Private Equity Firm Retains TriVista to Provide Quality of Operations™ Due Diligence on $500M CPG Company – TriVista Identifies $10.2M EBITDA Savings

The Challenge

A middle market Private Equity firm seeking to acquire a $500M manufacturer and distributor of specialty apparel products sold into various B2B and Consumer end markets. TriVista was retained to provide Quality of Operations™ Due Diligence consulting support to qualify and quantify EBITDA and working capital improvement opportunities that existed in the business.

Our Approach

• Site Visits and assessments of five (5) locations across the U.S.
• Assessment of Sales, Inventory, and Operations Planning (SIOP)
• Evaluation of key operational staff members and management team
• Analysis of sourcing and procurement, including gaps existing within supply chain
• In depth review of manufacturing & quality including, Lean initiatives, operational efficiency, plant flow, and safety
• Deep dive examination of distribution and logistics including current state footprint and national shipping routes in connection with on-time delivery / high sale locations
• Assessment of the company’s recent acquisition roll up as well as implementation plans for acquisitions in pipeline

The Results

TriVista identified $10.2M in EBITDA savings as well as $32M in working capital improvements. The savings stemmed from:

• Procurement cost reductions across business units
• Strategic sourcing initiatives / Asian supply management implementation
• Companywide labor utilization improvement
• Inventory reduction and turns improvement