How we helped
Overview
A satellite video service provider underwent a major carve-out, separating from its parent company and transitioning to private equity ownership. The leadership team sought to transform the company’s finance function to enhance profitability and efficiency, engaging AlixPartners to design a new operating model for general and administrative functions, including finance. The project focused on identifying ways to streamline operations and determining the cost to operate independently.
AlixPartners defined the carve-out perimeter and estimated the incremental standalone costs needed to run the finance function. They identified key value levers, including demand reduction, outsourcing for low-cost delivery, a streamlined management structure, process improvements and automation. The team conducted a detailed design and build of the finance operating model, initiated implementation, and managed the exit from TSAs to ensure a smooth transition to independent operations.
The transformation yielded impressive results, reducing the cost baseline by approximately 20% and restructuring the operating model so as to enable greater flexibility and responsiveness to evolving market conditions Impressively, approximately 80% of these savings were realized within 12 months, demonstrating the rapid implementation and effectiveness of the initiative. The project highlights AlixPartners’ expertise in driving cost efficiency and operational improvements in complex carve-out scenarios.