Driving Significant Improvement to Financial Reporting
A $300 million energy services & equipment company was acquired by two mid-cap PE funds in 2012. Following a poor Board meeting, the Finance team needed support to develop an effective Board Package within a short period of time.
Actionable Business Analytics
Stakeholder Reporting & Strategic KPI Enhancement
Budgeting & Forecasting Process Improvement
Initial Phase: Immediate execution of a Board Package to effectively communicate 2014 Company performance / 2015 Budget development
- Developed previous year analysis, thorough understanding of performance drivers, re-assessment and weighting of customer pipeline, and reflection of core differences between manufacturing- and service-oriented business lines.
- Calculated a Return on Invested Capital and Debt Adjusted Return on Invested Capital by Line of Business.
- Pinpointed the need for Inventory Liquidation based on an Inventory Aging and Returns on Invested Capital analysis.
- Conducted a deep dive analysis of the upcoming year’s Budget.
- Developed a Revenue Risk concept to assist the Company in understanding future revenue drivers and segregating budgeted revenue based on probability, thereby highlighting an institutional need to refine the budgeting process going forward.
Follow-on Phase: Support for Additional Reporting Requirements / Create Operating Model
- Supported the Budget approval process and a Bank Book required by Lenders over the subsequent month-and-a-half
- For the Budgeting Process, provided visibility by Line of Business on a monthly basis for P&L and Balance Sheet, and developed an Operating Model to forecast Operating Cash Flow, Working Capital and PP&E.
- Provided a KPI Dashboard for previous year and budgeted year, and implemented a protocol for regular management reporting.
- For the Bank process, developed a forecasted Fixed Charge Coverage Ratio Model that enabled Lenders to track Company’s performance relative to Debt Covenants and dynamically evaluate debt capacity.
Our Accordion team provided support to the CFO and Finance team on extremely short notice, helping the Company effectively communicate its actual and expected performance to key constituents (Investors, Lenders, Boards Members). Additionally, with our support, the reporting culture of the Company was significantly enhanced.