Medical Technology

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  • Customer:confidential
  • Category:Investment opportunity
  • Date:April 2018
  • Status:Completed
  • Sales:120 Mio. EUR in 2017
  • Tags:industrial, med tech, mechanical engineering

Project Description

An initial due diligence of the target’s operational performance and key drivers to provide an overview and indication concerning operational improvement potential as well as risks and threats. The investor was keen to get an understanding of untapped value and has therefore mandated Amvis Partner to conduct an initial operational assessment to support their offer. The objective of the operational due diligence has been to identify the potential for cost and capital efficiency in operations (particularly manufacturing, assembly and supply chain), purchasing, engineering as well as organizational topics. As a result, the client expected a better assessment of the potential transaction value and an identification of risks or opportunities associated with the acquisition.

What we did

We worked with an experienced senior team of manufacturing, supply chain, purchasing and engineering experts to perform an off-site review of specific operations, functions and company data. Data has been made available by the client and has been supplemented by our research and market intelligence. This off-site review identified first critical points that required clarification during site visits and interviews with the management team. During site visits we conducted an Operational Excellence Assessment, evaluated planned investments and used Leadership Performance as well as operational KPI’s to identify future potential.
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Final results

Drivers of current manufacturing footprint, e.g. cost driven vs. customer requirements could be clearly identified. As well as the implementation status of the desired production system and not yet tapped potential out of this. Due to the fact that operations take place in different locations we could design three different future scenarios for the footprint of the company. In addition to that significant improvement potential on inventory-level could be identified including a road map to realize this potential in less than 150 days.
  • Assessment of Operations
  • Identification of inventory reduction of more than 50% in the base case
  • Productivity improvement potential above 25%
  • Savings in material costs of more than 4%
  • Evaluation of planned investments concerning possible future best case scenarios