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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Properly Valuing Diverse Manufacturing Operations at Fabricated Metal Products Holding Company
Analyzed operations and cost structure of 5 independent companies engaged in forging, casting, and stamping operations. Deciphered cost structure, reviewed manufacturing operations, and analyzed material spend. Identified $7-15MM of labor, overhead, and material cost reduction opportunities in the largest of the companies, which was engaged in steel casting. Identified another $6-9MM in scheduling, labor, efficiency, and consolidation opportunities for the remaining companies. After delayed acquisition, now helping to capture opportunities.
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Finding and Valuing Cost Reduction Opportunities at Global Tier 2 Automotive Components Supplier
Conducted opportunity assessment at Tier 2 Automotive Parts supplier with manufacturing locations in 4 countries. Identified $6-9MM in short-term and $27-37MM in longer-term cost reduction opportunities. Near-term opportunities included improving efficiency of US operations and re-sourcing materials and components from lower cost locations. Longer-term opportunities involved closing a European facility, migrating labor-intensive products from the US to Mexico facility, and building up a Chinese JV to supply all Asia product needs. Identified opportunities far exceeded management plan.
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Identifying and Quantifying Potential Network and Standalone Improvements at Specialty Jewelry Manufacturer and Printer
Conducted diagnostic to identify areas of opportunity and potential value of operational initiatives. Identified $6-8MM opportunities in jewelry manufacturing and $4-6MM in book printing via application of lean manufacturing, automation, improved customer service, and network optimization. Established a 100-day plan to jump start the opportunity capture. Post-acquisition, using 100-day plan, management able to migrate manufacturing to lower cost countries, outsource product finishing, and close an underperforming facility, leading to the capture of the outlined savings within 12 months.
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