CASE STUDY A -
Global PE Group
(Contact - available on request)
Secondary buy portfolio company.
Global Group in construction and underground industry.
SITUATION GOING IN
- Highly leveraged financing structure-deal signed in 2007.
- No full time CEO and newly promoted senior management team.
- Inexperienced finance team with core skill sets missing.
- Financial Reporting not transparent, financial systems unstable and monthly reporting slow and intransparent - stakeholders unhappy and impatient.
- People dependence dangerously high in Finance organisation.
SITUATION ONE YEAR LATER
- Organisation SWOT completed and new orrganisation implemented, key positions recruited and up and running with stage 1 completed after 6 months.
- Elimination of people dependencies in crucial areas of finance by introduction of transparent process and task responsibility documentation.
- Implemented new financial systems “on top” of the ERP creating a platform for transparency.
- Introduced quarterly business reviews, capital expenditure reviews, and budget and forecast reviews.
- Overhauled and redesigned Management Reporting for stakeholders within three months, reduced monthly close time by more than 15 days within 6 months and implemented new Global Chart of Accounts within 7 months.
- Implemented Global IFRS and local GAAP Group Accounting manual .
- Set up a Treasury Department with weekly liquidity forecasting and accuracy monitoring and centralised cash management / manual pooling together with a covenant tracking and forecasting tool. Introduced a currency monitoring flow report as well an interest swap and hedging position tracking tool.
- Reduced Working Capital by 3 % of Sales throgh an agressive and structured program with orrganisational buy-in.
- Implemented an aggressive cost reduction program.
- Developed a Global Transfer Pricing Model.
- Two acquisitions completed in South America.
