What is the typical timeline from making an introduction to Forsyth “finishing” the project?
Do you aid private equity groups in Due Diligence?
A: Yes, typically we’ve done due diligence for PEGs that have done prior engagements with us before. However, we’re always open to help in that area.
How do you create value for Portfolio Companies & PE?
When we talk about what we can do within your portfolio. Again, most of our engagements are directly with an individual company, we're not doing a lot of cross portfolio things. This briefly illustrates, if we can save someone a $1MM: Not sure what your Exit Multiples are but we always use the 8x [...]
What is your client focus?
From a focus standpoint, we’re here connecting with you because your incentives are tied to earnings growth, you buy a company and later sell it for more, and we can play a vital role in that. Typical Clients: Most of our clients are in some way or form in revolving around manufacturing, value added [...]
What makes us different?
Proven cost reduction expertise Really what makes us different is that we have a proven cost reduction program that has been tested at hundreds of companies. This is a process that was developed at large companies like General Electric where our Managing Partners spent an extensive time of their careers at. Mentored by industry [...]
What is a quick overview of the process?
A. We work one on one with the portfolio companies to go in do a spend review that is very quick and noninvasive. Hopefully, we can strike a cord with them that resonates and offers significant cost savings. Then we present those findings to the management team and see if they’re of interest and [...]
What industries have you worked in?
A. Interesting spectrum of different companies. However, if the company is buying really raw materials (e.g. raw resin, raw steel), things that are indexed it’ll be a true commodity and be hard for us to find that step function change in cost structure. On the other hand, if they’re only buying finished goods from [...]
How large of spend do we look for?
We’ve saved $1MM on $2MM of spend and we’ve saved $500K on $10MM of spend. It really depends on the category and where they’re buying it from.We consider ourselves dealmakers, similar to you, that’s how strategic sourcing works similar to how you’re buying and selling companies. It’s not a matter of day to day purchasing [...]
Our companies are already performing well. How would you be able to add additional value?
Most of our clients have 40%-50% gross margins BEFORE we start working with them. It’s great that your businesses are performing well, but chances are there are opportunities for margin enhancement by addressing cost.
How much time will this take us? We have many other initiatives going on.
How many of those initiatives are going to add $500k - $1M or more at the EBITDA line? Don’t you want to know what our opportunities could be worth? 15 minutes is all we need? Our data request is simple. Supporting our assessment should take less than 10 hours of your companies combined time, [...]
