For private equity (PE) operating partners, discovering fast EBITDA improvements across diverse portfolio companies is a constant priority. While many focus on headcount reduction or procurement optimization, few realize just how much value is buried in tangled, outdated electronic data interchange (EDI) value-added network (VAN) contracts. With years of M&A and organic expansion, we routinely see clients inherit a patchwork of legacy VAN providers, each with its own contract terms, portals, and surprise fees. This complexity not only drains operational resources but also quietly erodes margins that could otherwise drop straight to the bottom line.
Consolidation isn't just a technology clean-up project; it's a lever for rapid, low-risk value creation. Here’s how multiple overlapping VAN agreements drag down EBITDA (earnings before interest, taxes, depreciation, and amortization):
If you oversee several portfolio companies, chances are high that each one tolerates these inefficiencies, leaving significant EBITDA points on the table.
The fastest path to EBITDA gains is simply eliminating expensive, duplicative VAN contracts and combining all EDI volumes on a modern, transparent provider like Nexus VAN. In real client migrations, companies have achieved savings of 40–80% compared to legacy VANs. These savings are amplified by Nexus VAN’s zero setup, migration, or hidden fees. Predictability comes from a straightforward kilo-character (KC) model, where you pay based on actual usage, not arbitrary mailbox, document, or trading partner counts.
Example: Organizations previously penalized by opaque overage fees and mailbox surcharges saw their monthly EDI spend drop dramatically after switching to a consolidated contract with real results captured in the first quarter post-migration.
Fragmented EDI landscapes slow revenue by turning routine integrations into complex, bespoke projects. By centralizing with a VAN that supports every protocol—AS2, SFTP, REST API, and more—and provides full global interconnectivity, onboarding new partners can take days rather than months. Our migration dashboard provides full visibility at every step, removing guesswork and reducing dependency on overstretched IT teams.
This accelerates speed-to-revenue, especially after M&A events when time is of the essence.
Operating partners frequently ask how to quantify benefits beyond the P&L. With all EDI data flowing through a single platform, reporting, audit, and compliance become dramatically easier:
Having one source of truth is transformative. Your teams no longer reconcile between disparate partner portals or chase missing messages across vendors.
SLA confusion and support delays are common complaints with legacy, multi-VAN setups. By consolidating with a single provider and a 99.998% uptime guarantee, we can offer same-day technical responses and clear continuity of service. Our support philosophy is proactive and personal.
If you’re curious about how to evaluate EDI support properly, check out our post on what excellent VAN support actually looks like.
A major concern for PE operating partners is disruption during platform transitions. We built our process on zero-downtime principles, backed by a transparent migration dashboard. This empowers you to monitor every step and leverage parallel run strategies, minimizing any risk to ongoing trading partner relationships. With SOC-2 compliant infrastructure and advanced encryption, consolidation actually hardens your security and compliance posture, not just streamlines operations.
Want more tips on avoiding disruption? Review our guidance in our checklist on switching EDI VANs and practical steps for streamlining EDI.
Industry-wide, PE sponsors with proactive operating teams are able to outperform those leaning only on management or third-party consultants. Consolidating EDI VAN agreements quickly stands out as a high-ROI opportunity with low execution risk. In our experience, this approach consistently delivers:
While we avoid unnecessary case study filler, it is worth sharing that brands ranging from Unilever and Honda to mid-sized manufacturers have all seen the practical advantages of switching to Nexus VAN. Key wins include:
Our engagement model always starts with a risk-free 90-day trial, so there’s a chance to validate benefits before you commit.
It rarely gets attention at the board level, but EDI VAN consolidation is one of the most reliable levers for rapid EBITDA expansion, especially when you’re managing multiple businesses, each with their own legacy technology contracts and embedded inefficiencies. There’s almost no category of spend where you can recover such a large percentage, so quickly, with so little operational risk.
If you’re ready to stop funding legacy costs, enjoy world-class support, and capture transparent, scalable savings, take a closer look at how Nexus VAN makes the entire process risk-free. See it for yourself or share this with your operating partner network and unlock the value hiding in plain sight.
For more articles on optimizing your EDI operations and budgeting strategies, explore our posts on how transparent billing drives efficiency and predictable EDI budgeting for finance leaders.
Ready to see where your savings lie? Request a demo or contact Nexus VAN to explore how we help PE operating teams achieve their rapid EBITDA goals with risk-free EDI migration, transparent pricing, and expert support every step of the way.
