How good a handle do you have on your cost base? Are you under pressure to improve your EBITDA?
We support our clients to help them get a clear view on their internal and external cost base and work with them to identify sustainable cost savings that can be implemented in order to realise savings and ultimately improve their EBITDA?
Here is an example of when we partnered with a mid-sized pharma client…
With their current PE investors targeting an exit in 2025 and our client capitalising on its market position, the company has grown quickly to €750m in annual revenue, and an EBITDA of ~30%.
Our client required support to identify sustainable internal and external savings opportunities. We were tasked with conducting a company-wide 8-week diagnostic with the aim of identifying savings to offset their base business inflation in their 5-year plan.
We partnered with leaders across the whole group to review the current cost structure and understand any opportunities for optimisation. This review included internal headcount and third-party supplier costs. Our approach consisted of three key phases over the course of the 8-week diagnostic:
1. Current state analysis
2. Opportunity assessment
3. Savings prioritisation
Our review qualified 15% of addressable spend as net real P&L benefit. This will reduce the clients total spend through the implementation of strategic sourcing, operational excellence, workforce optimisation and investment in platforms to improve ways of working. Based on this diagnostic, we have been invited to undertake the implementation phase of the cost optimisation strategy. Savings will be realised over the next 12 months to 5 years.