Strategy Development for a new purchase by private equity investors

Strategy Development for a new purchase by private equity investors

Mar 7, 2023 | Service Industry

Strategy and Operations Improvement: A Canadian leader in dairy farm equipment

 

ISSUE

The company was purchased by private equity and the leadership change that resulted required strategic and business planning support. The company was transformed from an entrepreneur-centric business to a more process-driven, performance driven organization with objectives, accountability and forward-looking targets. The changes resulted in margin growth of 12% and created a more robust operating structure.

 

RESULT

  • The goal was to keep entrepreneurial urgency while improving planning and reporting
  • Financial and market analysis focused on key growth opportunities in sales including improved sales targeting, materials and training
  • Developed financial model, sales and service targets to create a data driven operational model and review process to project financial results and manage accordingly
  • Performance criteria now shared and tracked by senior management and the board, resulting in increased accountability
  • Resulted in year over year growth of 12% in a stable market
Implementing Lean Practices In a Legal Environment

Implementing Lean Practices In a Legal Environment

Mar 7, 2023 | Service Industry

Improve Cash Flow: A leading regional law firm

 

ISSUE

The client sought to improve cash flow generated by the firm. The goal was to reduce work-in-progress, speed up accounts receivable collection, minimize unbilled disbursements and maximize billable hours

 

RESULT

  • Analyzed sources of WIP, AR and unbilled expenses and their cost to prioritize improvement opportunities
  • Improved performance metric reporting to improve oversight, highlight issues, and increase accountability in each area
  • Developed new policies to increase speed of billing, reduce WIP and track unbilled expenses 
  • Implemented alternative 3rd party financing alternatives for key clients that  reduced AR and WIP and immediately improved cash flow
  • Approximately 25% improvement in cash flow due to client-financed family law, better tracking of overdue payments, new policies and regular oversight and management.
  • Project return was about 3:1
Margin Improvement and Growth: Industrial Services Provider

Margin Improvement and Growth: Industrial Services Provider

Oct 12, 2022 | Service Industry

Margin and revenue improvement program: A leading regional industrial service company

 

ISSUE

The client experienced a major COVID-related contraction that reduced its revenue but improved operating margins. Our goal was to grow again while maintaining operating margins at the new level by changing how clients were services, and focusing on higher margin work.

 

RESULT

  • Financial analysis revealed opportunities to assign its highly technical workforce more efficiently and assign low-margin work to low-cost resources
  • Enhanced training capabilities developed to improve and expand its low-cost workforce resources
  • Improved apprentice program and  support to become the employer of choice and expand the pool of lower cost technicians
  • Prioritized customers by contribution & margin and developed a sales & marketing strategy that targeted specific types of high-margin narrower clients.
  • The client achieved their goal of growth while maintaining a similar cost structure, and reduced unprofitable clients and added higher value-add clients.
  • Client experienced a 4:1 return on investment wit this work.