Pre-Acquisition Interim Management for Leading European Automotive Supplier
During a pre-acquisition due diligence between a Finnish automotive supplier and a leading Japanese conglomerate, several compliance issues were identified. However, the specific problems were not pinpointed.
The client, a leading European automotive supplier, therefore hired ARC Consulting to both identify and solve the specific compliance issues in order to enable the completion of the acquisition.
The client wished to identify any risk significantly impacting the organization’s ability to complete the acquisition.
A compliance analysis with all the relevant laws, regulations and policies can benefit the organizations by keeping things running smoothly, reducing costs and also maintaining its position in the industry.
By conducting the compliance analysis, ARC Consulting could pinpoint and identify the specific compliance problems, as well as take care of them. Therefore, the due diligence could be finalized.
ARC Consulting initiated the process with a compliance risk assessment to help the organization understand the full range of its risk exposure.
During the compliance risk assessments, compliance issues were identified in the Management, Finance-, Sales- and Purchasing-departments. Key stakeholders in these departments were dismissed and ARC Consulting took the responsibility of Interim Management. This included the role as General Manager, as well as other key positions.
ARC Consulting managed the operations for a period of eighteen (18) months and restructured the organisation. This included setting new processes as well as recruiting a new management for key positions.
ARC Consulting provided its independent opinions to advise the client throughout the project.
ARC Consulting also recruited new personnel for the General Manager position as well as most other key positions to improve the overall operations as well as the achieve full compliance.
- Cost savings in purchasing: 25%
- Sales margin increase: 10%
- Full compliance achieved that passed the acquirers final due diligence.
- Completed acquisition.