Case Studies

When Parimal arrived in Italy to assume his new operating role managing the PM Oil & Steel S.p.A, he found a business with a low morale and poor business processes. The most acute problem was initial quality and poor parts and aftermarket services. The company did not have a metric to measure its parts fulfilment efficiency. Parimal designed a metric to capture the parts fulfillment rate within 24 and 48 hours of receiving the order. He found that historically the company was fulfilling only 30% of orders within 24 hours. In addition, the order processing itself was taking a long time before actual fulfilment of picking, packing and shipping could be started. He reviewed and improved the order process flow in the UpTime® system. He also updated the ordering algorithm that had not been reviewed for the last three years. He made changes to the spare parts supply chain though they were taking a long time to implement because of the structural difficulties. Above all, he taught the team the value of visual management by tracking fulfilment rate in real time and displaying on a big board for the whole team to observe their performance and improvements. The fulfilment rate increased to 50+% within 4 months. Still a long way from the acceptable industry benchmark of over 90% but with the supply chain improvements still to come, the team was very optimistic of achieving their goals within a year.

Fantuzzi

While looking to diversify Terex’s crane group’s product portfolio, Parimal learned in 2006 that Fantuzzi S.p.A, a leading manufacturer of port equipment, was available for acquisition. He quickly developed a relationship with one of the group Presidents, who was also a confidant of the owner. Parimal still remains friends with him. J.P.Morgan’s alternative investment group was quite far advanced in its due diligence to invest a significant amount of capital in the struggling Fantuzzi. Parimal was not willing to advise his CEO and the board to compromise due diligence in order to beat JP Morgan’s bid and he allowed the deal to slip through. Parimal got another opportunity in early 2008 to compete for the same business as the Fantuzzi business continued to struggle and was on the verge of bankruptcy. This time, the leading competitor of the crane group – Manitowoc – was rumored to be in the pole position. This time Parimal and his team moved quickly and displaced Manitowoc and managed to sign the contract while getting substantial concessions from Fantuzzi’s Italian lending banks. However, before the transaction could close pending regulatory approvals, Lehman Brother’s demise triggered a global financial crisis that came to be known as the Great Recession. Fantuzzi’s business declined precipitously and Parimal’s team decided to trigger the Material Adverse Change (“MAC”) clause of the purchase agreement. There were not many precedents of successful MAC conclusion but then the Great Recession was unprecedented. This led to a protracted and often bitter multi party negotiations, with the seller and their various lenders. Parimal traveled to Milan every month for the next ten months and finally negotiated a much sweater deal for Terex. This transaction was nominated by KPMG and one of their partners as one of the M&A deals of the year in Italy.

China Crane

The global business development was one of the core responsibilities of Parimal at Terex. In mid 2000s, he was looking for ways to increase the company’s exposure to China to capitalize on the growing market there. He quickly identified truck crane market as one of the fastest growing market. For perspective, the truck crane market in China was bigger than all the markets in the world combined. However, there were barriers to acquiring companies in China in general, but particularly in truck crane. Any foreign investor could own only up to 50% of any product that was driven on-road. The biggest two companies – XCMG and Zoomlion – were either government—owned for affiliated. After meeting with each of the top six-seven companies, Parimal settled on the number three company – Sichuan Changjian Crane. Through a very complicated structuring, Parimal was able to satisfy the 50% foreign ownership limit while securing a complete management control and 95% of the economic interest. He created a preferred stock kind of structure that limited the JV partners’ economic interest to 5% of dividend. This required both on-shore and off-shore structures that satisfied selling shareholder’s upfront economic interests. No other company until then had managed to accomplish the management and equity control while satisfying the 50% ownership rule in China.

