EBITDA Improvement X-Ray

In recent years, pulling operational levers at portfolio companies has become a key task for many private equity firms. Prioritizing the right levers and executing a pinpointed and speedy but impactful program are the most typical challenges our clients face in this context.

The new Oliver Wyman publication “EBITDA Improvement X-Ray” describes how to address these challenges. The four modules of the EBITDA Improvement X-Ray are designed for private equity portfolio companies in the manufacturing sector and provide a fast and structured assessment of approximately 90 percent of total cost by leveraging Oliver Wyman´s global expertise.

EBITDA Improvement X-Ray Framework: Four-Step Approach

The EBITDA Improvement X-Ray capability is bundled in four modules:

Sourcing X-Ray
Plant X-Ray
Product Cost X-Ray
Overhead X-Ray

These four modules help to quickly and systematically unveil significant profitability potential, ready for prioritization in an action plan.

Each of the modules follows a proven four-step approach. Thanks to a modular design, each EBITDA Improvement X-Ray module can be deployed independently of the others, depending on the value creation hypothesis to be tested for a specific portfolio asset.