Healthcare & Pharmaceuticals
MERU CASE STUDY
Identified $25.0M of cost reduction opportunities for a hospital textile services provider
COMPANY OVERVIEW
- The national leader in providing laundry and linen management services and supplies to hospitals, long-term care facilities and outpatient medical practices across the nation
- Annual revenue approximately $350 million
- The Company faced EBITDA deterioration mostly due to pressure on the Company’s top line (due to decreasing volumes and price compression) while maintaining a relatively flat cost structure
OUR APPROACH
- Evaluated the Company’s current business plan and prepared a revised operating plan and cash flow forecast
- Assisted in identification of cost reduction and operations improvement opportunities
- Assisted in the development and management of a 13-week cash flow forecast
- Assisted in financing issues including assistance in preparation of reports to various stakeholders
OUR IMPACT
Generated approximately $7.3 million in incremental liquidity as a result of rebuilding the collections department, negotiating with delinquent customers and collecting ineligible receivables.
The additional liquidity allowed stakeholders more time to evaluate their strategic options.
Instrumental in the identification of $12.4M to $25.0M of cost reduction opportunities and $1.7M to $2.5M in margin improvement in the following areas: Operations, Distribution/Logistics, Procurement, SG&A Reduction, Margin management