Add-On Acquisition
Synergy Tracker

—Executive Summary

This tracker measures the add-on program directly from entity-level general-ledger activity. The instance contains three entities whose posting histories identify them as add-ons: US 2 (first postings September 2025 — eleven full months of data), Canada (March 2026 — onboarding, immaterial activity), and Vietnam (August 2026 — month zero). US 2 is the only add-on with a measurable track record and is the focus of this report.

The answer to the board's question — with a caveat

US 2 is genuinely improving: EBITDA margin has risen every quarter since close (9.2% at month one to 14.7% at month eleven), driven by a 30% reduction in monthly operating expense — approximately $155K of annualized cost-out captured, concentrated in headcount-related and G&A lines. That is real, GL-verified synergy capture.

But two of the four underwritten synergy categories show no capture at all, and one is unmeasurable: there is zero vendor overlap between the platform and US 2 — procurement consolidation has not begun; US 2 still runs its own full facilities and IT stack ($26.5K and $24.5K respectively over the window); and because US 2's revenue arrives as twelve monthly summary journals from an unintegrated legacy system — with no customers, items, or invoices in NetSuite, and no US 2 employees on the employee master — revenue synergies cannot be measured at all. The integration-dependent synergies are stalled behind the systems integration itself.

1Add-On Inventory & Integration Timeline

US 2 standalone trajectory — the measurable add-on

Interim months omitted for brevity; the full series underlies the chart and appendix queries. Revenue is flat (~$146K/mo average, no growth) — all EBITDA improvement is cost-side.

2Cost Synergies by Category — Actual vs. Underwritten

Revenue synergies

3One-Time Integration Costs vs. Budget

4Pro Forma Combined EBITDA Bridge

5Findings & Actions for the Next Board Cycle

AAppendix A — Assumptions & Methodology

1. Underwritten targets are illustrative placeholders. Deal-model synergy targets and integration budgets are not recorded in the ERP. Shaded columns use round illustrative figures (headcount $120K, facilities $22K, procurement 1% of addressable COGS, systems $25K, revenue $150K) solely to demonstrate the tracker's mechanics. All capture-status assessments ("captured / not started / no data") rest on GL evidence alone and are unaffected by the placeholder values. Replace with sponsor model before board use.
2. Acquisition dates proxied by first-posting dates. US 2 = Sep 2025, Canada = Mar 2026, Vietnam = Aug 2026. If actual close dates differ, "integration month" counters shift accordingly.
3. Entity attribution uses line-level subsidiary (transactionline.subsidiary) joined to GL postings; the transaction-header subsidiary field is not exposed to SuiteQL.
4. US 2 headcount-synergy attribution. The $155K annualized opex reduction is measured as (month-1 opex − month-11 opex) × 12 = ($42,654 − $29,777) × 12. Salaries & Wages is the largest declining line, but because US 2 payroll runs outside NetSuite (zero US 2 employee records), the split between headcount reduction and other G&A economies cannot be verified from the ERP.
5. EBITDA definitions follow the 100-Day Baseline: D&A = 6800-series accounts (all recorded in US 1); no interest or tax lines exist. US 2 shows no D&A — its fixed assets have not been transferred into the platform's FAM subledger (noted as an integration gap).
6. Pro forma tie. Entity build-up ($1.968M) vs. consolidated baseline EBITDA ($2.022M): the $54K difference is entity-allocation rounding, elimination-entity activity, and month-boundary journal timing; within tolerance for a monitoring exhibit. The consolidated figure remains the statement of record.
7. US 1 platform EBITDA carries the baseline's Jun–Jul costing caveat (Scenario C vs. D); this tracker does not re-adjudicate it.
8. Procurement overlap test counts vendors with at least one bill in each of US 1 and US 2 in the TTM. The empty result is definitive within NetSuite; US 2's actual vendor relationships live in its legacy system.
9. Revenue-synergy measurability. Cross-sell tracking requires customer-level transactions for the add-on; US 2 has none in NetSuite (12 summary journals only). Flat revenue (~$146K/mo, no trend) is reported as corroborating — not proving — zero capture.
10. Extraction date. All queries executed August 17, 2026 against the live production instance.

