Caso di Studio
Industry-wide slow growth threatened the health of our client's portfolio company, a maker of home furnishings. Bain introduced initiatives to improve penetration of more profitable small accounts and contract customers, redesign the core product and selectively raise prices. EBITDA increased 50% within three years; when the company was sold, it earned a five-fold return on invested capital.
The client's newly acquired portfolio company is a leading manufacturer in a concentrated industry that formerly earned high margins selling to a fragmented customer base. But industry growth is beginning to slow and customers are experiencing financial pressures that threaten to further curb future growth.
Shortly following acquisition by private equity investors, Bain initiated a 100-day blueprinting process to diagnose the company's competitive position, prioritize opportunities to improve performance, and develop a detailed road map to guide implementation.
Introduce a phased sequence of parallel initiatives to:
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.