18-Month Transformation: Operational Due Diligence, Value Creation, and Exit Prep Delivered at Speed

18-Month Transformation: ODD, Value Creation, and Exit Prep Delivered at Speed

Leading modular building manufacturer partnered with TBM to address capacity, process efficiency, and future growth amid surging demand. Targeted actions delivered rapid operational improvements, significant cost savings, and a successful company exit.

Leading manufacturer of durable, pre-fabricated, and customised steel modular buildings. Specialises in the design, production, and installation of smart building products engineered to meet specific and niche needs, including data centres, pump houses, and substation control buildings. The company is anchored around its strong commitment to customer service, its extensive experience and know-how, and a continuous focus on innovation. With fewer than 1,000 employees, the firm has broad global reach, with its products in use in all 50 U.S. states as well as numerous countries around the globe.

Challenge

Three main priorities: provide due diligence for an acquisition, drive value creation and capacity planning, and prepare for a successful exit.

An initial assignment focused on performing operational due diligence (ODD) on an acquisition target led to a trio of priorities and challenges – including the ODD assessment, assisting the firm with value creation initiatives and capacity planning, and ultimately working with the senior team to prepare the company itself for a successful exit. This was also a period of constant change for the firm, characterised by shifting priorities, a steady stream of new employees, and historically high demand levels.

Solution

We assessed how an add-on acquisition would integrate, uncovering improvement opportunities and a major engineering bottleneck.

The client wanted to expand its operations to add capacity and increase overall productivity and had identified an add-on target with favourable synergies. TBM performed an independent capacity assessment to determine how the add-on would mesh most effectively with the company’s existing sites and identified key improvement areas. In the process, we discovered a significant bottleneck in the overall engineering process, and our evaluation and recommended fix improved productivity and reduced lead times. Last, the firm itself was acquired during this period, and we worked collaboratively with its senior team to prepare for what was ultimately a successful exit.

Results

In 18 months, we completed Operational Due Diligence, resolved operational bottlenecks, and supported the exit process.
  • Completed ODD, value creation/bottleneck work, and exit preparation on an expedited 18-month timeline to help the company meet key strategic objectives.
  • Identified between $1.7 to $2.3 million in annualised improvement opportunities relating to capacity and worked with the client to execute on the work.
  • Engineering bottleneck fix and additional lean/value creation efforts that helped increase the client’s overall output by four assignments.
  • For exit, prepared and delivered objective evaluations and recommendations on the client’s capacity planning, operational footprint, expansion plans, and headcount/staffing to enable continued growth for the future buyer.
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Frequently Asked Questions

Why is operational due diligence important during mergers, acquisitions, or exits?
Operational due diligence helps a company understand whether an acquisition target truly fits its strategy, capacity needs, and growth plans before committing to the deal. In this case, an initial due diligence assignment on an acquisition target grew into a wider program that covered value creation, capacity planning, and exit preparation for the manufacturer itself. This structured approach allowed the business to navigate a period of constant change—shifting priorities, new employees, and high demand—while still improving productivity and positioning for a successful sale.
How can a manufacturer increase production capacity without sacrificing quality?
A manufacturer can an increase production capacity by first understanding how potential acquisitions or new sites will work with existing operations, then fixing internal bottlenecks that slow work down. In the case study, the company worked with an external partner to complete an independent capacity assessment, which showed how an add-on site could mesh with current locations and where key improvements were needed.
What business impact can a focused operations transformation deliver?
A focused operations transformation can simultaneously boost output, unlock hidden financial value, and strengthen the business for future growth or a sale.

Topics in this Case Study

Private Equity Value CreationPerformance Improvement

At a Glance

Client

Leading manufacturer of durable, pre-fabricated, and customised steel modular buildings.

Results

Improvements increased output by 40% and identified $1.7–2.3 million in annual value. The company was equipped for ongoing growth under new ownership.

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