Enabling Financial & Operational Visibility Across a Federated Company
Originally, Accordion was engaged to assist with sell-side efforts – as the Company could not readily provide consolidated financials and operational data. In order to provide these relevant datasets to the financial advisors and interested buy-side parties, our team started by reviewing the Company’s 27 ERP instances to understand and execute on normalizing and consolidating the financials and operational data.
Leveraging the knowledge gained and infrastructure created during the sell-side exercise, our Accordion team provided the Company with a comprehensive operational dashboard and business intelligence repository. In addition, we built automated reporting packages that permitted the Company to provide monthly operating and financial reporting on a consolidated basis to its Sponsor, as well as sub-reports to each of its 48 divisions for performance review and measurement.
Financial Statement Preparation & Analysis
Stakeholder Reporting & KPI Development
BI Systems Selection and Setup
- Reviewed, structured, and analyzed all key data sources – both SQL-based and other disparate sources [i.e. transactions, contracts, financial data sources (TB/GL-based), site-of-service specific metrics (by client, product, geography, state, etc.) and other benchmarks, cross-selling analytics, past acquisition performance, etc.] to provide needed support of the investment theses marketed to potential buyers; this included generating critical outputs for the Confidential Information Memorandum, Management Presentation, and other milestone events to ensure back-end datasets supported the message to the market
- Created retroactive pro-forma financials to demonstrate trends in the business by location/product/segment, including acquired entities
- Managed communication and data requests amongst buyers, the Investment Bank and the Company, as well as other 3rd party service providers involved in the process
- Worked with the Company and the Investment Bank to provide data and support the synergy assumptions for a buyer’s financial model
- Organized structured datasets in order to properly and thoughtfully populate and manage the data room
- For the operational data, once Company management identified the ERP systems that would survive consolidation, our team designed and built a separate database in Microsoft SQL Server that unified select operational data across these surviving systems; this data represented multiple Company entities and captured ~90% of the Company’s operations (as the Company’s IT consolidates future acquisitions into the surviving systems, the operational data warehouse will asymptotically represent 100% of operations data)
- Post sell-side mandate, Accordion was engaged for two main workstreams and one significant, but smaller, workstream:
- Creation of a financial reporting package for the Sponsor, as well as the generation of automated P&Ls rolling up to each profit center, as defined by the Company’s CFO
- Creation of automated operations dashboards in Power BI, along with the corresponding backend database (an augmented version of the backend created for the sell-side process); our Accordion team also created processes and coded scripts that enabled the Company’s IT to run data updates across all surviving entities while ensuring a single source for operations data across all end users
- Supported the Finance team with smaller ad hoc requests for tools to facilitate other tasks, including (but not limited to): revenue attribution to acquired entities that had been partially or fully consolidated, volume analytics at collection sites for vendor negotiations, etc.
In summary, the project was a large success. Upon Accordion’s departure, the Company not only had the necessary historical datasets to provide to its financial advisors, but it also had (and will continue to have) access to an array of consistently reported, consolidated data (both financial and operational) that originally could only be prepared on an ad hoc basis through manual effort.