Operations Advisory Services
Kroll advises on operational process improvement to increase efficiencies in transaction, expansion and turnaround situations that ultimately increase valuation.Contact Us
Explore Transaction Advisory Services
We advise industry management and private equity firms on the financial and operational performance of companies. Our clients achieve growth and cost savings by process improvement, in/outsourcing or integrating their businesses. Kroll addresses the operational performance in the consumer, industrial, manufacturing, and technology markets, and optimizes growth strategy and internal operations to increase company value.
Key Segments of the Growth Cycle
Pre- and post-deal for buy and sell side operations improvement analysis to support transaction outcomes of EBITDA opportunity and value creation:
- Operations diligence
- Carve-out, synergy
- Merger integration
Turnaround and operations restructuring to restore profitability when market disruption has impacted financial performance:
- Cost reduction
- Product rationalization
- Strategic sourcing
Expansion and Xformation
Manufacturing, procurement and distribution, footprint design and implementation, including streamlining office functions to support rapid revenue expansion:
- Footprint and supply chain strategy
- Operational strategy
- Senior level, hands-on engagement in pre-deal operations diligence and post-deal operations improvement
- Improvements in operations that yield EBITDA and free cash flow
- An approach of equal parts instinct and analysis, while pragmatic in our methods
- Deliver results when opportunity value and capture is key, pressure is high and urgency is imperative
Buy-Side Operations Diligence of a Founder-Owned Manufacturer in Transition
A founder-owned manufacturer with high customer concentration experienced rapid growth with new products to a new consumer segment. The manufacturing and assembly processes were entirely manual and absent any planning and process support software (ERP, BOM). A strong relationship with a private equity firm under the letter of intent and a new CEO who had been groomed for two years formed the basis of succession. Kroll provided operations expertise to develop the roadmap to reposition the business for the next phase of growth.
Key Deliverable Operations Diligence Report
- Contracting third parties for non-core processes
- Consolidating the footprint to a single manufacturing location
- Implementing ERP on a timeline that addresses employee retention and proper knowledge transfer to yield $3 million (mn) on $4 mn of EBITDA
Turnaround Situation at a Consumer Product Company
A consumer product manufacturer with $60 mn revenue breached its debt covenants due to low EBITDA, made significant inventory adjustments and experienced two sudden executive departures. Lenders and new management requested Kroll conduct a rapid assessment of the finance, operations and overall business to identify and prioritize the issues affecting the business and develop the roadmap to restore EBITDA growth.
Key Deliverable Turnaround Plan
- Restored lender and owner confidence in inventories and financials.
- Identified $4 mn of potential EBITDA opportunity by:
- Identifying “red flag” shop floor practices
- Terminating suppliers of routinely defective product
- Relocating manufacturing
- Reducing widespread supply chain operations complexity
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Mergers and Acquisitions (M&A) Advisory
Kroll’s investment banking practice has extensive experience in M&A deal strategy and structuring, capital raising, transaction advisory services and financial sponsor coverage. Duff & Phelps acquired Kroll in 2018 and unified under the Kroll brand in 2020.
Distressed M&A and Special Situations
Kroll professionals have advised hundreds of companies, investors and other stakeholders at all stages of distressed transactions and special situations.
Comprehensive Due Diligence Solution
Our Comprehensive Due Diligence solution helps clients minimize risks and make the most informed business decisions. We support in the areas of tax, compliance and regulatory, ESG, operations/strategy, M&A, financial and accounting, investigations, disputes and cyber/IT risk.
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by Robert A. Bartell, CFA, Josh Benn, Vijay Sampath, Howard P. Lanser, Jeremy Sacks, Josh Keatts