CASE STUDY:

PROJECT HAMMER

CREATING PLATFORM IT FOR BUY AND BUILD STRATEGY

Background:

Established in 2016, this consumer services company quickly became a national leader in home maintenance and repair services, specializing in heating, ventilation and air conditioning, plumbing, and electrical services. Looking ahead, they wanted to make a greater impact in business via investments, growth, and services by expanding their footprint in a short amount of time.

 

Assessment:

With more than 6 entities serving customers nationwide, this company struggled under disparate financial and customer management systems. Also, business units faced redundant IT, accounting, and financial leadership. With these inconsistent and segmented systems, there were high operational costs and minimal visibilities into financial decision-making.

 

Solution:

  • Roll-up Strategy: RKON developed an early post-close integration initiative to create Platform IT that would serve as the foundation for the organization. This allowed the organization to move quickly in consolidating its companies into an efficient, single- functioning operation with one set of financials.

  • Platform Creation: Cloud-based solutions and outsourcing were also implemented to enable organizational realignment, creating a centralized operation while institutionalizing key processes.

  • Bolt-on Consolidation: By consolidating, the company eliminated redundant systems, processes, and staff, while simultaneously improving visibility and transparency in their decision-making and increasing their execution speed.


Outcome:

With enhanced project collaboration and cohesiveness, RKON’s partnership fostered key results. Our platform saved the company $250K per year. The shortened cycle increased effective returns and allowed early redeployment of funds. The Private Equity firm efficiently bought and consolidated 7 companies into one in under 3 years.