Financial Operations Optimization

$90M Industrial Goods Company

Background

  • Purchased in 2017 by a top 5 private equity fund and was a product of numerous acquisitions
  • Weather negatively effected sales and exposed many of underlying problems to new management, as a result that brought in an outside to assess and provide insight

Contributions

  • Refocused the team to work with underlying data rather than previously used reports, which allowed for corrective actions to be taken
  • Gave a voice to next level of financial management that had been previously been stifled
  • Initiated a 13-week cash flow projection process
  • Guided the team through multiple reforecasts
  • Changed the accounts receivable aging from days sales outstanding (DSO) to past due, which provided insight into areas of opportunity
  • Executed more aggressive collection tactics

Results

  • Directly saved the company $1M of cash
  • Created positive momentum for the company’s CEO and highlighted to board the negative trends in current year
  • Provided clarity regarding the current and prior years’ results, and allowed for budget buying time for the new strategic plan