NATURE OF ASSIGNMENT:
Primary: Due Diligence Review
Primary Industry: Automotive & Transportation
Company: $150 million distributor of automobile wheels
Situation: The Company, which is a profitable distributor in the auto accessory aftermarket, was contemplating an acquisition involving a manufacturer and distributor of equal size within the same industry.
Focus Scope: The Company sought assistance from Focus to participate along with the equity sponsor in preliminary meetings, prepare a due diligence report incorporating forecasts for the combined entity, and recommend operational improvements to maximize profitability.
Tasks Performed: Focus prepared forecasts to reflect the anticipated performance of the two merged entities post-acquisition, and also assisted in drafting the Asset Purchase Agreement.
Results: As a direct result of Focus’ efforts, the Company had an achievable proforma financial plan which clearly identified anticipated shut-down costs relating to the Target’s manufacturing plants.