How we helped
With hundreds of locations across the U.S., a large collision firm was struggling with cash-flow management and a large debt burden. AlixPartners was enacting performance improvement processes when the company was acquired by a private equity firm.
The challenge at that point was to support the deal rationale, integrating the collision-repair firm with another acquisition by the PE firm, knowing the two companies had divergent leadership styles, processes, and tools. One was centralized, the other was decentralized. One was well-established across 300 locations, the other had rapidly scaled up, to more than 200 locations.
Our team set up an integration office to get buy-in from day 1, identify best practices, and integrate the two companies. We conducted workshops with executives to define the roadmap across operations, and set a synergy target of 25% that incorporated a reasonable reduction in force.
Rather than a completely prescriptive plan, we laid out a path forward with trade-offs for alternative options. Putting the plan into action, the firm pegged a 10% EBIDTA margin improvement.