Background
A $250 million CPG food company, recently acquired by a private equity firm, faced significant challenges due to inadequate reporting and business insights. Insufficient expertise and underinvestment in the accounting and finance function hindered its potential. To address these deficiencies and establish strategic value, an interim CFO solution was engaged. The primary objectives included resolving existing issues, implementing remediation plans, and transitioning to a permanent CFO.
Solution
The interim CFO began by identifying the root causes of the accounting and finance challenges through extensive consultation with company leadership, investors, and the accounting team. Several critical issues were uncovered, including prolonged book closures post-acquisition, the absence of a management deck or KPI dashboard, incomplete ERP system implementation, and the need to mitigate high inflation. Additionally, the company required the recruitment of an experienced CFO to mentor the finance team.
To address these challenges, a comprehensive solution was implemented. The team was augmented with interim resources, including a Controller, to expedite month-end close and resolve ERP system challenges. A management reporting package and KPI dashboard were developed to provide timely insights. ERP system issues were prioritized and addressed in stages, improving efficiency and accuracy. The interim CFO collaborated with the operations team to assess the impact of inflation and identify cost-saving strategies. Finally, a search for a permanent CFO was conducted.
Results
The engagement delivered significant results. Prompt resolution of accounting and finance issues improved reporting and decision-making. The management reporting package and KPI dashboard provided essential insights for leadership and investors. Addressing ERP system challenges led to a more efficient and accurate month-end close process. The company successfully tackled inflation through cost analysis, strategic implementation, and product mix optimization. Lastly, an experienced permanent CFO was recruited, ensuring long-term leadership and stability.
Through this partnership, the private equity-backed CPG food company revitalized its financial operations, positioned itself for growth, and achieved improved profitability. The successful resolution of existing challenges and implementation of strategic initiatives enabled the company to focus on future expansion and maximize its market potential.
