Background
Our client, a flexible circuit board manufacturer, faced challenges following a Private Equity (PE) acquisition. A departing CFO left a gap in financial leadership, requiring an interim solution to manage daily operations, financial reporting, and audit compliance, and the existing finance team lacked the expertise to meet the demands of the PE firm.
Solution
We deployed an experienced interim CFO to address the client’s immediate needs. Our focus was on:
- Streamlining Processes: We reduced the month-end close time, implemented efficient procedures, and integrated purchase accounting.
- Audit Preparation: We documented internal controls, prepared revenue recognition reports, and ensured compliance with external audit requirements.
- Reporting Enhancements: We developed internal reports for group reporting and implemented a cash flow forecasting model.
- Planning and Integration: We deployed additional resources, implemented the Planful software platform, and streamlined information flow.
- Earnout Calculation: We prepared comprehensive documentation to support accurate earnout calculations for sellers.
- Control Documentation and Standard Costing: We updated control documentation and assisted in developing a standard costing methodology.
Results
Our efforts produced significant and lasting results:
- Financial Compliance: All transaction-related tasks were completed, and two CPA audits were successfully conducted.
- Efficiency Gains: Streamlined processes led to a significant reduction in the month-end close time.
- Enhanced Reporting: Essential management reports were generated, providing valuable insights for decision-making.
- Team Enhancement: Strategic hiring of additional accounting staff with improved skill sets strengthened the team’s capabilities.
- Financial Performance: The local management team achieved an impressive 26.4% EBITDA in 2022, exceeding the PE firm’s expectations.
- Operational Transformation: Streamlined processes and insightful recommendations improved the daily operating cadence of individual sites and the entire organization.
Conclusion
Our comprehensive solution transformed the client’s financial operations. By streamlining processes, enhancing reporting, and strengthening the team, we established a solid foundation for sustained success. The client is now well-positioned for continued growth and future achievements.
