Case Study: a U.S.-based manufacturer of custom paper and packaging achieves $17M EBITDA growth with BDO's 80/20 approach

U.S.-based manufacturer of custom paper and packaging boosts EBITDA by $17 million with BDO

A U.S.-based manufacturer of custom paper and packaging faced the challenge of driving growth and profitability to prepare for a private equity exit within three years, all while being constrained by a need to limit capital investment. The company engaged BDO's advisory services, specifically their 80/20 team, to address this.

BDO implemented a strategic 80/20 approach focused on organizational transformation, which included refining pricing, improving manufacturing processes, and enhancing data analytics. This solution enabled the client to reduce working capital by $14 million, enhance gross margins by 5 percentage points, and improve quote wins by 7 percentage points. Ultimately, BDO's work helped the manufacturer achieve an EBITDA improvement of $17 million on a lower revenue base, positioning it for future growth.