Success Story - "Purchasing
Consolidation"
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Company Description
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Leading
private equity investment firm with over $8B in assets under management,
currently invested in a portfolio of over 40 companies.
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Company Situation
and Problem |
Portfolio companies did not communicate or cooperate
on any level, including procurement, while buying many common goods and
services, thus paying higher prices individually than they might on a
consolidated basis.
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| Paladin Actions & Recommendations |
Paladin and Client secured cooperation between 25 portfolio companies, then
gathered spend data from each company, determined the business needs of each
individual business, identified and consolidated the purchase volume of
common spend categories and commodities, negotiated leveraged deals that
would survive future divestitures or acquisitions, and helped implement the
new contracts
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| Client Results |
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Paladin secured savings in 20 spend categories totaling
over $15 Million, or approximately 20% of the companies’ total spend. |
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Many of the companies enjoyed the cost reductions. |
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Moreover, using a valuation ratio of 10 to 1, the Private
Equity firm realized an improvement in market valuation of $150 Million. |
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Significant Savings and
Increased Shareholder Value |
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