As the year winds down, finance and operations leaders face growing pressure to protect profitability and prepare for the next fiscal cycle. Tight budgets, market volatility, and sponsor expectations make cost optimization a strategic priority.
For PE-backed companies and corporate leaders, the right directional moves now can unlock meaningful EBITDA improvement, streamline operations, and position the business for growth. In this playbook, we highlight three areas where companies can focus their cost optimization efforts before year-end.
1) Strategic Sourcing: Rapid Cost Reduction for PE-Backed Companies
Procurement decisions often represent 50–70% of total costs in many portfolio companies. Even small improvements in supplier strategy can unlock meaningful savings and enhance EBITDA performance.
E78 Guidance
- Assess where current supplier relationships or contracts may limit efficiency or value creation.
- Explore opportunities to improve supplier partnerships, drive cost savings, and enhance operational flexibility.
- Think strategically: sourcing can be a lever not just for cost reduction, but for improved business performance.
Across PE-backed companies, strategic sourcing initiatives—such as vendor consolidation or contract renegotiation—have unlocked millions in untapped value, improving both EBITDA and cash flow.
Ready to identify high-impact savings in your supply chain? Schedule a cost optimization assessment.
2) Technology Utilization for Operational Efficiency and EBITDA Impact
Underutilized resources, whether personnel, technology, or equipment, can quietly inflate costs. Optimizing utilization of your talent and technology assets ensures your business is running efficiently and aligned with strategic goals.
E78 Guidance
- Conduct a high-level assessment of resource allocation and utilization.
- Identify areas where redeployment or better alignment can yield measurable operational improvements.
- Focus on opportunities that increase productivity without disrupting core operations.
In a recent IT spend transformation engagement, E78 leveraged data-driven insights to optimize capacity, delivering substantial cost savings and improved operational efficiency. Read the case study here.
3) Outsourcing Non-Core Functions to Improve EBITDA
Not every function needs to remain in-house. Thoughtful application of managed services can reduce overhead, accelerate efficiency, and free internal resources for strategic priorities.
E78 Guidance
- Evaluate non-core activities for potential outsourcing opportunities.
- Partner with trusted providers to ensure cost savings while maintaining quality.
- Monitor results and ensure these moves support both short-term savings and long-term EBITDA growth.
For a century-old consumer goods company, outsourcing their FP&A function and operational adjustments identified through strategic insight contributed to 135% EBITDA growth. Explore the case study here.
Year-End Cost Optimization: Take Action Now
Year-end pressures don’t need to be reactive. By focusing on strategic sourcing, resource utilization, and managed services, companies can drive measurable cost reductions, strengthen operational efficiency, and protect EBITDA.
Even directional changes in these areas can create big momentum heading into the new fiscal year.
Don’t wait until next quarter. Unlock actionable cost optimization opportunities today.