What it is, when it makes sense
There are several reasons why chemical companies may need to extract more EBITDA or cash out of their operations: they may be preparing for a change of ownership and lift the selling price, they may need to finance new investments or new businesses, or else they may quickly go back to profitability as their credit lines are drying out. In all this cases it is key to have a robust perspective at high level of where the key opportunities are – based on deep understanding of the company and what peers do and can do – to be able to focus and create value within limited time. Our „Wall to wall EBITDA / cash extraction“ programs aim at identifying those opportunities, sketching a feasible realization plan, and supporting an organization capturing the value quickly without jeopardizing the business.
What you get
Our typical „EBITDA/ cash extraction“ program delivers:
- Map of EBITDA/cash opportunities, i.e. the list of potential savings / margin / cash generating sources from every item of the financial statements, based on our quick business diagnostics (financial statements analysis, peer benchmarking, in-depth management interviews, functional deep-dives).
- Prioritization alternatives & roadmap, e. the ranking of opportunities based on different criteria such as return on investment, costs, ability to implement, sustainability, risk, as well as a potential sequencing of implementation of the different realization projects.
- Program management of the realization phase, i.e. the operationalization of each opportunities into actionable projects, the progress tracking, and the change managment involved.
- Ad-hoc expertise on selected projects– where necessary, i.e. the subject-matter input on strategic questions such as portfolio decisions, manufacturing or logistics footprint, customer churn management, and alike.
How we work
This type of engagements typically go over 1 to 2 years. The staff is typically:
- One senior project/program manager with experience in such wall-to-wall programs
- Two-three experts for the business processes in scope (e.g., sales & marketing, manufacturing, maintenance, procurement, supply chain management, etc.)
- One-two change management experts, where necessary.
Given the high measurability of the results of these engagements, we often negotiate success-oriented remuneration schemes that allow our clients to share risks and benefits out of such a program and allow us to co-steer the programs as entrepreneurs.