Industry: Private Equity Location: UK

Our Private Equity and M&A Practice

In the world of private equity backed M&A activity, balancing and meeting the expectations of many stakeholders is paramount. These expectations include securing profitable growth for the companies that are acquiring or merged whether organically or through a buy and build strategy; and creating an increase in EBITDA to deliver a multiple return to the fund investors.

Reducing fixed and variable costs associated with third party spending contribute directly to EBITDA improvement to then either form part of the multiple on exit or be re-invested into growth activities. Appropriate actions can reduce costs quickly without cutting too close, too much or too fast, meaning that savings are sustainable over the long term.

Odesma has a strong and extensive track record of success in delivering operational efficiency improvements and realising opportunities for cost reduction in third party spending and / or supply chain fixed costs across multiple P/E assets over the last 5 years.

Our teams work within our clients to identify and then realise operational efficiency opportunities in the following areas:

1

Pre transaction assessment

Creating a holistic view of all fixed and variable third party costs using our experience and cost comparators; from our savings playbook gleaned across many efficiency projects; to create an efficiency blueprint.

2

Pre transaction due diligence

Using data released within the due diligence materials to validate the cost reduction and efficiency opportunities creating clear, actionable plans for implementation.

3

Post transaction implementation of cost reduction blueprint

We combine the experience of the Odesma leadership team and our network of associates to deliver the opportunity. Our teams work within the client business and do the work of delivery.

4

Post transaction supply base management

For divestment or acquisition, delivering supplier ecosystems required for continuity under any TSA arrangements.

5

Ongoing development and support

Creating procurement, cost and supplier management support policies and capabilities to ensure that savings generated are sustained and improved in the ‘business as usual’ environment.

Sustainable fixed and variable cost reduction delivered quickly and underwritten by experience.