SCALA CASE STUDY

Product Sourcing and Component Purchasing Assessment

Private Equity Company

Background & Brief

The client, a Private Equity company, were considering the acquisition of a percentage of a German based company and asked SCALA to support their due diligence process from the perspective of manufacturing, product sourcing, component procurement and company capability. Specifically, they wanted to assess supply and manufacturing risks going forward and opportunities for beneficial changes.

Project Approach

  • Assess availability and price inflation of key materials and components
  • Review capability of current product manufacturers, mix of business and risks and resilience
  • Review relationships between company being acquired, manufacturers and component/materials suppliers
  • Define and detail opportunities for cost savings / value creation
  • Benefits & Results

    A clear document was produced outlining for the Private Equity Company’s Management Board the risks of the current structure, the opportunities for improvement and the risks associated with these opportunities

    Final Outcome

    Acquisition proceeded
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