Cost / Benefit Efficiency Example - M & A

MIC CHF 0.1 Mio 0.5 yrs invested, 5 yrs benefit CHF 20 Mio profit

Involved countries: Switzerland – Finland – Italy

• Mc Kinsey: Acquiring company shall discontinue immediately taken over competing product having 40 % market share and foster own Italian production
• HBDI-Analysis of 2 merging organizations and its key players
• Market- and customer analysis confirms high product loyality: Personal continuity, service, spare parts etc. for taken over product
• Step-by-step production shift to Italy costs less and allows 5 years parallel production with slow disappearence of taken over product
• Loyal customers were not lost to third party competition