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Publish Date

May 14, 2019

Growing into Disaster (Part I of a Series on Cost Optimization)

Markus Lahrkamp, Managing Director Michael Beetz, Managing Director

Service / Industry: Cost Optimization

Alvarez & Marsal (A&M) is introducing a three-part series on cost optimization. The first release of this series entitled “Growing into Disaster,” is written for investors in portfolio companies that have historically increased value through revenue growth but are now delivering lower levels of profitability and facing challenges. Private equity investors often find themselves in situations where portfolio companies need to realize meaningful and sustainable improvements in cost structure. Companies in these situations cannot simply cut their way to efficiency – they need to change how they operate.

We are not saying don’t grow, we are saying grow smartly. Expansion and growth lead to increases in complexity, and with complexity comes additional cost. Without an efficient cost structure, continued prioritization of growth over efficiency can lead to situations where urgent change is needed to avoid “growing into disaster.”


Markus Lahrkamp

Markus Lahrkamp is a Managing Director with Alvarez & Marsal Private Equity Performance Improvement in New York. He also leads engagements as part of the A&M Rapid Results Program™.

Michael Beetz

Michael Beetz is a Managing Director with Alvarez & Marsal’s Private Equity Performance Improvement Group in San Francisco. He specializes in cost optimization and performance improvement and brings extensive experience with situations requiring significant improvements in cost structure and profitability.

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