Cost Optimization
Helping Companies Change How They
Operate to Optimize the Cost Structure
A&M can help realize meaningful and sustainable improvements in cost structure and EBITDA creation. By bringing transparency, reducing complexity and changing how the business operates, A&M’s approach has delivered substantial improvements for portfolio companies in these situations, and consistently strong return on consulting for our private equity clients.
Addressing Cost Structure
Improvements Through:
Margin & Cost Transparency
Current margin profiles and breakdown of
labor and non-labor costs must be clearly
understood via transparent baseline.
Complexity Reduction
Reducing complexity in the business provides
a clear trigger for simplifying the organization
and cost structure.
Organizational Restructuring
Headcount reductions under current structure
are not sufficient when the organization needs
to change, not just cut.
Support Function Efficiency
Streamlined organizations typically requires
less support to operate, e.g., back office and
other similar functions.
Non-Labor Spending
Non-labor cost reductions provide near-term cash
and EBITDA lift without impacting headcount.
Case Study
Client
$1BIndustrial Fibers Company
Over 20 years of year-over-year revenue increases and growing at all costs, the company experienced a significant economic slowdown in their specific markets.
Role
-
Developed scalable platforms
across major lines of business -
Simplified the organization
structure with a focus on
efficiency and accountability -
Overhauled sales force to
optimize staffing levels, and
incentivized sales to balance
volume and contribution margin
Impact
$30MEBITDA improvement
Successful sale of
the business
Meet Our
Practice Leader
