A mid-market PE fund engaged A&M to create meaningful exit value through portfolio leveraged sourcing. A&M analyzed over $1.4B in portfolio spend to identify attractive cross portfolio cost categories and developed sourcing recommendations to achieve EBITDA improvement.
A&M executed strategic sourcing processes on over $100M in spend across 13 portfolio companies. Our work led to the following results:
- The leveraged sourcing programs achieved over $10M in annual savings benefits portfolio-wide, which was up to a 10% EBITDA lift per company within the portfolio.
- Service levels were maintained or increased and preferred supplier relationships were deepened allowing for additional savings opportunities beyond the initial $10M.
- A&M helped the fund develop a group sourcing process and structure to govern company participation and partnered with preferred vendors to conduct post-implementation compliance and savings checks to ensure sustained realization of benefits over time.