Cost Assessment/ Reduction
We bring our unique mix of financial and operational capabilities and our unwavering focus on financial results to ensure that our clients have clarity on the company’s cost structure and opportunities and that operations improvement initiatives quickly show up in the company’s financial statement. We: rapidly decipher and break down the company’s cost structure leveraging financial and operational data as well as site visits and management discussions; identify key operational levers and their impact on cost; and quantify cost reduction opportunities associated with operations improvement initiatives. We ensure that any cost reductions are sustainable and our clients benefit from them not only during their ownership but also at exit in increased valuation.
Establishing Efficient Organization Structure And Processes To Drive $100MM In EBITDA Uplift
Conducted 12-week operations diagnostic to identify opportunities to streamline and reduce cost of client’s operations. To this end, Gotham: redesigned the corporate organization; surveyed 300+ front-line employees to understand their activities; visited multiple local markets and toured homes; mapped all processes front-to-back; and conducted deep-dive analyses of the client's operational performance to establish and quantify savings opportunities. Gotham identified opportunities to increase the client’s EBITDA by $100MM and developed project charters, role-specific KPIS, and a technology plan to jumpstart the capture of identified opportunities. The client launched the implementation effort immediately, with organizational restructuring implemented within 4 weeks.
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Determining the Right Fixed Cost Structure and Capturing Overhead and G&A Opportunities at Global Industrial Goods Manufacturer
Worked with senior business unit management to develop and implement manufacturing overhead and G&A savings recommendations across NA network. Established a zero-based organizational structure and cross-business unit management efficiency metrics for assessment purposes. First-year run-rate savings were $8.1MM, an additional $2.1MM of savings were targeted.
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Establishing Cost-focused Operational Processes to Enable Rapid Cost Savings Capture at Premium Personal Care Products Company
Identified $9-12.5MM in cost reduction opportunities, which required addressing CosmeticCo's critical gaps in operational basics, which had become exacerbated by fast growth, and its limited understanding of/focus on actual costs. Within 4 months, over $7MM in cost reduction opportunites confirmed or detailed, with $2.5MM already captured on run-rate basis. CosmeticCo continues to implement detailed-out changes to complete capture of near-term savings and then pursue longer-term opportunities.
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Dissecting Job Profitability and Redesigning Commission Structure to Improve EBITDA Margins at Professional Staffing Company
Conducted a 4-week operations assessment to establish levers to turn around the company’s EBITDA margin performance: 1) dissected the company’s cost and job performance, by cleaning/reconciling raw data from disjointed staffing and ERP software systems, mapping detailed general ledger costs to jobs, and creating job profitability profiles; 2) redesigned sales and recruiting commission structure for a 25% improvement in EBITDA; and 3) developed robust KPI-based reports required for managing cost and profitability moving forward.
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Rapidly Validating Margin Improvement Opportunities and Assessing Capacity/CapEx Risk at Testing Services Provider
Conducted 2-week operational due diligence to validate margin improvement opportunities and assess capacity/CapEx risk. Gotham visited 7 facilities and conducted full-day operations review with management to understand operations management approach/processes and visions/plans moving forward. To fill gaps in this data poor situation, we performed various in-depth analyses – recasting labor cost structure, analyzing job-level data to understand profitability, building a bottom-up labor utilization and fixed cost model to project margins with revenue growth, etc. Gotham’s due diligence work enabled our client to move forward with confidence and successfully acquire target in a proprietary deal.
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Rapidly Pinning Down Capacity/CapEx, Manufacturing Cost, and Distribution Situation and Opportunities at Leading Dry Ice Manufacturer
Conducted 2-week operational due diligence to pin down capacity and CapEx situation, and to identify margin improvement opportunities in manufacturing, distribution, and branch operations ahead of a competitive auction bid. Created plant-specific profiles of 150+ pieces of production equipment and determined target had ample capacity for growth with minimal replacement CapEx risk. Analyzed and reconciled financial data from the target’s ~100 P&Ls and reallocated costs to establish true operational costs and production and distribution cost benchmarks across plants, branches, and routes and identified up to $6MM in margin improvement opportunities through disciplined distribution and pricing practices. Gotham’s due diligence enabled our client to move forward with a competitive bid.
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