CASE STUDY:

PROJECT AFTERBURN

IT DILIGENCE BRINGS TREMENDOUS GROWTH

Background:

For many years, this regional leader has specialized in B2B aftermarket automotive parts distribution, specifically servicing independent auto body shops and insurance carriers. After the company’s buyout in 2018, they sought to achieve add-on growth while also optimizing the platform for scale. The organization has 600 employees with 25 locations in 14 states across the mid-Atlantic market.

 

Assessment:

The platform company was running on a custom, outdated e-commerce and financial system, which failed to promote a positive customer experience. The legacy system stunted market growth, with high operational costs, poor visibility, and excessive security risks.

 

Solution:

RKON immediately recognized the need for a new, cost-effective and automated system to improve customer experience and gain market advantages. To optimize operational performance, RKON provided many services, including:

  • Due Diligence: RKON performed ongoing Pre-LOI and due diligence services, which are fee-sensitive based on the size of the target.

  • Modernized Systems: RKON’s execution plan integrated e-commerce, customer management, inventory control, and financials into a scalable, unified platform, with a focus on delivering market-leading client experience.

  • Outsourced IT: RKON took over IT during the transition to improve speed to execution, eliminate internal politics, and stabilize the IT operations during the transformation.

  • Consolidations: RKON consolidated new add-ons into the platform company as part of the 100-day plan. Client and employee satisfaction were improved from day one, virtually eliminating the risks of a buyout.


Outcome:

RKON’s newly developed add-on strategy institutionalized key processes and increased customer loyalty on underperforming add-ons with solid market reputations. Additionally, the standardization of systems created cost opportunities and optimized security controls to reduce security risks in the organization. Since the normal IT risks associated with buy and build strategies were reduced, the organization is now positioned to rapidly expand, with RKON’s leading IT platform at the center of its growth.