Service Area: Merger Integration & Planning
Client Type: Lower-Middle Market Private Equity Firm
Service Provider Type: ERP/HR Integration Consultant
Industry: Industrial Services – Construction & Engineering
A lower-middle market private equity firm sought BluWave’s assistance in integrating three specialty industrial contracting businesses into a new holding company. These businesses, operating in scaffolding, painting and other services across petrochemical, general manufacturing, and aerospace and defense sectors, collectively employed 1,000 professionals, with 900 in the field. The private equity firm required an experienced ERP/HR integration consultant to consolidate the entities, streamline HR infrastructure, and harmonize ERP systems to facilitate seamless growth.
Each business had its own HR and ERP systems. The PE firm wanted to combine them into a single higher-level legal entity. This required careful planning and execution to ensure a smooth transition for all 1,000 employees. Additionally, they had to address the distinct ERP systems in use – two on QuickBooks and one on Spectrum – and assess the feasibility of consolidating the businesses on the Spectrum platform.
BluWave presented multiple exact fit candidates to working on both the HR and ERP aspects of the consolidation. The selected expert facilitated the migration of all employees from the various entities into the new holding company, harmonizing the HR infrastructure.
The ERP consultant conducted a thorough evaluation and audit of the existing systems. They developed a comprehensive plan to migrate the two businesses on QuickBooks to the Spectrum ERP system, which would be the go-forward platform for the combined entity. This evaluation aimed to confirm the viability of the integration strategy while ensuring a seamless transition to the new ERP environment.
With the third-party resources selected by BluWave, the three specialty industrial contracting businesses successfully integrated into the new holding company. The consolidation streamlined HR infrastructure, providing a unified approach to employee management across the 1,000 professionals. Furthermore, the ERP systems were harmonized on the Spectrum platform, enhancing data visibility and operational efficiency.
The newly formed holding company, boasting $15 million EBITDA, is now equipped to drive growth and success in the industrial services sector.