Case study · Natural snack manufacturing
Three weeks on site to find out how much cash the business was actually carrying.
A natural snack manufacturer, about $109M revenue.
Results at a glance
$9M to $15M
Cash availability identified in the business during the three week discovery.
$6M to $11M
of EBITDA, the value of the 12 month operations agenda set out in the findings brief.
20 days
Cycle improvement observed in the cash conversion cycle, the days between paying for materials and collecting from customers.
The question
The question was one of amount: how much cash is available, what a year of operations work is worth, and which item to do first.
What a discovery covers
A discovery runs 2 to 3 weeks on site. A leadership survey, an assessment of which elements of the operating system exist, which need upgrading and which are already effective, use of time studies, and a working capital baseline built from the client’s own ledger. A first tool is built on the biggest recurring export, and it closes with a findings brief that says what the numbers mean and what to do first.
What it found
Three weeks here identified $9M to $15M of cash availability and set out a 12 month operations agenda worth $6M to $11M of EBITDA, which is earnings before interest, taxes, depreciation and amortization. All of it identified. None of it banked. Some clients stop at this point and act on the brief themselves, and the brief is theirs either way.
The result
Every figure, and how it was confirmed.
$9M to $15M
Cash availability identified in the business during the three week discovery.
$6M to $11M
of EBITDA, the value of the 12 month operations agenda set out in the findings brief.
20 days
Cycle improvement observed in the cash conversion cycle, the days between paying for materials and collecting from customers.
Identified, not yet banked
How we report valueWhat they kept
They own the findings brief, the working capital baseline behind it, and the first tool.
Next step
If this company sounds like yours, ask us what a discovery would look at in your numbers.
You do not have to be ready to buy anything. One of the three of us will answer the question ourselves.