Problems We Solve

Problems We Solve

#1 Problem We Solve: Cost Optimization

In order to increase the shareholder value-added (SVA) share of investments and portfolio companies, Forsyth Advisors annualizes cost reductions to produce excess operating profits and free up cash. The standardization of ‘the right costs for the right products’ leads to the achievement of higher EBITDA margins.

With high cost pressure, an extensive supply chain, low resources, rapid change with new technologies and materials – buyers are challenged in value chain management. At the same time, the potential for value creation lies in the high proportion of purchased components. We specialize in taking advantage of market fluctuations and price variations to eliminate the obscurity of price, optimize shareholder value, improve supplier negotiations, and maximize cost savings.

Should-Cost Analysis

All sorts of factors affect operating costs.

A should-cost analysis allows the organization to estimate the product cost before an RFP is issued, providing a benchmark against which to measure competitive bids. It helps buyers understand the supplier’s cost structure and negotiate with suppliers collaboratively. A well-executed should-cost analysis can form the backbone of a long-term, mutually beneficial supplier relationship.

For our clients, identifying should-cost along with detailed process data helps source components more strategically, anchor supplier negotiations in quantitative data and industry knowledge, and model procurement costs without waiting for supplier quotes.

Cash Flow Challenges

Cash flow issues indicate that your payment terms aren’t aligned with your business. Getting your suppliers on board with new terms sets a critical foundation for your company to sustain profitable growth.

Uncertainty About Where Supplier Relationships Stand

Where do you stand in your supply chain today? This is the first question we work to answer with our customers. And the truth is most companies have at least one supplier slowing them down. With a hands-on approach, we work closely with companies to optimize those relationships and fuel profitable growth.

Supply Chain Focus

When a large portion of business relies on a small number of suppliers or a specific geographic region, it poses a significant risk to a company. Before acquisition, we conduct a thorough competitive analysis, assess the risks and mitigation required, and create a transition timeline and strategy for diversifying suppliers to help drive intelligent, data-driven investment decisions.

Supply Chain Improvement

Bring us your high-priority goals and challenges, and we’ll work to drive immediate results with a systematic and flexible approach—without requiring a large investment of portfolio company time or money.

Scalability Concerns

Will a prospective portfolio company be able to support rapid growth after acquisition? What action would you need to take to prepare the company for profitable growth? We can provide an in-depth analysis of current operations to give you a complete picture of what will be required to maximize EBITDA after investment.

Hidden Competition

Are there hidden industry players that could threaten your business’s future? This is always a concern when purchasing a company, especially when it’s in a category that you’re unfamiliar with. Our team specializes in predictive supply chain analysis in consumer packaged goods and can provide a comprehensive report to inform your decision to acquire a company.

Support For The Full Ownership Cycle

From pre-acquisition to exit, we help you make the best deals in your market while driving exponential value and improving performance at every stage in between. Get all the information you need to fool-proof your post letter of intent (LOI) decision making process.

Forsyth Advisors solves supply chain and operations problems

Our Approach To Solving Supply Chain Problems Is Proven.

Ready to resolve the problems holding back your companies’ performance? Schedule a 15 minute conversation with a trusted sourcing consultant at Forsyth Advisors and start solving your supply chain problems.