An operational improvement plan can deliver significant tangible financial and operational benefits.
Our team of experts develop and implement margin improvement, cash flow initiatives and cost reduction opportunities for companies across a wide range of industries. Our team is equally well able to develop and implement such plans for healthy companies as those suffering from stress or distress.
Our approach is centred on the identification and delivery of sustainable benefits, and our team helps clients drive operational change within their business. Typical areas of focus include:
- Identification and implementation of EBITDA and cash improvement initiatives
- Working capital improvement plans
- Assessment of cost reduction opportunities including outsourcing and shared services options and the right-sizing of overheads
- Efficient manufacturing processes that consider optimal staffing levels and footprint rationalisation
- Capex and investment reviews
- Supply chain efficiency and processes
While our assignments are bespoke and tailored to fit each company’s unique circumstances, we typically adopt a two-phase approach to our assignments. The first phase, a rapid diagnostic phase performed over a one- to three-week period, seeks to identify, quantify and prioritise opportunities while the second phase, the implementation phase, focuses on accelerated delivery of the identified opportunities.
Within the EMEA region and beyond, our team has an impressive track record of identifying and supporting the successful delivery of operational improvement opportunities across a range of industries.
Our team has considerable experience leading and implementing projects that unlock cash tied up in working capital to either reduce funding requirements or exploit investment opportunities.
We advise and assist management teams in implementing actions to embed sustainable cash flow and working capital improvements while ensuring ownership remains within the business so that benefits are sustained post-completion of the project.
In our experience, cash and working capital management is not just a “finance” issue, but requires involvement from across the business, for example sales forecasting and production planning to implement improvement initiatives.
Key processes we focus on as sources of working capital improvement are:
- Order to cash time compression
- Purchase to pay cycle reviews
- Supplier and customer terms reviews
- Capex reviews
- Treasury policies and procedures, for example cash pooling and optimisation of global cash and financial covenant compliance reviews
Supply chain typically accounts for the vast majority of costs to a business; therefore efficiency improvements to the supply chain can deliver meaningful benefits to overall profitability and can create significant commercial advantage.
Our team focuses on implementing systems and processes to improve the contribution the supply chain makes to the overall profitability of a business. Typical areas of focus are:
- Sourcing and procurement processes
- Supply chain operations
- Product and life cycle management
- Logistics and distribution procedures
Our post-merger integration services provide clients with the advice and tools to successfully integrate an acquired business and to create and capture value from a transaction. In our experience, clear strategic objectives, detailed implementation plans, effective communications and a structured and disciplined approach are all prerequisites to delivering maximum value from integration.
Our approach focuses on preserving and identifying opportunities to create value. Our services typically include:
- Creating the integration strategy and approach to unlock value from the transaction
- Developing the detailed implementation plans
- Ensuring cost and revenue targets are translated into integration plans that can be tracked and delivered post-deal
- Managing people issues and programme communication
- Preparation for “Day 1” to quickly take control of the new business, combining with the existing business and minimising disruption to the business
Our team introduces structure and practices that provide leadership, oversight and control to guide integration programmes to successful conclusions.
Our team helps clients determine the optimal way to separate part of a business or dispose of an entity from a group of companies. We provide operational and financial analysis expertise coupled with programme management skills to support our clients in maximising value from a carve-out.
Our team assists vendors’ clients in preparing for and implementing for a sale via:
- Creation of separation plans that are capable of standing up to third-party diligence, incorporating:
- Development of a stand alone operating model for the carve-out entity
- Identification of intercompany dependencies
- Development and implementation of transitional services agreements between the vendor and carve-out entity
- Identification of separation risks in a carve-out plan
- Formulation of detailed implementation plans enabling effective management of the separation
- Preparation of carve-out financial statements, taking into account the optimum way these statements should be presented
- Development of a clear financial plan of how the remaining business will operate after divestment
Our team has a breadth of carve-out experience to ensure “Day 1” risks are managed, thereby minimising business disruption and allowing management to focus on business as usual.
Our team understands both buyer and seller perspectives and are equally well placed to review management’s separation plans on behalf of potential buyers Our carve-out diligence services assess the robustness of management’s separation plans including “Day 1” readiness and transitional arrangements on behalf of potential buyers. For further details on our due diligence services, please see the attached links Operational Due Diligence and Financial Due Diligence.
We provide interim management services to support delivery of our operations improvement, working capital, supply chain, integration and carve-out services, should this be required.
Experienced FTI Consulting professionals are able to fill the void when client companies face leadership, financial or operational challenges. In a moment’s notice, these experienced and credentialed senior executives can assume management or board roles, providing the leadership and strategic decision-making ability to maintain momentum, establish corporate priorities, build morale and provide critical continuity. FTI Consulting professionals serve in the following roles: chief executive officer, chief operating officer, chief financial officer, chief restructuring officer, financial controller and treasurer. FTI Consulting also has the capability to provide additional resources as needed.
We place a high priority on dedicating teams of professionals who have served together on multiple engagements and have industry-specific experience to ensure quick understanding of the operational, competitive and regulatory landscape.
Interim professionals may also utilise specialised FTI Consulting experts in accounting, operations improvement, turnaround or insolvency to solve specific organisational challenges.