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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Harvesting Opportunity from Performance, Capability, and Cost Structure Enhancement at South American Industrial Goods Manufacturer
Identified specific actionable opportunities (cost, service, and quality) to capitalize on post-merger opportunities. Created plan to capture significant near term and longer term performance, capability, and cost structure enhancements. Management-led execution targeted to result in $2MM in cost, service, and quality savings (on a cost base of $5.5MM).
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Performance Tracking Tools to Help New Management Make Fact-based Decisions at Leading Frozen Mexican Food Manufacturer
Constructed methodology and models to view profitability by customer, product, and channel. Results led new management to refocus product development/growth strategy on profitable products. Management succeeded in doubling revenue of profitable products and private equity owners sold firm to a strategic buyer in 3 years for a 26% compound annual return on investment.
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Creating Product Segmentation and Performing Selected Outsourcing and Cost-Savings Changes at Leading Personal Care Company
Developed a process-defined product segmentation methodology by analyzing the operational and economic structure of the domestic business, identifying $40+ million in savings. Determined reinvestment and outsourcing strategies for key businesses, and trained client resources in the use and maintenance of a custom cost savings tracking system.
