~$30M
Total value improvement identified
A Comprehensive Operational Analysis to Maximize Exit Value
A private equity firm engaged EFESO to prepare a foodservice company for potential sale by identifying value improvement opportunities across three facilities. Together, we conducted a six-week operational analysis examining manufacturing operations, procurement and maintenance functions. The comprehensive assessment uncovered approximately $30 million in improvement opportunities, with 80% capturable within six months.
Food & Beverage
Private Equity
Cost and Value Engineering
Manufacturing
Operations Strategy and Transformation
Procurement
Transactions and Turnaround
Our Client
A leading US foodservice company specializing in fruit and flavor solutions, including coffee flavors, smoothies and juice toppings. It serves restaurant chains, foodservice distributors and healthcare institutions across the American market. As a portfolio company of a private equity fund, with approximately $7 billion in assets under management, the company had been held for four to five years before preparing for exit.
The Challenge
The private equity firm needed to maximize exit value while proactively identifying potential risks before entering the sale process. The engagement faced several critical constraints:
- High baseline performance complexity – As one of the largest and most profitable companies in the portfolio, finding significant improvement levers required deep operational analysis beyond surface-level assessments
- Compressed timeline requirements – Only six weeks were available to assess three geographically dispersed facilities, with varying production capacities
- Dual mandate balance – There was a need to identify value improvement opportunities for negotiation leverage, while simultaneously uncovering potential “value leaks” that could impact valuation. This required objective fact-based assessments of asset conditions and operational risks
Real Results Achieved Together
The operational analysis delivered a comprehensive roadmap for value creation across manufacturing, procurement and maintenance functions. Working with in-house teams, we identified actionable improvements spanning operational efficiency, strategic sourcing and asset optimization.
+30%
Average throughput increase
~$21M
From operational enhancements
Transformation Impact
- Identified OEE improvement opportunities through optimized CIP, setup and changeover processes targeting high-margin products
- Uncovered procurement savings through better contract usage and supplier consolidation strategies
- Revealed maintenance culture shift opportunity, from reactive to preventive practices, reducing lost production time
Our Approach
EFESO conducted a comprehensive six-week operational analysis examining end-to-end processes from raw material intake to final product shipment. The assessment covered over 200 hours of direct observation and analysis across three main facilities.
The scope encompassed manufacturing operations including layout, material flow, capacity bottlenecks, value-added versus non-value-added activities, OEE by line, root causes of losses, scrap levels and sanitation processes. At the corporate level, we analyzed procurement spend optimization and strategic sourcing opportunities that were crucial for margin improvement in this low-margin business.
Our repair/reliability and maintenance assessment focused on opportunities to optimize overall equipment efficiency, maximize return on capital, reduce downtime and improve asset performance. The highly reactive maintenance culture, with 74% reactive maintenance causing up to 10% lost production time, presented clear improvement opportunities.
The engagement structure prioritized quantifiable value with an actionable implementation plan, providing potential investors with tangible operational improvements impacting EBITDA and cash flow.
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Facing Similar Private Equity Portfolio Challenges?
- Preparing portfolio companies for exit while uncovering hidden operational value
- Transforming reactive maintenance cultures into proactive asset optimization systems
- Building fact-based operational roadmaps that maximize negotiation leverage
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