How a specialty retailer streamlined a complex add-on acquisition

The Struggle: Managing a Complicated First-Time Acquisition

A vehicle parts manufacturer and distributor acquired a power sports business to expand its market presence. This was their first major add-on acquisition, and leadership was overwhelmed by the complexity of integrating two businesses with different operational models. Without a structured plan, the risk of inefficiencies, misalignment, and stakeholder confusion was significant.

The central issues included:

• Diverging operational models: One company used a third-party logistics (3PL) provider, while the other relied on a centralized warehouse.
• Unclear sales and marketing integration: Two e-commerce platforms needed to be merged while maintaining customer trust.
• Lack of structured communication: Employees, customers, and partners needed clear guidance on how the transition would impact them.

The company also needed to manage financial reporting, HR and payroll integration, and cultural alignment between two distinct workforces. Without a strategic roadmap, the transition could lead to disruptions, inefficiencies, and a prolonged period of uncertainty.

The Turning Point: Implementing a Structured, Data-Driven Integration Plan

Recognizing the complexity of the challenge, the company engaged Elliott Davis to develop an organized integration strategy. Leveraging their experience, industry knowledge, and analytics-driven approach, the Elliott Davis team designed a seamless transition plan focused on operational alignment, workforce integration, and stakeholder communication.

The plan included targeted initiatives in three key areas:

Operational Strategy & Future-State Planning

• Evaluated inventory management strategies and developed a future-state operating model for fulfillment, storage, and distribution.
• Conducted a SKU analysis to identify overlapping products and improve procurement efficiency.
• Standardized supply chain processes to improve scalability and cost-effectiveness.

Organizational Design & Sales Alignment

• Mapped out an organizational structure that defined roles and responsibilities post-merger.

• Created a sales integration plan to merge sales teams and unify e-commerce platforms.

• Built a Day 0 to Day 100 roadmap, aligning financial, HR, operational, and marketing teams.

Change Management & Communication Strategy

• Developed a clear communication plan for employees, customers, and partners.

• Provided guidance on facilitating town halls and leadership meetings to address frequently asked questions and set clear expectations.

• Advised on integrated cultural alignment initiatives, including cross-company engagement events to unify teams.

The Resolution: A Seamless Transition

Through structured planning and hands-on execution, the integration process was smooth and efficient, allowing the client to transition seamlessly into its expanded market position. With a clear roadmap in place, disruptions were minimized, and both businesses quickly aligned under a unified operational strategy. Inventory management was streamlined, leading to cost savings and improved efficiency in the fulfillment, storage, and procurement functions.

Other achievements included:

• Sales and marketing functions were successfully merged.

• Employee concerns were addressed through transparent communication.

• Payroll, benefits, and workforce policies were aligned.

By promoting collaboration and cultural integration through team events and leadership alignment, the two organizations came together as a single, well-coordinated entity. With an improved operational structure and scalable model in place, the client was well-positioned for continued growth and future acquisitions.

The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.