Raising the Bar for Value Creation - TBM Consulting Group

Raising the Bar for Value Creation
Partnering with Private Equity
to Deliver Higher Levels of Investor Return

A Powerful Partner in Private Equity Value Creation
Operational Excellence Is Today’s Business Imperative
In an era of changing market dynamics, aging investments and greater competition for deals, private equity
firms require a new approach to maximizing portfolio value and generating return for their investors.
The solution? TBM.
800-438-5535 • www.tbmcg.com

Raising the Bar for Value Creation
The Undisputed Leader in Operational Excellence
TBM is uniquely positioned to help private equity firms maximize enterprise value, accelerate growth
and generate rapid returns by leveraging operational excellence. We have the ability to dramatically and
durably improve the operational performance of portfolio companies using a sustainable model for
transformational change. Over the last two decades, we have helped hundreds of clients around the
world achieve impressive growth rates of three to five times the industry average, and EBITDA growth
at least two times their top line. Here’s how:
Industry expertise
Our global team of 120 industryfocused
experts brings from
10 to 25 years of operational,
management and executive
experience, offering valuable
sector-specific insight.
Strategic alignment
We carefully align our approach
with the financial goals and
requirements of our partners,
ensuring shared objectives,
expectations and results.
Hands-on service delivery
We maximize enterprise
value by embedding dedicated
teams of experts for rapid
results, knowledge transfer
and sustainment.
Rapid deployment
Our global footprint and bias for
action ensure that we respond
and scale up quickly to help you
achieve your objectives.
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A proprietary approach
We have a 20-year history
of successfully creating business
value through our proprietary
LeanSigma ® approach.
Accelerated results
Our priority is to achieve measurable
EBITDA and revenue growth,
and significant balance sheet
improvements in an accelerated
timeframe, and maintain them
for the long term.
“Blackstone considers TBM a strategic partner for providing LeanSigma ® support and
expertise for the appropriate portfolio companies … to improve their overall business
competitiveness in areas of cost reduction, profitable revenue growth improvements,
delivery improvements… ”
—Jeff Overly, Executive Director, The Blackstone Group
800-438-5535 • www.tbmcg.com

A Commitment to Strategic Alignment
Understanding Your Goals and Helping You Reach Them
The ability to improve the operational performance of portfolio companies and to create a standardized,
repeatable model for transformational change is essential for delivering superior investor returns. TBM works
hand-in-hand with private equity firm partners and business owners to identify and implement improvement
priorities that will accelerate EBITDA growth, maximize free cash flow and achieve transformational change.
Unlike other firms that focus on implementing specific operational excellence, six sigma or lean improvements,
we strategically align our approach with the financial goals and requirements of the private equity firm partner
and business owners—an important step in achieving the measurable business results investors expect.
TBM works closely with private equity firms and investment companies to achieve greater
success and accelerated growth.
Baird Capital Partners
800-438-5535 • www.tbmcg.com

Raising the Bar for Value Creation
Some of Our Portfolio Company Success Stories
A global leader in the
design and manufacture
of floors, ceilings and
cabinets for residential
and commercial markets.
A leading diversified industrial
manufacturing company with
five business units that serve
a variety of end markets
around the globe.
A leading provider of food
packaging and consumer
goods products with global
operations and one of the
broadest product lines in the
specialty packaging industry.
Approach
Due to a prolonged downturn
in real estate markets and the
impact of the 2007-2009
recession, the company sought to
significantly increase sales volume.
Rapidly deployed a CI program
that included training, tools and
infrastructure.
Approach
Challenged to execute a five-year
plan for transforming the company
in two years, they embraced a lean
culture and implemented Policy
Deployment to become a North
American or global market leader
in 90% of their products.
Approach
Built and leveraged a lean CI
management system, in a complex
process environment, to support an
aggressive growth-by-acquisition strategy.
Created a company-wide CI
infrastructure, with corporate-level
regional CI leaders, to broaden
deployment of the company Production
System (lean systems management).
Results
• Expanded programs to 24
manufacturing locations in 10
months.
• Adjusted EBITDA was up
24% from Q2 2010 levels,
on relatively flat sales.
Results
• Increased profitability 40%
each year.
• Recovered over 200,000 square
feet of manufacturing space.
• Drastically reduced inventories
and added hundreds of millions
of dollars in revenue.
Results
• In 2011, the company
improved revenues by 17%
year over year through organic
growth and acquisitions.
• EBITDA improved 38% through
raw material pass-through and
cost savings initiatives.
• Removed $250 million of cost
from 2010-2011.
800-438-5535 • www.tbmcg.com

A Disciplined Approach to Value Creation
Empowering a Quantum Leap in
Operational and Financial Performance
With TBM as a partner, private equity firms can count on standardized, disciplined methodologies proven
to improve operational performance and elevate business value.
TBM has a 20-year history of successfully driving change, creating value and impacting financial results.
We maximize value creation across each stage of the investment lifecycle, from operational diligence through
to exit preparation:
Operational Diligence
• Upfront, hands-on diagnostic to identify
opportunities and actions that will accelerate and
maximize improvements in EBITDA, and free up
working capital
• Development of the 100-day plan for rapid
operational improvements
Full Potential Realization
• Sustainable model for value creation – revenue
growth, EBITDA improvements and reductions in
working capital
• Implementation of a management system to align
strategic business objectives and key performance
measures with operational improvement objectives
and monitor financial impact on business
Rapid Transition/Integration
(Post-acquisition)
• Implementation of the 100-day plan, operational
excellence improvements and acquisition
integration
• Targeted high-intensity operations and business
processes/transactional focus, with financial and
operational metrics to track results
Exit Preparation
• Readiness for sale: Creation of a clear and
comprehensive exit strategy, including objective
evaluation of opportunities for exit
• “Reverse” due diligence: Anticipatory assessment
of portfolio company operations to identify,
quantify and address any problems and areas of
exposure prior to examination by potential buyers
800-438-5535 • www.tbmcg.com

Raising the Bar for Value Creation
TBM Results Speak For Themselves
To access our complete library of case studies, management briefings and other resources,
visit tbmcg.com or call 800-438-5535.
800-438-5535 • www.tbmcg.com

TBM Consulting Group TBM is a global operations management consulting firm that maximizes enterprise
value and accelerates growth by working with clients to leverage operational excellence. We work side by side
with our clients to immediately improve EBITDA, accelerate organic growth, integrate newly acquired businesses,
and generate immediate and long-term balance sheet improvements. Our subject-matter professionals
average 10–25 years of operational, management and executive experience, and none of them are career
consultants. We leave behind a customized framework and structure for lasting change using our proprietary
LeanSigma ® approach, which has been continuously improved since its introduction over 20 years ago.
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TBM Consulting Group, Inc.
4400 Ben Franklin Blvd.
Durham, NC 27704
www.tbmcg.com