Staffing co. needs more staff and better expertise for synergy due diligence

Key results:

45% net reduction in target’s annual operating expenses on a full run-rate basis.
Development of repeatable synergy due diligence process for future acquisitions.

Value levers pulled:

Synergies due diligence

Picture this...

You’re the largest industrial staffing firm in the U.S. As part of your growth strategy, you are pursuing the acquisition of a multi-site regional staffing agency, and you are also about to embark on a series of tuck-in acquisitions. Your team is struggling to support your sponsor’s growth strategy objectives because they lack the required bandwidth and repeatable processes. You need a partner to help, who can also provide an independent perspective of the potential synergies and develop an integration hypothesis and plan.

You turn to Accordion.

We provide assistance and due diligence around synergy achievement, by:

Performing preliminary and confirmatory synergy analysis and developing a comprehensive synergy estimation model across a range of headcount and non-headcount functions, including:
- Back-office (Finance, HR): Evaluate Finance and HR’s ability to absorb the target’s work based on business volume and operational capacity.
- Front-office (Leadership, Sales and Recruiters, Ops staff): Perform detailed branch-level review of key operational leaders, including a market-by-market review.
- Facilities: Consider savings from office consolidation based on detailed branch-level review.
- Marketing: Benchmark against recruitment and advertising spend based on number of associates.
- IT: Consider opportunities in combined license and infrastructure spend to support retained employee headcount and office footprint.

Conducting workshops to evaluate integration hypotheses, timeline to achieve identified synergy targets, and integration challenges associated with synergy realization.
Coaching integration team on best practices to right-size integration approach to smaller tuck-in acquisitions in order to streamline integration planning and reporting while maximizing deal value.

Your value is enhanced.

You expect to achieve a 45% net reduction in your target’s annual operating expenses on a full run-rate basis. You also now have a refined investment case to present to your sponsor and a repeatable synergy due diligence process for future acquisitions.

Enhanced value:

You reap multiple benefits, including:

45% net reduction in target’s annual operating expenses on a full run-rate basis.
Development of repeatable synergy due diligence process for future acquisitions.