Retail & Consumer
MERU CASE STUDY
$30M of cost savings identified for a merger of two home goods companies
COMPANY OVERVIEW
- Our client, a leading Private Equity fund in the United States, was looking to merge two existing home goods companies and grow the business into a $500M+ company
- MERU was engaged to (a) identify cost synergies across warehousing and SG&A, and (b) develop the integration strategy, including risks, mitigation plans and resourcing
- Due to the COVID-19 pandemic, all work was completed remotely, this included 100+ interviews, workshops and virtual warehouse tours
OUR APPROACH
- Evaluate the strategy, department operating models, organizational structure, systems, processes and financial performance of each company
- Identify and quantify opportunities that result from (a) company overlap, (b) structural adjustments, and/or (c) productivity gains
- Develop integrated product and brand strategy, including consolidated financial targets and SKU’s
- Assess supply chain performance, including warehouse optimization, and re-design the warehouse footprint to lower costs
OUR IMPACT
Identified $30M p.a. of cost savings to be delivered over an 18-month timeline.
Developed the integration plan with the CEO’s and Executive Leadership Teams for the upcoming 24 months, including pre-announcement planning, 100-day post announcement execution plan, and 2-year strategic roadmap.