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Case Study

Implementing FP&A Processes to Drive Decision-Making

Team Size
1 Director, 1 Vice President, 1 Associate
Project Duration
12 weeks

The Challenge

An online marketing and merchandising platform which operates a portfolio of branded e-commerce sites had entered a rapid growth phase. The company received an investment from a $17bn global growth equity firm. To support continued growth of the business, the private equity sponsor identified a range of critical finance initiatives to drive its investment thesis and facilitate strategic decision-making.

Services

Actionable Business Analytics

Stakeholder Reporting & Strategic KPI Enhancement

Budgeting & Forecasting Process Improvement

The Execution

Our Accordion team supported the company with a comprehensive approach:

  • Quickly formulated a robust understanding of the key business drivers and gaps in financial process and tools, and prioritized the work plan.
  • Assisted the management team in the development of a robust Board Reporting Package with actionable outputs for key areas, including financial performance variance and trends, monthly unit economics, customer cohort performance, marketing spend performance and working capital/liquidity trends.
  • Conducted a detailed analysis of historical advertising spend and revenue data by marketing channel (e.g., Facebook, Google, Email, etc.) to determine predictive drivers of traffic and conversion rates to orders. Based on the analysis, developed a new methodology for forecasting revenue for each brand.
  • Constructed a dynamic forecast financial model, built up by brand with key input drivers to run operating scenarios – which formed the basis of a revised annual Budget for the current and next fiscal years.
  • Developed a KPI metrics reporting framework for the company by functional area, defining a set of financial/operational metrics to be tracked regularly.
  • Supported the CFO and executive team with various bespoke analyses, including:
    • Developing a Daily P&L Report to provide ongoing visibility into margin trends
    • Analysis of historical customer cohort data to benchmark relative performance and evaluate metrics such as acquisition cost, marketing ROI and payback period.

The Results

Accordion delivered a robust set of FP&A tools and analytics to drive Budget, daily and monthly financial reporting and KPI metrics reporting, including marketing spend effectiveness. The management team and growth equity sponsor derived significant benefit from the initiatives implemented, particularly with respect to granular forecasting tools. Of special importance was understanding advertising spend effectiveness and revenue generation by marketing channel, and the ability to monitor the company’s financial performance and profitability on a daily basis.