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Technology, Media & Telecommunications

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MERU CASE STUDY

Identified $5-6M of EBITDA for a technology services provider

COMPANY OVERVIEW

  • $150M technology services provider to small and medium enterprises. The Company’s offerings include Managed IT services, building technology solutions, and deployed field services for large technology companies
  • The Company was formed after a 3-way acquisition of three different businesses with limited overlap in customer base and product offerings
  • Post-merger, the Company had been facing significant margin pressures resulting in non-compliance with its financial covenants and debt obligations
  • MERU was engaged to help develop a turnaround plan

OUR APPROACH

  • Comprehensive MERU 360° approach was followed in a 4-week diagnostic
  • Conducted a detailed analysis of the Company’s cost base and identified operational improvement levers, including procurement, sub-contractor costs, and managing project cost overruns
  • Analyzed the customer service call center productivity and efficiency metrics and recommended appropriate staffing levels
  • Further analyzed the SG&A spend by benchmarking Finance, HR, and Facilities costs to other comparable companies

OUR IMPACT

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MERU identified $5-6M of EBITDA (current EBITDA of ~$15M) improvement opportunities across all levers.

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Developed a detailed implementation plan to help capture the identified value creation opportunities.

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Co-authored the operational improvement plan along with the management team to get lender approval for the covenant relief.