CASE STUDIES

Challenges › Impacts

Greenwood provides a combination of transaction, strategic, and operational expertise. We help our clients link strategy to results.

Read case studies summarizing situations, actions, and results from our recent client transactions. Client names are intentionally excluded – we always maintain client confidentiality.

PERFORMANCE


Fortune 500 – Merger & Acquisition Effectiveness


Situation:

Fortune 500 client had an aggressive M&A strategy, with highly skilled investment bankers and executive management prepared to deploy a significant amount of capital. However, they lacked the processes, and know-how to correctly account for, integrate, and bring to fruition the anticipated value from transactions.

Action:

Greenwood Management Advisors helped the client account for and integrate numerous transactions while simultaneously developing repeatable processes and institutionalizing the know-how for effective M&A.

Result:

Greenwood Management Advisors helped the client develop mature processes, optimized across all functional areas to better target and value deals with significant cross-functional input, and maximize return on investment for each acquisition.

Fortune 500 – Deal Structure


Situation:

Client had signed a letter-of-intent for ~$150m transaction, and was in process of drafting the purchase agreement.

Action:

Greenwood Management Advisors was asked to review the purchase agreement, quality of earnings report and data room to identify red-flags that could materially impact the value of the deal. We identified terms in the deal structure which would impact operational performance, and reduce earnings by over 40% for the first four years.

Result:

With our feedback the purchase agreement was modified, the transaction closed at the same price, and the acquirer avoided a potentially costly mistake.

Private Equity – Technology & Operational Diligence


Situation:

Multi-billion-dollar Private Equity firm had signed a letter-of-intent to purchase a technology based services company.

Action:

We were asked to complete technology and operational diligence to support bank financing. The diligence resulted in identification of an anticipated ~$200m in capex needed in the first two years to update the technology and infrastructure to be suitable for the growth strategy.

Result:

The Private Equity firm adjusted the final purchase price accordingly, the transaction closed and the investment is growing steadily under new ownership.

Private Equity – $1bn Carve-out


Situation:

Large institutional investor was approaching Day One on a $1bn carve-out. The existing external advisors had been unsuccessful in gaining C-level confidence around Day One Readiness, post-close service agreements, and communication plans. We were asked to review the work to date, and advise on areas for improvement.

Action:

We provided detailed feedback on what had been done correctly, and areas for improvement. Levering the existing investment made, we developed and executed a plan allowing the transaction to close without any business interruption. We continued to work with the target over the next six months to select, configure and go-live with an ERP platform.

Result:

This platform allowed the company to acquire their largest competitor within six months of the carve-out close date.

Fortune 1000 – Managing A Carve-out


Situation:

Client had closed on a carve-out from large national services company, and had 60-days remaining on the transition services agreement. Unfortunately, none of the work had been done to prepare the carve-out for post-TSA operations.

Action:

Greenwood Management Advisors was asked to provide a roadmap for the target. The roadmap included negotiating a more suitable TSA, developing a plan to build the software necessary for the target to operate without the seller, and integrate into the acquirer. We worked alongside accounting, information technology, and operations to execute on the roadmap.

Result:

Six months later, the target was fully carved-out, accurately accounted for, and fully integrated into the acquirer.