BAppendix B — Data Lineage: Queries

SELECT s.name AS subsidiary, MIN(t.trandate) AS first_posting,
       MAX(t.trandate) AS last_posting, COUNT(DISTINCT t.id) AS txns
FROM transactionline tl
JOIN transaction t ON tl.transaction = t.id
JOIN subsidiary s ON tl.subsidiary = s.id
WHERE t.posting = 'T'
GROUP BY s.name ORDER BY MIN(t.trandate)

SELECT s.name AS subsidiary, TO_CHAR(t.trandate,'YYYY-MM') AS mth,
 ROUND(SUM(CASE WHEN a.accttype IN ('Income','OthIncome') THEN -tal.amount ELSE 0 END),0) AS revenue,
 ROUND(SUM(CASE WHEN a.accttype = 'COGS' THEN -tal.amount ELSE 0 END),0) AS cogs,
 ROUND(SUM(CASE WHEN a.accttype IN ('Expense','OthExpense') THEN -tal.amount ELSE 0 END),0) AS opex
FROM transactionaccountingline tal
JOIN transaction t ON tal.transaction = t.id
JOIN transactionline tl ON tal.transaction = tl.transaction AND tal.transactionline = tl.id
JOIN account a ON tal.account = a.id
JOIN subsidiary s ON tl.subsidiary = s.id
WHERE t.posting = 'T'
  AND t.trandate >= TO_DATE('2025-08-01','YYYY-MM-DD')
  AND t.trandate <  TO_DATE('2026-08-01','YYYY-MM-DD')
GROUP BY s.name, TO_CHAR(t.trandate,'YYYY-MM')
ORDER BY s.name, TO_CHAR(t.trandate,'YYYY-MM')

SELECT s.name AS subsidiary, a.acctnumber, a.fullname, ROUND(SUM(-tal.amount),0) AS ttm_amount
FROM transactionaccountingline tal
JOIN transaction t ON tal.transaction = t.id
JOIN transactionline tl ON tal.transaction = tl.transaction AND tal.transactionline = tl.id
JOIN account a ON tal.account = a.id
JOIN subsidiary s ON tl.subsidiary = s.id
WHERE t.posting = 'T'
  AND t.trandate >= TO_DATE('2025-08-01','YYYY-MM-DD')
  AND t.trandate <  TO_DATE('2026-08-01','YYYY-MM-DD')
  AND a.accttype IN ('Expense','OthExpense','COGS') AND s.id IN (2,3,7)
GROUP BY s.name, a.acctnumber, a.fullname
HAVING ABS(SUM(tal.amount)) > 100
ORDER BY s.name, a.acctnumber

SELECT v.entityid AS vendor,
 SUM(CASE WHEN tl.subsidiary = 2 THEN 1 ELSE 0 END) AS us1_bills,
 SUM(CASE WHEN tl.subsidiary = 3 THEN 1 ELSE 0 END) AS us2_bills
FROM transaction t
JOIN vendor v ON t.entity = v.id
JOIN transactionline tl ON tl.transaction = t.id AND tl.mainline = 'T'
WHERE t.type = 'VendBill' AND t.trandate >= TO_DATE('2025-08-01','YYYY-MM-DD')
GROUP BY v.entityid
HAVING SUM(CASE WHEN tl.subsidiary = 2 THEN 1 ELSE 0 END) > 0
   AND SUM(CASE WHEN tl.subsidiary = 3 THEN 1 ELSE 0 END) > 0

SELECT t.type, COUNT(DISTINCT t.id) AS txns, ROUND(SUM(-tal.amount),0) AS revenue
FROM transactionaccountingline tal
JOIN transaction t ON tal.transaction = t.id
JOIN transactionline tl ON tal.transaction = tl.transaction AND tal.transactionline = tl.id
JOIN account a ON tal.account = a.id
WHERE t.posting = 'T' AND a.accttype = 'Income' AND tl.subsidiary = 3
GROUP BY t.type

SELECT s.name AS subsidiary, COUNT(*) AS headcount
FROM employee e JOIN subsidiary s ON e.subsidiary = s.id
WHERE e.isinactive = 'F' GROUP BY s.name ORDER BY COUNT(*) DESC;

SELECT s.name AS subsidiary, a.acctnumber, a.fullname,
       TO_CHAR(t.trandate,'YYYY-MM') AS mth, ROUND(SUM(-tal.amount),0) AS amount
FROM transactionaccountingline tal
JOIN transaction t ON tal.transaction = t.id
JOIN transactionline tl ON tal.transaction = tl.transaction AND tal.transactionline = tl.id
JOIN account a ON tal.account = a.id
JOIN subsidiary s ON tl.subsidiary = s.id
WHERE t.posting = 'T' AND a.accttype IN ('Expense','OthExpense') AND s.id IN (1,7)
GROUP BY s.name, a.acctnumber, a.fullname, TO_CHAR(t.trandate,'YYYY-MM')
ORDER BY s.name, TO_CHAR(t.trandate,'YYYY-MM')

Derived metrics (regime math, annualizations, category totals, bridge) computed programmatically from the query outputs above; monthly figures reproduced in §1.