The document discusses strategies for improving a company's EBITDA through operational transformations. It provides examples of how minimal improvements across portfolio companies can significantly increase a firm's overall enterprise value. The strategies include identifying opportunities to increase revenue, improve efficiencies, and reduce costs. A methodology is outlined that involves discovery, assessment, planning and executing initiatives to standardize processes and embed transformations organizationally. Case studies demonstrate how targeting specific value streams can yield substantial EBITDA and margin gains through strategic programs.

1. EBITDA Improvement
Methodology

2. 1
V a l u e o f S t r a t e g i c T r a n s f o r m a t i o n
Minimal improvements in a company’s margin and or marginal reductions in its SG&A
spend can correlate to an increased value of a specific portfolio company. Making
those improvement across a portfolio can have a profound, transformational impact
on an equity firms enhanced enterprise value. CohnReznick’s CFO Advisory and
Business Transformation Practice works with equity firms and their portfolio companies
to identify, prioritize, and deploy strategic programs designed at maximizing ROI and
improving enterprise value.
Company 1 Company 2 Company 3
EBITDA $10M $15M $20M
Margin Improvement $.25 M $.6M $2.5M
SG&A Reduction $1M $1.4M $.75M
Industry Multiplier 7 5 9
Additional Value $8.75M $10M $29.25M
$48M
Equity
Firm’s
Enhanced
Enterprise
Value

3. 2
E v o l u t i o n t o O p e r a t i o n a l E x c e l l e n c e
AD HOC / REACTIVE IMPROVEMENT
Primary Value Proposition: Focused improvement Effort
Narrow improvement is driven by the heroic efforts of relatively
few individuals in reaction to business changing business need.
Challenge: Establishing repeatable and planned efforts
Advisory Focus: Tool development, process facilitation,
domain expertise consultation,
TRANSFORMATION PROGRAM STANDARDIZATION
Primary Value Proposition: Consistent and Standardized Business
Transformation Initiatives are defined and organized using
consistent methodologies.
Challenge: Transformation not fully embedded across enterprise
Advisory Focus: Process Design Implementation, Requirements
Definition, Best Practice and Operational Procedure Creation
TRANSFORMATION AS OPERATIONAL ASSET
Primary Value Proposition: Measuring and Communicating Impact
Integrated and managed transformation processes recognized
as strategic assets to gain competitive advantage.
Challenge: Monitoring improvement Opportunities and Impact
Capture
Advisory Focus: Establishing measurement and management
frameworks, analytics/dashboard development
TRANSFORMATION AS STRATEGIC VALUE DRIVER
Primary Value Proposition: Transformation Driven Business Value Creation
Sustained and optimized operational excellence programs that are
embraced and fully integrated into the organizational culture.
Challenge: Enterprise Leadership and performance management
Advisory Focus: Center of Excellence Creation, Cultural Identity
Development

4. 3
Assessment
S t r a t e g i c T r a n s f o r m a t i o n a n d E B I T D A
I m p r o v e m e n t T i m e l i n e
Discovery Planning
Execution /
Implementation
Week 1-2 Week 2-4 Week 5-6
Throughout the
Implementation
•Deep dive data
analysis
•Order to cash boot
camp
•Procure to pay boot
camp
•Record to report
boot camp
•Financial Planning
and Analysis boot
camp
•Financial Data
analysis
•High level data
analysis
•Peer benchmarking
•Executive boot camp
and key interviews
•Executive read out
•Transformation and
EDITDA improvement
roadmap
•Executive and
Stakeholder adoption
•Revenue
Enhancement
initiatives
•Operating Efficiency
initiatives
•Cost (SG&A)
Reduction initiatives
•Program
Management

5. 4
E B I T D A I m p r o v e m e n t O p p o r t u n i t i e s
Revenue Enhancement Operating Efficiencies Cost (SG&A) Reduction
• CRM
• Omni-channel
• Detailed process and policy
design
• Applicable system selections
and corresponding
technology deployment
• Process measurement and
reporting program
• Financial Analysis & Planning
deployment
• Integrated business planning
deployment
• Insurable risk realignment
• Tax outsourcing
• Telecom spend
• Benefits program realignment
• HRIS and Payroll transformation
• Internal audit outsourcing
Program Management
Collaboration, Innovation, Domain Expertise

6. 5
C F O A d v i s o r y & B u s i n e s s
T r a n s f o r m a t i o n S e r v i c e s
In today’s slow-growth economy, CFOs are challenged to simultaneously drive corporate performance
management, optimize the financial function, and identify and finance strategic growth initiatives.
CohnReznick’s CFO Advisory and Business Transformation Services Practice professionals, some former CFOs
themselves, provide solutions to help CFOs address their business challenges at every stage of financial
transformation.

