Budgeting & FP&A Support

$200M Chemical Company

Background

  • Two chemical companies that distribute and blend chemicals were purchased by a private equity (PE) sponsor and the intention was to integrate into one platform
  • Both companies were historically founder-owned, lacked financial processes, and had no formal finance team

Contributions

  • Established an annual budget that included financial metrics for key initiatives and a process for monthly forecasting
  • Created a daily sales report and a daily cash report
  • Created a monthly operations review presentation that included financials, operational metrics, sales data, customer metrics, and headcount status

Results

  • An Annual Operating Plan (AOP) was developed that allowed the company’s leadership to compare monthly financials to budget
  • Provided visibility into the company’s daily cash position, which was established through the creation of the daily cash report
  • As a result of the monthly operations review presentation and process, the company’s leadership was encouraged to become accountable for their department’s metrics and costs
  • The sponsor and companies now have visibility into business line metrics and is now well positioned to support future growth