EBITDA Performance Improvement Case Study

Reaching Transformation Targets

Manufacturing professional using a tablet while walking through a production facility, representing operational performance improvement.

At a glance

A private equity-owned construction industry materials fabricator and installer realized more than $20 million in EBITDA impact.

Crowe helped this construction industry materials client reach transformation targets through facility consolidation, organizational alignment, operational improvements, and pricing optimization.

Client

A construction industry materials installer with operations in multiple states and hundreds of locations wanted to increase its impact.

Crowe solutions used

Performance improvement services

More than $20 million in EBITDA impact

Crowe helped the client achieve measurable EBITDA impact through operational excellence, organizational structure improvements, and selling, general, and administrative (SG&A) expense optimization.

More than $50 million in price coverage

Crowe helped the client implement a structured pricing strategy that expanded price coverage and improved pricing execution.

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Challenge details

The company, which grew from a regionally based business to a private equity platform with several hundred locations, sought to take advantage of its new national scale to reach a multimillion-dollar EBITDA transformation target.

To reach its EBITDA transformation target, the company needed help with the integration and SG&A optimization of corporate and local markets, footprint rationalization for overlapping markets, core operational improvement initiatives, and pricing optimization.

How Crowe helped

Crowe performance improvement specialists managed the transformation process and executed the synergy plan across the organization. They assisted with facility consolidation, organizational alignment, warranty reduction, field labor improvements, and pricing optimization.

Integration: Facility consolidation and organizational alignment

Our team worked with the client to:

Analyze the company’s footprint within each region and then create a prioritized list of facility rationalization opportunities
Develop detailed financial models for regional consolidation
Facilitate all requirements to close a number of facilities and acted as the single point of contact for contractors and regional leaders

Operational improvements: Warranty reduction and field labor improvements

Our team worked with the client to:

Create Microsoft Power BI™ dashboards that provide real-time visibility to margin leakage and actionable root causes for warranty and rework
Implement a three-tiered accountability process to increase data visibility and drive operational improvements
Facilitate several facility kaizen events focused on continuous improvement to develop a prioritized action plan to reduce margin leakage
Deliver a Power BI software field management dashboard to give leadership visibility to field manager utilization

Pricing optimization

Our team worked with the client to:

Develop and implement a new Microsoft™ based tool for the entire price action life cycle: target setting, negotiation, acceptance, contract, validation
Establish an overall price effectiveness metric to capture individual performance
Train account executives, sales support team members, revenue assurance personnel, and regional champions
Assist revenue assurance teams to migrate all price actions to the new price tracker system and help with proper revenue forecasting

The Crowe performance improvement team helped the company realize an EBITDA impact of more than $20 million by helping implement operational best practices, organizational structure improvements, and facilities and SGA expenses optimization.

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Contact our performance improvement team

Improving business performance requires investing in and implementing the right strategies, technologies, and processes throughout your company at the right time. Contact our team to see how we can help with your performance improvement needs.