7. S t r a t e g i c T r a n s f o r m a t i o n

8. 7
E n t e r p r i s e T r a n s f o r m a t i o n
I m p r o v e m e n t M e t h o d o l o g y

9. 8
Ta r g e t e d Va l u e S t r e a m
T r a n s f o r m a t i o n M e t h o d o l o g y

10. 9
D e t a i l e d D a t a A n a l y s i s
• Historical Financial statement review for review for trends and key EBITDA
improvement opportunities to identify high impact line items
• Complete review of company's exposures and insurance policies as well as
a recommendation of needed changes in coverage and potential
opportunities for cost savings
• A strategic baseline inventory and analysis of your current
telecommunications spend, in every location, as well as developing an
understanding of your future needs
• Leverage research and benchmarking to provide the strategic context to
gauge overall benefit program efficiency, cost and value, as well as
competitive positioning.
• Review operational performance and evaluate against peers to identify gaps
in operational efficiency and effectiveness

11. 10
P e e r B e n c h M a r k i n g
Leveraging our relationship with APQC and access to the different benchmarking tools
(specifically the Rapid Performance Assessment tool), we can quickly provide clients with
validated data to identify performance gaps. We can complete short, online assessments
on high-level key performance indicators (KPIs), and within a few business days receive
a summary report of the clients’ metrics with industry, revenue, and geographic
comparisons.
Rapid Performance Assessments can be performed for:
• Develop and Manage Products and Services
• Market and Sell Products and Services
• Deliver Products and Services
• Develop and Manage Human Capital
• Manage IT
• Manage Financial Resources

12. 11
Innovation labs help build an innovative business culture that’s fast and nimble,
seizing opportunities before the competition, to get ahead, and stay there. Key
attributes of an innovation lab include:
Developing fast and advanced solutions using accelerated approaches in a lab
environment can rapidly accelerate capabilities and innovation. It introduces new
ideas and skills, involves end users, showcases technology, and connects
to extended networks to drastically reduce time from idea to result.
Innovation Lab
Enables Transformation
• Speed: Accelerate the innovation process to get maximum
results in the least possible time.
• Creativity: Discover what the world’s best innovators and
companies do to come up with break-through ideas.
• Risk: Reduce innovation risk while increasing innovation
performance.
• Engagement: Achieve effective collaboration throughout
across the organization, and unleash the hidden great ideas
waiting in every corner.
• Leadership: Insights from breakthrough innovators and best
practice companies will accelerate the right choices and get
the entire organization on the move.
I n n o v a t i o n L a b a s a C o m p e t i t i v e
W e a p o n

13. 12
E x e c u t i v e B o o t C a m p
Executive stakeholder involvement is critical to the success
of any Strategic Transformation program. We will conduct an
executive level collaborative Process Discovery Boot Camp
with the Transformation Steering Committee to gain a top-
level, strategic view of the “as-is” values streams
• Global collaboration of critical key, executives
• Decomposing the organization into key value streams
• Mapping strategic enterprise objectives into tactical project
objectives
• Perform an exercise to rate, rank, and prioritize the tactical objectives into
manageable projects
• Voice of the customer analysis (leverage a SWOT analysis
template)
• Maturity model self assessments
• Problem statements and charter definition
• Data flow mapping exercise

14. 13
D i s c o v e r y a n d A s s e s s m e n t
For each and any of the value streams in scope, leveraging the Innovation Lab
we would conduct a series of collaborative Process Discovery Boot Camps with
the process owners, process participants, and other key stakeholders, including
staff from accounting and IT, to gain a top-level, strategic view of the "as-is" work
streams
• Global collaboration of critical key, process owners
• Decomposition of the value stream into key milestones and
activities
• Build out and validation of the problem statements and
definition of key themes and findings that put pressure on
EBITDA growth
• Location and / or facility site visits and walkthroughs
• Global, collaborative review and discussion of key findings and
recommendations with key stakeholders
• Exercise to map recommendations and projects back to the
improvement opportunities and to assess impact and
complexity of improvement projects
• Process to prioritize improvement projects and define the
implementation plan based on ROI and greatest impact
INITIATIVE
Initiative Impact
Weighting
Analysis
Organizatio
nRedesign
Procureme
ntProcess
Redesign
FP&A
Technology
ERP
Metrics
Weigh
t Rank
Rx
W
Ran
k
Rx
W
Ran
k RxW
Ra
nk
Rx
W
Enterprise Risk 4 5 20 1 4 5 20 5 20
Reputation Risk 3 1 3 1 3 1 3 1 3
EBIDTA 2 1 2 5 10 1 2 3 6
Cash Flow 1 1 1 1 1 2 2 3 3
Total 26 18 27 32

15. 14
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16 M17 M18
Enhance setup of PayComm and Paychex (in
support of benefits reporting)
Establish Change Management Program
PayComm rollout to all clients
Implement analytics and reporting tool to
support reporting needs
Establish performance management program
Collaborative process redesign
Develop process, procedure, and policy
documentation
Technology assessment and selection -
transactional processing
Process implementation
Technology assessment and selection - workflow
and project management
Technology assessment and selection - budget
and forecasting
Transition to the fully outsourced model
Organization redesign and implementation
Execute training and communication plan
R o a d m a p D e v e l o p m e n t
Upon completion of the Assessment phase, we will work with the Transformation Steering
Committee to finalize the identification and prioritization of the opportunities for
improvement and formalize the Transformation Roadmap. Components would include:
• High, medium, and low ROI and impact improvements.
• Detailed process and policy design initiatives
• Opportunities to improve the use of existing technology platforms.
• Recommended use of additional technology platforms to improve performance.
• Organizational realignment and shared services opportunities
• Design of an analytics and reporting program