Unleashing the Power of 80/20 Value Creation: A Case Study in Driving Sustainable Growth

Top 3 Areas of Impact


The company implemented BDO consulting recommendations and was able to increase EBITDA ($165M to $212M).


The company was able to increase its stock price by 4x after implementing BDO consulting recommendations.


Applied NOLs and credits to offset additional tax liability from income increases.

Summary

BDO’s framework leads to remarkable growth and stock price surge for a thermal management systems manufacturer.


CLIENT
Modine
INDUSTRY
Manufacturing
SERVICES PROVIDED
Management Consulting 
VISIT
www.modine.comopen_in_new

discussion meeting

Challenge

Modine faced challenges related to complexity and inefficiencies across some lines of business, which constrained growth and caused performance inconsistencies across multiple quarters. The company sought to address these issues by simplifying operations, identifying key focus areas and refreshing strategy for different business segments. It required an experienced third-party advisor to analyze gaps and opportunities and operationalize a plan that supported those objectives.

Approach

To address Modine’s goals and pain points, BDO’s Management Consulting practice leveraged its 80/20 business operating system to support value creation through simplification and focus. The process began with a baseline assessment, followed by roadmap creation and execution support. Once the business was simplified, BDO aligned and optimized the organization’s value chain to the new focused operations.

Results

As a direct result of the BDO engagement, Modine imbedded 80/20 into its operating framework which helped generate strong growth in target segments. BDO also provided consulting services that supported the company’s ability to achieve its specific goals, including:

Accelerating the benefits from 80/20 actions is supporting transformation and progress towards long-term targets; strong Q1 results have led to upward revisions to full-year earnings outlook.

Neil Brinker
President and CEO, Modine