12% EBITDA growth for a Manufacturing PE PortCo achieved in 3 months
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PROBLEM
A Private Equity company was looking for rapid value creation initiatives for its recently acquired carve-out entity. The company had a decentralized sourcing and procurement team, focused on tactical procurement. The PE firm believed there was no value in strategic sourcing because the buying power of the PortCo had been significantly reduced after the carve out, but they were open to new ideas on sourcing and procurement.
SOLUTION APPROACH
We quickly identified Strategic Sourcing of Direct Materials as an opportunity area based on the age of the existing contracts, the market trends in the sourced commodity feedstocks, and the supplier competitor analysis.
We conducted a 12-week sourcing process of the top 3 commodities, including RFPs and one-on-one negotiations for incumbents and challengers. We ensured new pricing was based on feedstock pricing indices in order to drive price transparency and spend forecast accuracy.
RESULTS
We reduced costs of all 3 key commodities, increasing EBITDA by 12% annually.
The PE company leveraged our results to refinance the company within a year of original purchase at 1.5X original purchase price.
FAQs
Frequently Asked Questions
1. What services do you offer?
We provide supply chain optimization, operational improvement, post-merger integration, value creation, and data-driven advisory services for private equity and mid-sized businesses.
2. Who are your typical clients?
Our clients include private equity firms, portfolio companies, and small-to-medium sized businesses seeking operational efficiency and measurable growth.
3. How quickly can you deliver results?
Depending on the engagement, we provide actionable insights and measurable outcomes in weeks, not months, ensuring rapid value creation.
4. Do you provide post-acquisition support?
Yes, we help with integration, SKU transfers, operational alignment, and strategic execution to meet deal thesis objectives.
5. How do you approach decision-making?
We use data-driven methods, rigorous analytics, and evidence-based frameworks to replace assumptions with actionable, value-maximizing decisions.