Delivered:
$400,000 in annual savings
Comprehensive operating model
Best-in-class KPIs and decisioning tooklit
Client
A high-growth local media startup completed several acquisitions in pursuit of scale but had limited experience integrating assets and discovered deficient financial reporting post-acquisition.
Challenge
After completing two rapid bolt-on acquisitions, company leadership lacked visibility into profitability by market and product, needed a post-acquisition integration plan and was having trouble accurately budgeting across business units. The company wanted to cut overhead by centralizing services but needed financial KPIs tied directly to operational decision-making at each business unit.
Engagement
Morningside interviewed business unit leaders and reviewed sales, CRM, expense and payroll data. We then applied proven financial metrics for hybrid print-digital media businesses, restated past financials and delivered a comprehensive operating model and financial reporting toolset that allowed the client to clearly see product and business unit profitability, indicators of financial efficiency and results under a variety of assumptions and scenarios.
Impact
Using the new model Morningside illustrated several operational deficiencies and paths to post-acquisition integration that would improve company-wide profitability. We surfaced over $400,000 in easily capturable annual operating cost savings as well as previously hidden trends in customer concentration and buying habits. Client leadership gained clear line of sight into performance drivers and enacted changes to spending, staffing and consolidation of administrative and marketing functions.