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In the scenario of Sterling Equity s leveraged buyout of AutoTech Inc., a manufacturer of automotive components, a detailed analysis of the first year s
In the scenario of Sterling Equitys leveraged buyout of AutoTech Inc., a manufacturer of automotive components, a detailed analysis of the first years financial outcomes postacquisition reveals significant changes. Prior to the acquisition, AutoTech Inc. was facing production bottlenecks due to inefficient manufacturing processes and overstocked inventory. Postacquisition, the companys revenue increased from $ million to $ million, operating margins improved from to and the inventory turnover ratio rose from to times a year. Given this context, which of Sterling Equitys strategies is most likely to have driven these positive financial results?
AIntroduction of advanced automation technologies in manufacturing.
BExpansion into new automotive markets, including electric vehicles.
CStreamlining of supplier contracts and renegotiation for better terms.
DImplementation of lean manufacturing principles and justintime inventory.
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