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 to re-set the cost structure.
Getting the right cost structure in place today is a “no regrets” decision. If the top-line dips, the business can take it. And, if the top-line grows, the more efficient cost structure will deliver increased profitability, and growth will be accretive to the platform. A&M PEPI’s Cost Optimization service offering is a proven solution for delivering meaningful, step-change improvements in cost structure.
A&M’s Cost Optimization delivers substantial improvements for portfolio companies in these situations, and consistently strong return on consulting for our private equity clients.
Industrial Fibers Company
Over 20 years of year-over-year revenue increases and growing at all costs, the company experienced a significant economic slowdown in their specific markets.
Successful sale of the business