply chain process influences many areas of the P&L and the asset base. Acquisitions and mergers frequently depend on releasing cash to repay debt, as well as quick actions from a new team to increase margins.

Because of our specialism in business and supply chain management, LCP supports due diligence, post-acquisition merger and rationalisation for businesses that are recognised logistics and distribution organisations, and those where changing or rationalising the operations is a major part of the benefit case.

We recognise three distinct phases in the acquisition process:

• pre-deal - applying a version of our RapiSCAN methodology, we quickly home in on the big issues and provide an opinion on the supply chain viability and potential that exists in a specific situation. Our knowledge across sectors enables us to provide benchmarks in support of the assessment
• doing the deal - transition planning must span infrastructure, people, systems, processes and technology. Our research and experience confirms that companies who plan for integration before the deal is concluded enjoy greater shareholder returns
• transition - operational change programmes are often on the critical path for many of the major integration/separation projects and must be mobilised fast. Our post-acquisition support increases the speed of value creation by contributing specialist expertise to release inventory and cut operating costs. Diagnostic and implementation teams work together to fast track the benefit stream in the vital first three months.

Examples of where we’ve helped include:

• carrying out the operational due diligence on a European logistics business for a major investment business in France using RapiSCAN
• evaluated the acquisitions of a distributor and identified the issues and potential in the market and the operations
• designed and implemented the consolidation of physical distribution following a combined acquisition and divestment deal.