$2.5M+
Procurement savings secured
Transforming Operational Excellence for a Private Equity Exit
A private equity firm engaged EFESO to unlock operational value for an instrument manufacturer before its sale. Together, we identified and captured procurement savings, exceeding initial targets by 67%. The transformation delivered immediate EBITDA improvements while positioning the manufacturer for a successful exit.
Industrial Manufacturing
Private Equity
Cost and Value Engineering
Manufacturing
Negotiation & Procurement Management
Operations Strategy and Transformation
Procurement
Supplier Value Stream Optimization
Transactions and Turnaround
Our Client
The company designs and manufactures high-performance instruments with proprietary software for characterizing particles, powders and porous materials. It primarily serves industrial technology markets, which account for 64% of revenues, with clean technology markets contributing 36%. Following its purchase by a private equity firm, the company has expanded into new markets and upgraded its commercial capabilities.
The Challenge
The private equity firm recognized untapped operational potential despite already making significant commercial improvements during its ownership. Key operational gaps included:
- No dedicated procurement function – Strategic sourcing lacked professional management across electronics, PCBs, stainless steel fittings, glass components, wiring, metals, bulbs and sensors
- Manufacturing inefficiencies – Assembly operations showed that up to 72% of time was being spent on non-value-added activities, with limited use of lean processes
- Inventory management gaps – Opportunities existed to reduce inventory levels and improve management practices across the supply chain
Real Results Achieved Together
The operational review and implementation delivered transformational improvements across procurement and manufacturing efficiency. Working directly with suppliers and operations teams, we secured contractually locked-in savings that exceeded initial targets.
30-57%
Total EBITDA improvement potential
67%
Savings exceeded target
Transformation Impact
- Delivered tangible, contractually locked-in financial improvements beyond initial recommendations
- Enabled more attractive sale process with operational improvements
- Contributed directly to successful company sale at strong valuation
Our Approach
The analysis was completed over three to four weeks, organized into workstreams covering strategic sourcing, labor productivity, manufacturing efficiency and inventory reduction.
We prioritized procurement implementation over six months through biweekly updates.
Our hands-on approach included identifying suppliers for targeted categories, obtaining NDAs and RFQs from 14 suppliers, conducting competitive negotiations and benchmarking savings by category. We directly engaged with suppliers, negotiated terms and secured new contracts. The deliverables became a key component of negotiations with the company’s financial advisor. This case stands out because we not only identified opportunities but also supported implementation, delivering more savings than initially promised.
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Facing Similar Private Equity Operational Challenges?
- Preparing portfolio companies for exit with untapped operational value
- Transforming procurement from cost center to value driver
- Building operational excellence capabilities that enhance valuation
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