Benefits of Cost Takeout and Turnaround

  • Quick Wins and Long-Term Improvements: Achieve immediate savings while setting up for sustained financial improvement.

 

  • Improved EBITDA Performance: Boost profitability by focusing on key levers such as organizational design and 3rd party spend.

 

  • Enhanced Liquidity: Optimize working capital management to improve cash flow and financial stability.
Benefits of Cost Takeout and Turnaround
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How We Work with Cost Takeout and Turnaround

How We Work

  • Comprehensive assessment of the company’s financial and operational health.
  • Identify quick-win opportunities and prioritize longer-term value creation initiatives.
  • Leverage the Spend Cube to analyze vendor and procurement costs to uncover savings.
  • Implement and track cost-saving initiatives, providing ongoing reporting and accountability.
Key Results
  • $20M in additional lender funding secured.
  • Identified $5M+ EBITDA improvements through zero-based budgeting.
  • Extended runway to negotiate additional liquidity, preventing bankruptcy.
SITUATION
  • Clients faced liquidity issues, forecasting cash generation that failed to materialize.
  • Revolver was fully drawn; client suspected cash shortfall.
  • DEBITDA margin of 5% was below comparables, and SG&A increased by $14M since 2019.
What We Did
  • Developed a cash flow forecast revealing $20M in cash needs.
  • Identified liquidity gaps and created initiatives to avoid bankruptcy.
  • Delivered a 3-statement model, zero-based budget, and $5M+ EBITDA improvements.