Materials & Mining
MERU CASE STUDY
Implemented $5.6M of working capital upside for a specialty paper manufacturer
COMPANY OVERVIEW
- A $500M manufacturer of specialty paper products
- MERU was engaged by the 1st lien lender (and eventual owner) of the company to review 700+ executory contracts and develop negotiation strategies to realize EBITDA and working capital upside
- The goal was to generate a minimum of $700k of savings
OUR APPROACH
- Created a comprehensive master listing of the executory contracts by contract type, payment terms, average annual spend, cure amounts, etc.
- Developed renegotiation strategies focused on the top ~90 contracts (representing ~85% of total annual spend)
- Presented the renegotiation strategies to the Company’s key vendor contacts and coached them on negotiation approach
- Held weekly check in meetings with the company
OUR IMPACT
Achieved ~10x savings target by implementing $5.6M of working capital upside and $1.0M of EBITDA savings through improved payment terms and supplier contracts in an 8 week period.
Optimized sales pipeline tracking and management process to provide better visibility into order backlog.