Case Study: Maximizing Exit Value
Does your business have untapped opportunity to maximize exit value?
Identified key profitability levers to position the company for a successful exit, including $30M of growth opportunity across 4 years with $3.6M pre-transaction.
The Challenge
A specialty chemicals manufacturer struggled to demonstrate growth, realizing less than 50% of recent pricing initiatives due to an inadequate pricing strategy that lacked strategic segmentation and commercial strength. Despite low customer churn, new customers had a lower margin profile than lost customers, leading to margin dilution. With limited visibility into true cost-to-serve and analytical capabilities to measure and optimize commercial performance, they feared they were leaving money on the table.
The Solution
INSIGHT identified key profitability levers to position the company for a successful exit, including:
- Enhanced customer and product segmentation for successful targeted price increases and price outlier correction
- Basket of goods strategy to drive incremental sales from existing customers
- Comprehensive cost-to-serve model to pinpoint profit leaks and boost contribution margins
- Detailed data attribution and analytical tools to clearly demonstrate long-term financial improvements, making the investment more attractive
