Beyond the Numbers Operational Excellence Drives Deal Value
•March 2, 2026
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Why It Matters
Operational diligence uncovers hidden inefficiencies that can dramatically affect deal pricing and post‑close returns, making it essential for investors seeking sustainable value creation in manufacturing acquisitions.
Key Takeaways
- •Operational excellence reveals hidden value beyond financial statements.
- •Plant-level inefficiencies can cut margins by up to 50%.
- •Six critical factors: growth, cash, efficiency, capacity, strategy, governance.
- •Early due‑diligence visits identify redundant footprints and standardization gaps.
- •Post‑close integration drives value creation and smoother exit exits.
Summary
The episode centers on why operational excellence matters throughout the M&A lifecycle, especially for midsize manufacturing platforms. Host Roger Agenaldo interviews Henning Bronze and Gizai of Komoto Consulting, who argue that financial models alone miss critical plant‑level realities that can make or break a deal.
They outline six pillars that private‑equity sponsors scrutinize: growth potential, cash stability, cost efficiency, capacity utilization, strategic roadmap, and governance discipline. By visiting factories, consultants uncover mismatched IT systems, duplicated production lines, and plants operating at only half the benchmark output—issues that can erode margins by up to 50% and obscure true valuation.
Concrete examples include historic firms with 30‑40‑year‑old plants that lack standardization, and a case where Komoto evaluated twelve candidate sites, revealing a 20%+ return‑on‑sales upside once footprint consolidation and process harmonization were applied. The hosts stress that without on‑the‑ground operational insight, buyers risk overpaying and sellers may undervalue their assets.
The takeaway for dealmakers is clear: embed operational due diligence from the outset, use the six‑factor framework to shape integration plans, and leverage post‑close value‑creation initiatives to secure higher exit multiples. This disciplined approach transforms hidden inefficiencies into measurable upside and protects investors from costly surprises.
Original Description
Is your deal team tracking the right metrics, or just the loudest ones? While financials tell part of the story, they often mask the "Inhomogeneous Structure" that devalues a target before the ink is dry. In this briefing, we deconstruct the operational roadmap required to bridge the gap between a "good" deal and a "great" one.
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Executive Summary: Roger Aguinaldo sits down with Henning Bruns and Gizay Unal (Komoto Consulting), along with Behzad Mansouri (Charles Schwab), to reveal the "Signal" beneath the noise in manufacturing acquisitions. Learn why 20% return on sales can hide a crumbling operational foundation and how to stabilize targets through a "four-pillar" approach.
Technical Index (Shownotes):
0:00 – The M&A Advisor: Connecting the Dealmaking Elite
02:45 – The Operational "Oddball": Why Financials Aren't Enough
05:15 – Inhomogeneous Structures: The Hidden Cost of Redundant IT
08:30 – The Footprint Trap: Consolidation and Geographic Realities
11:45 – Automotive Supply Chain: Scaling and Harmonization Potential
14:20 – The People Problem: When Leadership is the Barrier to Growth
17:35 – Stabilization Pillars: Implementing "Lean" in Modern Manufacturing
21:10 – Final Outlook: Building a Forward-Looking Advisory Strategy
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#MandA #OperationalExcellence #PrivateEquity #Manufacturing #MAAdvisor
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