Case Studies: From Diligence to Value Delivery

Nothing demonstrates the impact of Caravel’s due diligence approach better than our client success stories. Below, we highlight several case studies that show how our work during a deal translated into tangible post-acquisition results. These examples span different segments of the manufacturing industry, but all share a common thread: identifying significant improvement opportunities during diligence and then helping clients capture that value afterward.

Case Study 1 – Global Fiber Manufacturer: $300M in Synergies Identified and Captured

Our client, a multinational chemical company, was evaluating the acquisition of a Polyester and Nylon fiber business with operations across 44 sites worldwide.

Challenge

Perform a thorough operations and environmental due diligence on all sites in a short time frame, and identify potential synergies and performance gaps.

Caravel’s Solution

We deployed a team of seasoned operations experts to visit and benchmark each site’s performance against industry best-in-class. Despite having just a single day at many sites (due to access limitations by the seller), our team gathered critical data on throughput, costs, maintenance, and practices. We compared all 44 plants to identify best practice gaps and “hidden plant” opportunities, areas where capacity or efficiency could be increased with improvements. During diligence we developed a 3-5 year improvement plan for each site and a high-level global optimization strategy. This included recommendations to consolidate or rationalize certain facilities and optimize the product mix (for instance, shifting more production to high-margin polymer products rather than low-margin fiber where feasible). We also formulated an outline for a worldwide Operations Excellence (OpEx) program that would introduce standardized work processes and best practices across all sites post-acquisition.

Results

Our due diligence identified over $300 million per year in cost reduction and synergy opportunities, a transformative amount that significantly enhanced the deal’s appeal. After the acquisition, Caravel played a key role in turning this plan into action. We assisted the client in implementing the global OpEx framework we designed, ultimately rolling out best practices to all acquired sites (except a few that were closed as part of the optimization). A new central operational excellence team was created with our guidance to sustain these improvements. Within a few years, the company had captured roughly $300 million per year in savings through a combination of efficiency gains and strategic site consolidation. Furthermore, the client institutionalized an Operating System (platform of processes and tools) that we helped develop, which they continue to leverage as they make future acquisitions. This case exemplifies Caravel’s end-to-end involvement, from deep diligence insight to on-the-ground execution, yielding a massive ROI for the client.

Case Study 2 – Pine Chemicals Company: $50M+ in Post-Acquisition Improvements

A private equity firm engaged Caravel to evaluate a global pine chemicals business (maker of adhesives, resins, fatty acids, etc.) with nine production plants on multiple continents.

Challenge

Conduct a rapid operations and EHS (Environmental Health & Safety) due diligence to uncover key risks and upside opportunities, essentially providing a go/no-go recommendation and a value improvement plan for the acquisition.

Caravel’s Solution

Our experts visited all nine sites worldwide, even though the seller only permitted one day per site for the assessment. Leveraging our efficient benchmarking methodology, we quickly gathered data on each plant’s material balances, cost structure, and performance metrics, and we compiled a comprehensive diligence package under very tight timelines. We identified several key risk areas, for example, process safety issues like potential spill risks and deferred maintenance on tank storage, and developed mitigation plans for each. Simultaneously, we pinpointed multiple improvement opportunities: scenario modeling of the production process revealed ways to reduce low-value byproducts and improve overall yield; we saw chances to upgrade technology (like better automation for distillation control) and enhance reliability to increase uptime. For each finding, we estimated the financial impact and incorporated it into a 3-5 year post-acquisition implementation plan.

Results

Our diligence suggested that the company had an achievable upside of about $35-45 million per year in EBITDA improvement within 3 years if our plan was executed. The private equity client proceeded with the acquisition, and Caravel was retained post-close to help kickstart the improvement program. The results spoke for themselves: within 2 years, over $45 million/year of improvements were realized, and by year 3 the annual savings grew to more than $52 million, exceeding the initial targets. We achieved this by working closely with plant teams on the ground, introducing new process controls that boosted yield, implementing a maintenance and reliability improvement initiative that reduced downtime, and solving several technical bottlenecks (for instance, optimizing feedstock mix for better output quality). In addition, critical environmental and safety risks identified during diligence were addressed early, preventing costly incidents and ensuring a smoother integration under the new ownership. This case study highlights how Caravel’s rapid but thorough due diligence not only informed a successful acquisition decision but also laid the groundwork for a highly profitable transformation afterward.

