MOTORES WEG ACQUIRES THE INDUSTRIAL ELECTRIC MOTORS OPERATION OF ABB IN MEXICO
WEG has had a successful export operation in the US, Mexico and Canada for many years. As WEG grows internationally, it has decided to develop manufacturing and value added capacity closer to its major markets such as the USA.
A base in Mexico improves WEG's ability to respond to customers more effectively in both Mexico and the US.
The purpose was to complement the technical, financial and legal due diligence work with an assessment of all the commercial aspects of ABB Motors Mexico including:
Product and service strengths and weaknesses;
Sales and service personnel qualities;
Customer terms and conditions of trade;
Customer support, warehouse, delivery and logistics operations;
The project was completed rapidly through our associates in Mexico to allow the results to be used in the final deal negotiation and in the detailed implementation planning.
The report enabled the WEG team to:
Validate the price being paid for the acquisition;
Identify product weaknesses and services gaps that needed fixing;
Identify new product opportunities and plan their introduction;
Plan training and staff development programs for the acquired personnel;
Plan a program to integrate the new company into the WEG culture;
Replace and add distributors and representatives in key sectors;
Address management and organizational problems.
Companies always complete financial and legal due diligence audits as part of an acquisition. WEG recognized that much of the real value is locked up in the commercial strengths and weaknesses, which are not shown on the company balance sheet.
WEG achieved a smooth integration and is now embarking on follow-up phases of work to broaden the product offering and add technical capacity.