What is cost savings worth to a private equity portfolio company?

One dollar of run-rate savings is worth roughly eight dollars of enterprise value at an 8x EBITDA multiple. One million dollars of annual savings turns a $100 million valuation into $108 million. Typical savings run $2,000 or more per employee per year, per company.

Will cost containment savings hold up in quality of earnings diligence?

Savings are validated and reported monthly against the company's own statements. This is permanent run-rate reduction rather than a one-time working capital release, which is the kind that survives quality-of-earnings review.

What does portfolio-wide cost containment cost the fund?

Nothing upfront and nothing from the fund. Programs are billed in arrears out of validated savings at the portfolio company level, so there is no capital call, no management fee allocation and no line item to explain to LPs.

How much can franchise operators save?

Eleven quick-service restaurant operators in one system saved between $60,000 and $468,000 each per year. The franchisor makes it available and each unit opts in independently, with nothing administered at the corporate level.

PORTFOLIO-WIDE · $0 UPFRONT · NO CAPITAL CALL

What is a dollar of EBITDA worth to you?

At an 8x multiple, roughly eight. We take $2,000+ per employee out of the run rate, permanently, across every company you own.

THE MATH SPONSORS ALREADY KNOW

Where does margin come from in year four?

Pricing actions are spent. The commercial levers are pulled. And the cost side has been squeezed everywhere the operating partners already know to look.

Benefits and indirect spend sit in almost every portfolio company, they're rarely diligenced properly, and they're the same size problem whether the company does $20M or $2B.

$1M of run-rate savings is $8M of enterprise value at an 8x multiple.

THE VALUATION MATH

$1 saved = ~$8 of value at an 8x EBITDA multiple

$100M becomes $108M on $1M of annual savings

$2,000+ per employee per year, per company

30 to 45 days to live, no lift from the operating team

HOW IT WORKS AT PORTFOLIO SCALE

How would you deploy this across the book?

Start with one company or run it portfolio-wide. Neither requires anything from your operating partners.

Run it once, apply it everywhere

One diligence conversation, then the same playbook across the portfolio. Each company keeps its own carrier, broker and payroll system; nothing gets consolidated or migrated.

Margin without revenue risk

No pricing action, no headcount action, no customer impact. Cost comes out of what the company already buys, so the growth story stays intact for the exit narrative.

Recurring, not one-time

Validated and reported monthly against the company's own statements. It survives quality-of-earnings review because it is permanent run-rate reduction, not a working capital release.

FOR FRANCHISORS

What would this do for franchisee economics?

Eleven quick-service operators in one system saved between $60,000 and $468,000 each, per year. You make it available; each unit opts in on its own. Nothing is administered at the corporate level, and unit-level profitability is the number that sells the next franchise.

A benefit for your operators that costs the system nothing to offer.

WHAT SPONSORS ASK

The questions you're already thinking.

Does this compete with our operating partners' agenda?

Will this hold up in diligence?

What does this cost the fund?

How fast does this show up in the numbers?

Which company would you start with?

Pick one. We'll model it at no cost and hand back a number you can take to the board.

See your savings