Case Studies

Boat Equipment Producer

Client Overview: One of the largest producers of recreational boating equipment in North America including, pontoons, bowriders, cruisers, cuddies, deckboats and sport boats.

Opportunities:

Co. A belonged to a private equity firm; Co. B was acquired as an add-on to the platform
Integration synergy opportunities were thought to exist; expertise did not exist within either company

Solutions:

Qorval engaged in the Chief Integration Officer role
Critical Integration Teams were formed to drive synergy savings, best practices and culture change
Served on the management team directing and participating in strategy definition
Modified and improved critically deficient business practices including bills of materials, product concept to production, pricing strategies, facility rationalization, and global sourcing strategies

Results:

Annualized synergy savings of over $10M
Established completely new business practices in areas in need of turnaround type change
Generated the roll-out of a cross-selling team to produce new sales opportunities that would add $25M to $50M in additional revenue
Recommended key management team changes and support
On-going monitoring of the appropriate processes and controls

Furniture Manufacturer

Client Overview: A leading upholstered furniture manufacturer. The Company was sold to key distributors, primarily in the midwest and eastern United States.

Opportunities:

Family owned business sold to an equity sponsor in 2002
Continued degradation of revenues and EBITDA over a four-year period. EBITDA worsened by $10M over a 30 month period
New management team brought in in 2005 contributed to a worsening financial and profitability situation

Solutions:

Qorval was initially engaged to address improvement areas and process issues. Within one month, the Board appointed Qorval as President and acting CEO
Close underperforming factory and make critical cost cuts quickly
Address quality problems and implement a quality focus within the factories
Work with Sales to open new accounts and strengthen existing accounts
Secure new financing (sponsors were not willing to provide a 45-day bridge loan to close)

Results:

First quarter EBITDA of $1M after many straight quarters of continued losses
Focus on quality began to change customer perceptions as "problem quality company"
Secured new financing if ownership had chosen to continue the company in business
Engaged and led an orderly liquidation outside of bankruptcy resulting in bank repayment at approximately 85% of debt

Personal Care Company Merger

Client Overview: Two independent competitors were looking to merge in a pre-defined buyout transaction. Each company was a leading personal care, health and beauty care manufacturer. The two companies agreed to a simultaneous acquisition and in preparation, had jointly identified integration synergies which were projected to save the combined entity approximately $13.9M within a two-year period.

Opportunities:

Rapidly analyze the operations of two different companies in separate locations
Understand the business drivers quickly and form an opinion to validate or invalidate merger rationale
Provide the equity firm with an analysis as to whether the integration savings were realistic

Solutions:

Visited all primary sites for the business and integration review
Performed a comprehensive due diligence on the $13.9M in synergy opportunities identified by the two companies

Results:

Expressed a definitive opinion on each area of integration savings
Proposed additional integration savings opportunities for the combined entity
Assessed the capabilities of executive management and operational personnel to execute the integration savings
Identified areas of risk to the equity firm that was looking to acquire the combined companies
Equity firm decided against pursuing the acquisition