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Contributing to Business Innovation and Value Enhancement for Diverse Clients

Looxent provides clients with practical and implementable solutions, driving fundamental change that leads to significant improvements in business value. Through this approach, Looxent positions itself as the most trusted partner for clients, consistently proving its reliability and commitment.

Materials & ChemicalsStabilizing Post-Acquisition Uncertainty and Launching Value-Up Initiatives


Looxent partnered with a leading domestic corrugated cardboard manufacturer, acquired by a prominent private equity fund, to execute a year-long project aimed at enhancing enterprise value. Facing challenges such as disruptions from the sudden sale announcement, profitability declines due to price reductions, and insufficient capabilities to efficiently manage multiple plants, the client sought to stabilize operations and establish a foundation for performance improvement. Looxent initiated efforts even before the acquisition was finalized, focusing on operational efficiency, internal management system enhancements, and employee change management.

Early Stabilization of Post-Acquisition Uncertainty

At the project’s outset, the abrupt nature of the sale announcement caused significant confusion among employees, compounded by apprehension and resistance towards the private equity fund. Recognizing the urgency of stabilization, Looxent visited all 12 plants to explain the fund’s strategic goals and address plant-specific issues through workshops. During these visits, key personnel were identified, and intensive problem-solving training in an action-learning format was conducted. This approach helped foster an accurate understanding of the private equity fund’s intentions and laid the groundwork for seamless execution of Value-Up initiatives.

Comprehensive Assessment of Operations and Key Issues

Looxent conducted an in-depth analysis of the company’s operations, leveraging insights from due diligence findings on market conditions and internal challenges. The analysis covered sales growth feasibility, customer and product portfolio assessments, productivity and cost structures of the 12 plants, investment planning, core process efficiencies, and performance management systems. The findings informed the formulation of the Value-Up strategy, strategic task definitions, detailed execution plans, and a robust employee communication framework, ensuring readiness for full-scale implementation.

Phase 1: Quick Wins and Employee Engagement

The first phase focused on tasks that could deliver rapid results and foster employee ownership. Over four months, 12 strategic initiatives were implemented, including sales activation, development of cost analysis frameworks, procurement cost reduction, and establishment of a sales-production alignment process.

One significant outcome was a more than 30% increase in sales volume through targeted channel activation. Additionally, a robust cost management system was introduced, enabling better profitability tracking for the diverse product and customer portfolio. Crucially, the initiatives were led by the client’s key personnel, ensuring organic change management and active employee participation.

Phase 2: Advanced Profitability and Process Optimization

The second phase, spanning five months, tackled more complex and analytical tasks, aimed at elevating profitability management and addressing higher-level challenges. Key initiatives included profit and cost variance analysis frameworks, KPI-driven productivity and cost monitoring, productivity improvements, product standardization, and optimized production location strategies.

A pivotal achievement was the shift from volume-based to profit-based management systems, supported by KPI comparisons that fostered healthy competition among plants. This transformation significantly enhanced internal management capabilities and aligned operations with profitability goals.

Results and Lasting Impact

Despite a 10% drop in sales prices compared to the previous year, the client successfully maintained EBITDA levels comparable to the prior year, establishing a strong foundation for sustained growth.

Employees expressed high satisfaction with the project, highlighting Looxent’s tailored and actionable solutions, practical execution, and measurable impact on the company’s performance. Unlike prior consulting engagements, this collaboration delivered solutions designed specifically for the client’s unique context, driving tangible improvements and building trust across the organization.

Through this Value-Up initiative, Looxent enabled the client to stabilize early uncertainties, build operational resilience, and achieve substantial progress towards long-term enterprise value enhancement.



LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226      E  service@looxent.com 

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© 2024 LOOXENT. ALL RIGHTS RESERVED.


LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226

E  service@looxent.com 

© 2024 LOOXENT. ALL RIGHTS RESERVED.