Situation
Our client, a private-equity-owned facility services company, stood as a key player in the Scandinavian market with a focus on acquisition-driven growth. To sustain and foster this growth, it became imperative to solidify a stable and robust EBITDA. The primary objective of the turnaround project was to elevate the EBITDA margin swiftly by pinpointing and capitalising on immediate opportunities.
Approach
Through quantitative and qualitative analyses, Valcon supported the company in identifying and qualifying a catalogue of EBITDA improvement initiatives, developing detailed business cases against the expected run rate and prioritising initiatives based on business cases and expected impact date.
Valcon conducted a fast and efficient analysis to identify and prioritise the root causes of reduced profitability. To meet the owner’s demand for short-term sustained EBITDA margin improvements, Valcon reviewed and optimised the current customer base, including the elimination of unprofitable contracts. We also developed a methodology for a continuous contract improvement process, including creating financial transparency and set up KPIs to support the newly established PMO office.
All activities were conducted in close collaboration with the private equity fund to ensure data quality, buy-in and implementation ownership.
Results
The turnaround project provided financial transparency and initiated a concrete implementation plan for both short- and long-term improvements to the EBITDA margin.