Case Study 3 – Multi-Site Polymer & Chemicals Business: Turnaround Plan Adopted by the Industry

Caravel supported a large petrochemical client in performing due diligence on a phenol, bisphenol-A (BPA), and polycarbonates business with multiple plants in the US and Europe.

Challenge

The client needed to identify major operational risks, benchmark performance across several integrated sites (including upstream and downstream processes), and determine the potential upside before acquiring the business.

Caravel’s Solution

We assembled a team with deep phenolics and polymers expertise and created a detailed material and financial model of all sites, capturing how intermediates flowed between the facilities. We conducted extensive data analysis and on-site benchmarking, evaluating everything from raw material yield in phenol production to cycle times in polymerization, comparing them against both internal best performers and external benchmarks. Our team identified a number of upside opportunities. We found ways to increase phenol production rates by debottlenecking certain steps and improving catalyst performance, and we spotted significant yield improvement possibilities in the downstream BPA and polymer plants by reducing off-spec production. We also assessed capital expenditure needs and formulated performance targets for the next 3 years, essentially creating an improvement plan alongside the diligence.

Results

In this particular case, our client was ultimately outbid by another buyer. However, the story didn’t end there. The competitor who won the deal was so impressed by the depth of our due diligence analysis that they retained our team to execute the improvement plan we had outlined. In essence, what began as a Caravel due diligence engagement evolved into a post-acquisition integration project for the new owner. The improvement and assimilation plan we developed was rolled out across all the acquired sites, with Caravel’s experts guiding the implementation. The operational excellence initiatives (spanning technical fixes to process and organizational changes) yielded substantial gains. In total, the new owner achieved about $185 million per year in improvements, roughly in the middle of the $140-200 million range we had identified. While our original client didn’t acquire the asset, this case study underscores the credibility and value of Caravel’s work: our due diligence was not a theoretical exercise but a workable blueprint for transformation, one that delivered real-world ROI when put into action.

Case Study 4 – Post-Acquisition Transformation of a Non-Wovens Manufacturer: $100M EBITDA Increase

In this example, Caravel was engaged after a private equity firm had acquired a non-wovens manufacturing company (producing materials for diapers, hygiene products, construction, etc.). The new owners were concerned that the company’s operations were underperforming and that the full value of the acquisition was not being realized.

Challenge

Assess and benchmark the performance of multiple plants (across North and South America, in this case) that had come together through various prior acquisitions, and then drive a program of operational improvements and integration to create a unified, high-performing enterprise.

Caravel’s Solution

We performed a comprehensive operations excellence assessment across all sites, effectively a post-acquisition due diligence. We established a “model site” benchmark, identifying one plant or an amalgam of best practices to define what good looks like in terms of efficiency, staffing, maintenance, and other key metrics. We found that practices varied widely: some sites were running reactively with inconsistent maintenance and supply chain processes, a legacy of being separate companies historically. Caravel identified over $40 million per year in profitability improvement opportunities by closing these gaps. We then worked with the client to standardize operations across all plants: this involved developing common work processes, clear roles and responsibilities, and consistent KPIs and performance measures for all facilities. We helped the company form an internal Operational Excellence (OpEx) team, and we piloted the new OpEx program at four sites with Caravel consultants coaching the effort. Importantly, we also created a playbook to use this standardized operating model as a template for future acquisitions, since the PE firm intended to continue growing the business via roll-ups.

Results

The transformation was remarkable. Across the internal sites, the implementation of Caravel’s Operations Excellence framework yielded over $100 million per year in EBITDA improvement through a combination of cost reduction and productivity gains. This included improvements like higher equipment uptime, cycle time reductions, more optimized product mix (dropping low-margin products), and headcount optimization through attrition and efficiency, all done in a sustainable, systematic way. The company went on to acquire two additional businesses in the following years, and using the OpEx model we helped establish, they assimilated those new acquisitions smoothly and rapidly. The end result for the private equity owner was a tremendous value increase: they eventually sold the combined business for $2.5 billion (at roughly 9× EBITDA, versus the ~6× multiple they paid originally), reflecting how the operational improvements translated into higher valuation. Caravel’s role in this was not a one-off project but a multi-year partnership, essentially acting as a long-term transformation ally to build the client’s internal capabilities and ensure continuous improvement. This case highlights that our commitment to value capture extends far beyond the initial diligence or assessment; we strive to set our clients up for ongoing success and outsized returns.