Maximize EBITDA Impact
H&Z specializes in post-transaction procurement strategies that boost EBITDA through tailored cost reduction and effective value engineering initiatives.
Client Challenge
Following acquisition, the new PE owner recognised the potential for value creation through procurement, targeting an immediate EBITDA improvement, more longer-term step-change cost reduction and a need to further develop procurement capability.
H&Z Approach
Post-transaction value creation was delivered in three stages; An immediate, post-transaction Rapid Re-negotiation Program with a focus on price and payment term improvements, delivering immediate cashflow and EBITDA improvement. In parallel, the development and implementation of a comprehensive Value Creation Plan, addressing all spend areas and leveraging strategic sourcing, process optimization and, in particular, product cost optimization through cost & value engineering. Transformation to a new Procurement Target Operating Model, to optimise how procurement engaged with all business functions.
Results
- Rapid Sourcing re-negotiations on payment term & prices with EBITDA and cash impact in Year 1
- A comprehensive Value Creation Plan to deliver > 100 m€
- 300+ “should cost” calculations conducted as basis for fact-based negotiations
- Full Value Potential Plan incl. Savings potentials in commodity groups, product cost optimization and implementation, leading to over > 100 m€ savings
- Cost Value Engineering and Tear Down Workshops for range of products
- New Target Operating Model, including organizational structure, and collaboration models with interface functions