Work History

PAR BD – Managing Partner, Connecticut and Texas 2018 – Present
Operational and M&A Consultant
Partnered with and advised a former executive colleague on serial acquisitions of two cabinet manufacturing companies.
  • Developed the business case for a roll up of newly acquired businesses in a fragmented industry. Identified the growth potential of the housing sector in the middle of a pandemic.
  • Provided post-acquisition operational and financial integration of the businesses for six months.
Consultant to Manitex International to raise capital and supervise the finance and accounting team in the middle of a restatement and SEC investigation. Subsequently became responsible for the P&L of Manitex’s international business.
  • Raised approximately $30M in strategic financing from Tadano Ltd.
  • Supervised restatement of three years of historical financials and submission to SEC in record time.
Transitioned from consulting and hired as Executive Vice President of International Operations at Manitex International and a Board Member and Legal Representative of PM Oil & Steel S.p.A. Italy, a Manitex subsidiary
  • Improved (i) chronically poor parts and service delivery time immediately; (ii) the product pipeline; and (iii) monthly production rate by 20% with minimal additional cost in less than one year.
Vice President / Director, Business Development – Terex Corporation, Connecticut 2003 – 2017 $5B company with 3 divisions specializing in aerial work platforms, mobile cranes and materials processing. Recruited to expand business globally through M&A. Quickly accli­mated to nuances of five semi-autonomous segments to guide the executive team in strategic acquisitions, joint ventures, strategic alliances and other synergistic transactions to expand global presence and market share.
  • Played an integral role in enhancing value through business development activities. The company grew revenue 2.6X from $3.8B to $9.9B while adding $650M in net income over 5 years prior to the Great Recession.
– Challenged business leaders to think strategically and pursue “non-obvious” opportunities, meeting strict financial, business and market tuck-in objectives. – Raised the level of sophistication in market research, valuation and deal structuring. Avoided over-valued acquisitions in favor of alternative deals and international market development.
  • Achieved corporate transformation goals through targeted divestitures in 2010, positioning the company strategically and financially to embark on a transformational path through the acquisition of Demag Cranes in 2011 and subsequent disposition of Material Handling & Port Solution segment to Konecranes.
– Led a competitive auction process for the mining business that resulted in a sale to Bucyrus International (now owned by Caterpillar) for $1.3B. Developed a synergy model that lent support to the decision to accept part of proceeds in stock. The value of Bucyrus stock increased significantly after the announcement validating the synergy assumptions. – Divested a business in Germany in a structured transaction overcoming complex regulatory issues. Created a bid process for a business with no earnings and pension liabilities of $100+ M that resulted in four competitive bids. – Continued corporate transformation by divesting the Roadbuillding and off-highway dump truck businesses. – Structured a JV with Manitex that allowed capture of tax credits worth $60M which were about to expire. – Divested underperforming compact construction businesses in Germany, UK and India to three different strategic buyers for $50M more than what senior management expected.
  • Implemented a focused, synergistic business development model including targeting under-valued assets and purchase/ turnaround of distressed companies through intense business, financials, products and markets analyses.
– Enabled mining business to expand its product line and add $200M in incremental sales after executing a $140M acquisition within 5 weeks despite being a late entry into the process, and closing two “add-on” acquisitions. – Created a new “leg” for Cranes in Port Equipment by acquiring Fantuzzi, outmaneuvering other strategic and private equity suitors. Renegotiated a new transaction in 2009 at a lower value which also resulted in a creative tax solution for repatriation of foreign earnings. The transaction was nominated in Italy for M&A of the Year Award.
  • Leveraged multinational background and innate understanding of emerging markets to pursue offshore opportunities, which were projected to grow faster than legacy businesses over the next several years.
– Engaged in extensive government relations and local partner selection/vetting, particularly in China and India, as well as other countries with strict regulations pertaining to foreign corporation ownership. – Established a 50/50 joint venture in India, and later expanded investment interest first by 20% and later to 99%, which offered Terex more control over production and distribution of an under-performing local partner. – Set-up a Greenfield factory in China, acquired a second factory, and invested over $30M to expand capacity. – Established a 50/50 joint venture in China using a creative offshore deal structure that locked in the back-end transaction price and gave Terex control from the beginning of the negotiations.
Vice President, M&A, Industrial Group – Dresdner Kleinwort, New York  2000 – 2002
Project leader in the M&A practice of a niche investment bank specializing in cross-border advisory and deal execution for global corporations in the industrial manufacturing sectors.
  • Forged a long-standing client relationship with Terex. Advised on ~$500M in M&A transactions; structured a creative post-signing price adjustment based on closing debt of an acquisition; and co-managed a $200M high yield offering.
Senior Associate, M&A & Restructuring – Houlihan Lokey Howard & Zukin, New York 1999 – 2000
Recruited as a Wall Street M&A expert to build out a new practice area for the firm’s New York office serving small and mid-cap businesses in the industrial manufacturing, printing and retail industries.
  • Advised a public company over a period of 9 months on strategic alternatives regarding a retail subsidiary.
  • Prepared a $500M pre-packaged financial restructuring of a $1.1B global commercial printing business.
VP/Associate, Pharmaceuticals Corporate Finance – BEAR, STEARNS & CO. INC., New York  1994 – 1999 Launched career on Wall Street out of business school. Gained expertise in business development, debt/equity financ­ing and M&A deal structuring, due diligence and valuation across the distribu­tion, life sciences, media and retail sectors. 
  • Lead-managed the largest financing in Bear Stearn’s history; recognized as Institutional Investor’s 1996 “Deals of the Year,” a $1.6B debt offering for Time Warner with complex ownership structures and split credit rating.
  • Advised Waban, Inc. on strategic options for its 2 retail divisions. Completed the $1B+ tax-free spin-off of BJs Wholesale Club. Delivered business purpose letter to the IRS, which received a tax-free ruling in a record two months.
  • Lead-managed IPO of an early stage gene therapy biotechnology company under difficult market conditions.

EDUCATION

MBA, Finance – The University of Texas at Austin 1993 MS, Materials Science & Engineering – The University of Texas at Austin 1992

BS, Metallurgical Engineering – IIT – BHU, Varanasi, India