Restoring polish to a faded home furnishings company

Client Results Story

Opportunity
The client's newly acquired portfolio company is a leading manufacturer in a concentrated industry that formerly earned high margins selling to a fragmented customer base. But industry growth is beginning to slow and customers are experiencing financial pressures that threaten to further curb future growth.

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Approach
Shortly following acquisition by private equity investors, Bain initiated a 100-day blueprinting process to diagnose the company's competitive position, prioritize opportunities to improve performance, and develop a detailed road map to guide implementation.

View Recommendations

Recommendations
Introduce a phased sequence of parallel initiatives to:
  • Implement new account planning strategies and improve penetration of the more profitable small accounts and contract customers.
  • Redesign the core product to simultaneously reinvigorate growth, streamline production and reduce costs.
  • Selectively raise prices and clarify procedures to standardize pricing and make it more effective.
  • Reduce material yield loss during the manufacturing process.

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View Results

Results
  • EBITDA increased 50% within three years, principally as a result of the growth initiatives.
  • The company was sold, earning a fivefold return on invested capital.

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