We assist our investment fund customers on three main points:

• operational due diligence,
• post-merger integration,
• the implementation of programs to optimize cash or cut costs.

The success of operational due diligence is rooted in three main key factors:

1. A high level of functional and sector-based expertise: more and more funds rely on specialized agencies, like Argon Consulting, since their own teams, made up essentially of transaction specialists or strategic consultants, usually fail to understand the complete operational complexity of the target and, consequently, resort to levers that are overly simplistic or that cannot be used in the field.
2. A clear focus on the key points: analyzing the risks and identifying the potential upsides or downsides are the key components of the due diligence process. In view of the tight deadlines, this can only be achieved with high levels of expertise that pre-target the key operational priorities right from the start.
3. Effective management of continuity between pre-closing and post-closing: complete buy-in by the management team that is put in place is essential for the effective implementation of the levers for the creation of value identified in the due diligence phase.

The post-merger integration phases are also a key part of a successful acquisition. In the post-closing phase, once the company has been acquired, the results of the due diligence phase must form the starting point of the integration plan and of the business plan to be prepared with management.

The post-merger integration phase (PMI) must include short-term measures for the phases that follow the closing, and longer-term measures for the implementation of the target organization:

• identification of potential synergies and planning of the integration phase,
• development of an integration strategy and deployment of regular tracking measures during the post-merger phase (PMI scorecard),
• management and tracking of the PMI program,
• support for the functional teams involved in the PMI phase.

Finally, and if the situation so requires, we deploy cash optimization programs. There are a number of means of optimizing the WCR. Companies usually perform well in terms of their accounts receivable and accounts payable (plus the capex, when it comes to their need for cash), but that they have difficulty in understanding the importance of reducing their stocks.

In order to make a quantum performance leap in this field, it is necessary to address the complete value chain. Even if the various levers clearly depend on the sector of activity, they do, in fact, impact almost all of the processes related to operations:

• Supplier performance: make suppliers more punctual, more flexible and more respectful of their commitments (quality, etc.)
• Manufacturing: make flows even tighter, motivate production teams to meet deadlines and cut production cycles or repair TAT and ensure that the means of production is available and reliable, etc.
• Supply Chain Planning: limit uncertainty, improve the anticipation and management of risk to make sure that the offer matches the demand (procurement, production, distribution, etc.), better locate and size stocks, set the right service level targets, etc.
• Logistics: build a more efficient distribution network that is more reliable and more reactive to an uncertain demand, speed up flows (milk runs, cross docks, etc.),
• Research and Development: cut development cycles, design products that are easier to manufacture (internally or externally), etc.
• Information systems: make the best use of the available tools or develop them in order to support the actions to be taken and facilitate the sharing of information, collaboration and decision-taking, etc.

Argon Consulting can provide input in the diagnostic phase and the operational implementation phase.

The same is true of cost optimization programs, which are also cross-functional projects that are often difficult to manage for companies.

Argon Consulting’s direct and company portfolio customers include Sun Capital Partners, Arcapita, Lbo France, Eurazeo, Mid Ocean, Allianz, CDC Capital investissement, etc.