Operational Plan Integrates an Acquisition

TypeOperational Planning
Quick Facts$25 million manufacturer (“LinerCo”) and leading supplier of intermediate bulk moisture barrier liners in the United States. The Company offers a multitude of flexible packaging products servicing both dry and liquid applications. Majority-owned by private equity group after the sale by the company’s (mostly absentee) founder.
ChallengesThe acquisition of LinerCo’s leading foreign competitor was not well integrated into the US parent’s operations. Because of the somewhat casual style of LinerCo’s founder, the management team responsible for running the US Company produced only a simple financial plan (budget) each year. Both the new majority owner and the newly acquired European management team were frustrated by the lack of clear operating expectations from the US parent.
ApproachMcHugh & Company was retained by the Board to design and implement an Operational Plan and to facilitate the communication process between both management teams (see link to Management Offsites). Jim McHugh worked with the functional business leaders to identify and prioritize the key operational initiatives; in addition, each initiative was ranked according to its expected impact on revenue, gross margin, spending and the organization.
ResolutionLinerCo now had backup to support the annual financial plan. The process enabled the management teams to identify real priorities and to establish a means for holding team members accountable for progress against plan. It also helped complete the integration of the two companies.
Links to the other operational planning cases:
  1. New Strategy Generates Action…Operational Plan Produces Results
  2. Operational Plan Brings Clarity to New Team

To view a list of all McHugh & Company Case Studies, click here.