Consumer & Industrial Products
revenue growth through pricing and cost-to-serve optimization
cost reduction through fleet and footprint optimization strategy
cost reduction through back-office consolidation and revised account management strategy
Our client, a leading distributor of lubricant, fuel, and diesel exhaust fluid for industrial and commercial businesses, wanted to make sure potential buyers could see their capacity to improve profitability. They had more than 10 key performance improvement initiatives in motion, including reducing fleet size and consolidating facilities. They knew quantifying the impact of these initiatives on financial statements was a priority to maximize deal value—but it proved to be challenging.
We know that data and insight instill confidence, so our team came ready with a data-driven approach—the same type of approach we use to help consumer and industrial products companies unlock value by moving from traditional to digital operating models. Our team of industry and M&A experts leveraged West Monroe’s advanced analytical capabilities and tools—such as Alteryx — to analyze current improvement initiatives in detail, using transactional and operational data to calculate the impact and translate it into tangible estimates of future financial value:
We then equipped the client’s management team with tactical guidance for delivering the promised value. We produced a roadmap and project charters, recommended a governance structure to oversee change, helped the company set up a value management office, and provided tracking tools and templates to measure success and incorporate it into financial forecasts.
In just two months, the client received the insight it needed to show potential investors that it has a tangible performance improvement opportunity: $50 million in EBITDA, using our recommendations around margin maintenance, footprint optimization, and commercial effectiveness. Our approach was instrumental in establishing the company’s value-creation potential.
The client’s management team is also now better equipped than before to deliver the performance improvement potential that was factored into the future forecasted EBITDA plans. Our work left executives with a plan for prioritizing limited tools, capabilities, and limited resources to manage change.