What we advise on
Pricing and margin
Most companies price relative to costs, not market value. Pricing becomes legacy. Discount structures reward negotiation. We measure realised price versus list price, identify where pricing architecture destroys margin, and test what the market will bear. A 2-3 point pricing gap on a 15 point margin business wipes out 15-20 percent of profit. Most companies are blind to this.
Portfolio economics and contribution
Contribution by product and channel is often invisible. Volume growth hides margin destruction. Channel costs are unclear. We break down where profit actually comes from. A company growing revenues 10 percent can destroy unit contribution simultaneously. Bad mix growth looks like success.
Growth expansion economics
Growth plans are built on optimistic assumptions. Cash burn does not align with revenue timelines. Payback assumptions are loose. We test real unit economics and stress test cost structure and adoption assumptions. A business cash positive in base case can destroy value if upside fails. Bad expansion decisions consume years of prior profit.
Fixed cost structure and vulnerability
Fixed costs compound quietly. Many companies do not model what happens if revenue slows. Cost structure reflects prior decisions, not current needs. We model cost behaviour under different revenue scenarios. A business with 35 percent fixed costs cannot survive a 20 percent revenue shock. Most discover this too late.
Deal assumptions and due diligence
Deal teams are motivated to make the deal work. Strategic synergies are assumed but not proven. Integration costs get underestimated. Downside scenarios are skipped. We stress test deal assumptions and identify where economics depend on optimistic outcomes. Many acquisitions destroy acquirer value. The difference between good and bad deals is often set at due diligence.
Capital allocation and return discipline
Capital allocation often reflects momentum, not forward return expectations. Competing investments are not evaluated consistently. Hurdle rates are inconsistent or unenforced. We help establish consistent return thresholds and identify where capital earns below cost of capital. Poor allocation compounds silently. A business allocating at 8 percent return when cost is 10 percent destroys value every year.