Acquisition and Divestiture Assignment

CLIENT:
A major manufacturer of original equipment and replacement heat transfer equipment for the automotive, truck, equipment and industrial markets.

PROBLEM:
Acquisition of a regional manufacturing and distribution organization allied with our client's primary business brought with it another line of products and services not directly related to this primary business. Our client required a detailed evaluation of this business, its fit with the primary business and recommendations concerning its long-term viability.

ASSIGNMENT:
We undertook a comprehensive evaluation of both the manufacturing and distribution elements of the business as well as a detailed survey of regional competition. In addition, national trends and changes in the industry were carefully evaluated. Market estimates and outlook scenarios were developed depicting a variety of growth or no-growth options.

RESULT:
The long-term national trends in the industry under evaluation indicated extensive restructuring and repositioning would be necessary for this business to continue profitable growth. Our client utilized MacKay & Company's evaluation to identify potential buyers and sold the business to one of those candidates.