13 | Cost-Management Strategies
Profit rises fastest when waste falls. Most new owners find 5–10% of hidden savings in year one. Start with a spend analysis: 1.Export 12 months of general ledger data 2.Group by vendor 3.Rank by spend Then focus on: Consolidating categories for volume discounts Renegotiating top 10 vendors Replacing underperforming or overpriced vendors Auditing freight and energy bills Standardizing PO approvals and invoice matching Run quarterly “lean walks” — short tours where frontline teams call out inefficient processes, overordering, or rework. Case Example — Multi-Site Buyer Consolidates Consumables A fter acquiring five car washes, the new owner consolidated chemical purchases to a single vendor, unlocking tiered pricing and shaving 11% off costs — without changing product quality. “Lower cost, same quality — the cleanest path to higher margin.” Action Checklist Run a vendor ranking report and flag top 10 suppliers Ask each for a review of current pricing and terms Schedule your first “lean walk” within 45 days of closing Automate invoicing for recurring, stable spend Quick Summary Better cost control gives you breathing room. Get your team involved and track every win.
T Bank Insight We help buyers identify cash wins early — vendor consolidation, bulk discounts, and better terms can immediately lift DSCR and post-close confidence.
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For informational purposes only. Not legal, tax, or financial advice.
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