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Materials & Mining

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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
Materials - Case Study #1

OUR IMPACT

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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.

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Optimized sales pipeline tracking and management process to provide better visibility into order backlog.