1、M failure to set/stick to walk away price CEO/management ego 4revenue growth vs. profitability 4emotion vs. analysis Poor post acquisition integration inadequate planning failure to exploit revenue/margin potential disrupted relations with customers, employers and suppliers culture clash; failure to
2、 involve acquired people Strategic, financial and operating causes Trends Bain M Bain Analysis. The M Bain Analysis. RetailAlliedFederated Technology/ Telecommu- nications AT Bain Analysis However, many companies have created enormous value through successful acquisitions. Bain M open communication
3、of strategic vision ManufacturingCrown, Cork Bain Analysis HealthcareColumbiaHCABuild national healthcare group Good strategic fit and due diligence capture of cost-sharing and scale economies $5.7B However, many companies have created enormous value through successful acquisitions. Bain M Customers
4、 Interviews Foundry Whole grain: Foundry Resin coated: Frac Whole Grain: Frac Resin coated: $40 $150-250 $20-25 $160-240 Notes: In percent of end user price End-User Price Bain M downturns generally track broader economic slowdowns Each market segment of the silica sand industry is volatile and only
5、 frac has shown significant long-term volume growth: However, frac volume is still below its 1985 peak Real industry revenues have fallen by 1.6% since 1980 Real revenues per ton have fallen by 0.5% since 1980 Extraction, manufacturing and distribution should be viewed as different businesses with u
6、nique returns, customers and competitors Future environmental and health risks appear to be limited - regulations limiting access to and use of silica sands are not expected to become more burdensome in the near future Summary Bain M some impact on headcount Marketing and sales Retail Marketing team
7、s Client Servicing teams Institutional Marketing teams Combining under one brand eliminates ad spend and rationalisation of marketing teams Business Unit Overhead Office costs IT support Local HR Local accounting Combining facilities enables closure of offices and economise of scale amongst support
8、functions Corporate Centre Central Management Human Resources Finance Audit Combining to similar sized companies should result in significant economies of scale. Anticipate significant savings Function Description Rationale Impact (Cost savings on smaller operation) Synergies from merging AMD with a
9、 potential bidder can be evaluated by examining each segment of the value chain separately. Bain M intermediaries intermediaries strengthen pan-European operation Limited Limited 401K operation incl. admin ($33B) Bain M ROS based on three year average to 1996/97, as available Source: FAME; Company A
10、ccounts; Information Memoranda; MBD Report; Bain analysis Return on Sales (Operating Profit/ Turnover) Relative Channel Share* Leader S G P B Given the large number of players performing with low relative channel share, there exists potential for consolidation in the industry. R = 74% Bain M Industr
11、y interviews Note: * In this exercise, players product sales overlap in garden furniture * For this exercise, full impact on todays EBIT is considered, rather than full NPV calculation Bain M Information memorandum; FAME; Bain analysis Click Here for Back-up Data Bain M Information memorandum; FAME;
12、 Bain analysis Social Private Builders Merchant Specialists DIY Sales % 85 M21 M105 M35 M Click Here for Back-up Data Bain M Information memorandum; FAME; Bain analysis Player 1 Relative Distribution Strength Player 2 Relative Distribution Strength Bain M Information memorandum; FAME; Bain analysis
13、Our current focus is on only a few channels. The obvious growth for us would be to start going into others, but only if we had good access to them Operations Manager, Competitor Competitor X are very well known, and their brand has been a key lift for its acquired company Sales Director, Retailer I think G believe that by buying target some of th姄X搀匀偻搀讀缁朰H缀穒簀檠刀椀茂夃唃唒唒嬒漒眒眒眒
