$160M Leader in Solid & Liquid Containment Rentals Engages DLC for Business Process Redesign to Determine Long-Term Profitability of Newly Acquired Business Unit
The client was concerned with the lack of profitability in one of its newly acquired business units.
Post-acquisition, the acquired business unit’s financial results were underperforming compared to the client’s expectations. The root cause of underperformance was not apparent because:
- There was no system in place to accurately track and forecast contract costs for the entire contract duration, making it difficult to capture actual margin
The process to capture inter-company activity in financial statements was insufficient, possibly distorting the business unit’s results
- Shared overhead resources were not allocated properly, further distorting operational results for each affected business unit
Within 8 weeks of the project start date, DLC presented recommendations to the Board of Directors. The detailed analysis DLC provided allowed the BOD to make the critical business decision of whether to retain or spin off the business unit.