Identifying and Executing Value Creation Levers for an €800 Million Nursing Home Operator
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December 10, 2023
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A Spanish elderly care group with revenues exceeding €800 million experienced a significant decrease in EBITDA, from approximately 15% to 7% after the COVID-19 pandemic, and required a profound transformation to turn around and improve profitability. The private equity fund holding the group engaged FTI Consulting to deploy a Transformation Office program to deliver sustainable long-term EBITDA impacts.
Our Impact:
- FTI Consulting redirected the company’s operating model and managed investment needs, resources and requirements, ultimately resulting in an approximate 7% to 11% EBITDA increase in under three years.
- Our experts implemented a deep transformation and cost flexibilization program with an approximately €12.2 million per year positive impact on cash.
- The team designed a self-funded program with low impact on the company’s cash, helping the client capture €1.3 million in the first four months.
Our Role:
- FTI Consulting’s Business Transformation team in Madrid formalized and launched a Transformation Office at the company, structuring it and jumpstarting workstreams.
- Our experts assessed existing and new opportunities within workstreams, validating savings and impacts, investments, resources allocation and phasing.
- The team developed the implementation plan, including a detailed list of actions, owners, deadlines, dependencies and the identification of KPIs and targets.
- FTI Consulting executed the implementation by running the project management office (“PMO”) function, acting as change agents across the organization and providing interim support to accelerate the deployment of key initiatives.
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Published
December 10, 2023
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