Customs-Bonded Container Freight Station (CFS) Acquisition Due Diligence
Business Challenge
Long Point Capital, a private equity firm with offices in New York and Detroit was interested in investigating the largest Container Freight Station (CFS) company in the USA, with facilities in New Jersey, California, Illinois, Georgia, Texas and South Carolina. The client was interested in evaluating company value and risk and identifying opportunities for immediate and long-term improvement and growth. They required a thorough and expedited assessment of operational practices, information technologies, facilities and key management personnel, including a discrete on-site evaluation of facilities and personnel.
How WCL Consulting Helped
WCL Consulting’s specialized Due Diligence Team conducted a comprehensive and objective assessment of the CFS company including:
- Human Resources
- Organizational Structure
- Management Controls
- Facilities
- Safety
- Security
- Information Systems
- Capacity
- Operational Efficiency
Company strengths and weaknesses were evaluated and benchmarked against industry and cross-industry leaders. The assessment and report were completed within the several-week timeframe required. The Assessment validated company representations, identified areas of concern and identified opportunities for improvement. The WCL Report not only identified company status and potential, but also provided detailed actionable recommendations.
The Assessment revealed several significant capacity and information system issues that were previously unknown by both the company’s top management and the client. This information enabled Long Point Capital to more accurately value the acquisition and prepare a post-transaction plan to assure long term success for all involved. Feedback received later from Long Point Capital indicated that the WCL process was very thorough and helpful in their planning and decision making.