Better integration of business units and a boost to EBITDA

How we helped

• Oil & Gas
• Energy & Process Industries
• Corporate Strategy & Transformation

An $8 billion North American fuels distributor and marketer had grown rapidly through M&A without fully integrating the new businesses. The company was running without a clear operating model, and inconsistent processes were dragging on costs.

Investors were pressuring leadership to address cost challenges, but previous efforts to rein in cost were short-lived. AlixPartners was brought on to improve efficiency and effectiveness across all key functions, including marketing, sales, HR, finance, and the business units, and to do so in a way that set up the company for growth.

Our team achieved an 8% reduction in spend on non-head-count cost envelopes across key functions, and implemented pricing and commercial operations tools to drive improvements through the commercial and retail businesses.

We also deployed a formal savings governance structure to track, measure, and validate the savings initiatives. This time, the cost improvements wouldn’t be a flash in the pan. Leadership wanted lasting improvements and a leaner operational model. Their plan was validated.

On the far side of the engagement, the company has seen a total annual run-rate EBITDA boost of $150 million. The underlying organization and operations have seen significant improvements throughout the process, with high-grading of tools, processes, and capabilities throughout the project.