TriVista Identifies $4M in Consolidation Savings and $1.6M of EBITDA Expansion Opportunities

The Challenge

A $1B Private Equity Group was considering the possible divestiture of a $200M converting equipment manufacturer. The private equity firm hired TriVista to conduct a sell-side Quality of Operations™ Due Diligence with a focus on evaluating and opining on current operational processes and protocols, assessment of identified continuous improvement initiatives, and identification of incremental cost and process improvement initiatives.

Our Approach

• Conducted a site assessment review of twelve manufacturing sites
• Reviewed and assessed management’s proposed continuous improvement projects, and projects currently underway
• Identified additional EBITDA expansion opportunities via footprint rationalization, procurement and manufacturing overhead optimization

The Results

The result was a plan that identified:

• Significant opportunity to implement a consolidation plan resulting in $4M+ in potential savings
• A 2% reduction in annual sourcing and procurement spend ($1.6M EBITDA Impact)
• Opportunity to restructure the organization to drive standardization, sharing of best practices and enterprise-wide cost management/optimization
• Improved labor costs by 5%, and expanded capacity to lessen the burden on hiring additional operators