Rapid value creation services

In virtually all industries today, companies are determining the best path to navigate the COVID-19 pandemic, geopolitical uncertainty and sector disruptions. Time is of the essence. Business leaders must consider and implement immediate actions to rapidly improve performance.

What EY can do for you in rapid value creation services

EY rapid value creation services bring the breadth of our capabilities to help you reduce your costs and improve margin and liquidity, driving measurable results to reshape and rapidly improve performance⁠.

EY Rapid Value Creation

Creation
Rapid Value Creation

Preservation
Turnaround

Recovery
Restructuring 

Indicators

  • Revenue stagnation
  • Growing selling, general and  administrative expenses
  • Declining earnings before interest, taxes, depreciation and amortization (EBITDA) margin
  • Reduced share 
  • Declining revenues
  • Negative profits and cash flows
  • Bonds trading at a discount
  • Working capital constraints
  • Profit warning
  • Debt covenants at risk
  • Technical default
    on debts
  • Insufficient cash flows
  • Organized or disorganized bankruptcy

EY value proposition

  • Proven track record of maximizing value and performance improvement
  • Hands-on support from seasoned professionals, including interim management and contract research organization services

 

  • A “future-back” perspective, incorporating a customer impact and investor lens
  • Broad, integrated offering with full suite of industry, functional and operational capabilities
  • Pragmatic and sustainable answers, not “slash and burn” strategies
  • Promotion of a collaborative methodology to identify real opportunities with a focus on long-term value creation

 

Addressing your cost and capital needs today to fund your future for tomorrow

SG&A and operations

Where can I streamline my business operations to be more cost efficient and resilient to fluctuations in revenues?

  • Operating model: Only 35% of large companies say they are making good progress in their digital transformations.
  • Labor productivity: 70% of organizations believe that productivity is a concern with remote working.
  • Third-party spend: 50% of Fortune 100 companies' expenditures involve third parties
  • EY employs leading practice tools such as ZBB to identify which cost levers a company should pursue to maximize profitability. 
Revenue and margin

In what areas do opportunities exist to optimize products and customers to drive topline growth and gross profit?

  • Cost of goods sold: 41% of companies are accelerating plans to automate as a result of the coronavirus, which will impact the cost of goods. 
  • Price and promotions: 20% of manufacturer revenue is invested on trade promotions (pdf)
  • Customer demand: Responding to changing customer trends, 75% of organizations selling direct to consumers will offer subscription services by 2023.
Capex and cash

Where can we free up capital from operations that can be redeployed for growth or for a stronger balance sheet?

  • Working capital: The average amount of working capital carried by companies amounts to 5% of total revenue.
  • Capital portfolio: The average real estate costs at most companies amounts to 3%-5% of total revenue.
  • Tax savings: The average indirect tax burden at most companies amounts to 25% of total personnel expenses.

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