As a business integration facilitator LAVA helps organisations to create the value that is targeted with a Merger or Acquisition (M&A). Here is the story of the integration of Electro Entreprise (EEG) and Van Braeckel, both Technical Service Providers, and how LAVA helped.
The EEG Group uses a buy and build strategy to increase its scale and scope to evolve towards a provider of a wide range of technical services. Electro Entreprise and Van Braeckel are the group’s two largest entities, with Electro Entreprise active in Electrical Installations, Low and High Voltage, Panel Construction and Security systems, and Van Braeckel active in HVAC and sanitary solutions, with a specific focus on the health care industry. When Van Braeckel was acquired a few years ago, the intended goal was not only to increase market share, but mainly to add HVAC and sanitary solutions to the group’s service portfolio. While both companies were great performers, a few years after the acquisition, the board felt that an important amount of value was still on the table, left unexploited. Furthermore the group planned additional acquisitions and a merge of both companies, where the goal was to create the EEG Group and by merging Electro Entreprise and Van Braeckel to define EEG NV. In addition the group kept on acquiring new businesses, which emphasized the need to attain a growth proof group structure with a shared services and an organisation able to support future acquisitions. Electro Entreprise approached LAVA to help identify and realise synergy opportunities and enable a sustainable revenue and profit growth.
LAVA started with an organization scan to identify synergies, best practices and performance improvement opportunities. Based on these insights, LAVA coached the new extended management team (key members of both organisations) with the development of one common group vision and strategy, which encompassed among others, a future proof group structure with shared services, a common market approach and branding, common operating principles, and alignment in financial control..
An operational plan (short and long term) was built to execute the strategy and to improve the performance of core processes. In parallel, the team developed a communication approach for internal and external roll-out.
This exercise proofed to be intensive and crucial. It defined the cornerstones for the future EEG Group and the integration of Electro Entreprise and Van Braeckel as EEG NV. Buy-in was created throughout both companies for one common structure with clear roles and responsibilities.
This exercise also created mutual trust and strong belief in the common goal and the road towards it’. Currently, EEG NV / the EEG Group is in the midst of the strategy roll-out phase, with support of LAVA in one of its implementation tracks to harmonise and improve the procure-to-pay process.
Read more about LAVA and its journey with clients on www.lava-consulting.be