Cost Reduction for Portfolio Companies
Alliance Cost Containment (ACC) partners with middle-market Private Equity firms and their portfolio companies to improve EBITDA and reduce indirect procurement costs. We reduce costs across PE portfolios through procurement optimization. To date, we have performed more than 3000 category audits and saved millions of dollars for PE sponsored investments.
Benchmarking & Tracking
Our ability to benchmark and document savings is just one thing that sets us apart from GPOs and others in the private equity expense reduction space. Working efficiently with our U.S. based team, portfolio companies achieve a reduction in their non-core procurement expenses with minimal disruption to company operations. Our vendor agnostic team reviews current purchasing activity at the line item level before negotiating with current and new suppliers to achieve the lowest market rates, typically delivering savings of 7%–35% per category reviewed. Once savings are established, we assist with implementation across the expense areas to ensure the updated pricing is realized. After implementation, most categories are monitored with a detailed audit process which compares original pricing with the new, lower pricing.
Typical Client Profile
ACC works with companies from all different verticals. Most portfolio companies have revenues of $100M or higher with a non-core procurement budget of $5 million to $100M+ annually. PE sponsors and portfolio companies who work with ACC to reduce expenses can expect to see a savings ranging of $.5 – $20M+ per company. We are often connected to these companies through middle market private equity firm relationships.