Rebuild

Cost Engine

Redesign the cost base. Every dollar of sustainable margin is a multiple of equity value.

What This Engine Does

An intentionally designed cost base is a competitive advantage

Most lower mid-market SaaS cost structures were not designed — they accumulated. Services creep, vendor sprawl, unaudited onshore engineering, and cloud spend that outpaces revenue compound into a business that looks like software but operates on services economics.

Three components: Offshore Substitution restructures engineering through a global delivery model, not a vendor relationship. AI Automation deploys internal AI for productivity and margin. Vendor Compression rationalizes the SaaS stack and installs procurement governance. Together they typically lift EBITDA margins 15–30 points over an 18-month rebuild.

Execution Components

Three components.
One cost system.

Sub-module

Offshore Substitution

Restructures engineering cost through a global delivery model. Integration, knowledge transfer, cultural alignment.

Sub-module

AI Automation

Deploys internal AI for productivity and margin lift. Workflow automation, engineering assistance, support deflection.

Sub-module

Vendor Compression

Rationalizes the SaaS and vendor stack. Procurement discipline, contract governance, SaaS audits.

Outcomes

What the engine produces

EBITDA MARGIN

15–30 pts

Sustained margin lift from cost redesign, not one-time cuts.

CLOUD SPEND

20–35%

FinOps governance recovers spend without impacting performance.

SAAS SPEND

15–25%

Quarterly rationalization recovers material spend at zero disruption.

ENG COST/FEATURE

Measurably

Offshore integration and AI productivity drive sustained efficiency.

Deploy the Cost Engine

BVC operates inside the business — not alongside it. We install the system, run it until it compounds, and hand it over to your team.

Talk to BVCEngagement Models

Other Engines

Other engines in the rebuild

Revenue Engine

Rebuilds GTM, pricing, and expansion into a repeatable revenue system.

Product Engine

Rebuilds engineering productivity with AI-native workflows, data moat, retention loops.

Compound Layer (L3)

Normalizes metrics, drives multiple expansion, builds exit-ready reporting.

Ready to benchmark
your portfolio company?

Start with a diagnostic. No commitment, no consulting theatre — just a clear picture of where the highest-leverage intervention points are.

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