Managing Global Liquidity and Revamping the 13-Week Cash Flow
A leading global consumer electronics manufacturer faced liquidity issues due to challenges forecasting working capital needs and supplier management. Accordion was engaged to revamp the Company’s global 13-week cash flow model to project short- and medium-term liquidity needs, including a capital infusion. Our team was called on to advise the Company on its refinancing and assumed an active support role in the treasury to coordinate funding operations globally. As part of the engagement, we were involved in the Company’s reporting, strategy, float management, forecast improvements, cash conservation guidelines & controls, and evaluation of liquidity levers.
Active Liquidity Management
13-Week Cash Flow Forecasting
Business Plan Reforecasting
- Met with CFO, Director of Treasury, and the Global CFOs and Controllers to understand current forecast methodologies and consolidation process.
- Worked with company key stakeholders to redesign global cash flow forecast templates, consolidation process, and variance reporting in order to provide required liquidity visibility.
- Reviewed receipts and disbursements on an ongoing basis to determine opportunities to improve liquidity situation and working capital requirements.
- Built processes to tighten controls around OEM disbursements.
- Negotiated payment terms with manufacturing vendors to reduce short term liquidity requirements.
- Worked hand-in-hand with the company’s CFO to provide a liquidity assessment to board and sponsor.
- Reviewed and modeled the covenant requirements, as set forth by the senior lender, in order to assess and test implications of a refinancing solution.
- Supported conversations between sponsor and lender to reach a refinancing solution.
- Continued to manage and own cash flow forecasting processes and variance reporting on an ongoing basis until a full time Treasurer was hired.
Accordion brought liquidity management leadership, tools, and execution to the Company’s globally dispersed finance team. We developed a more robust and routine cash forecasting process, helped evaluate various liquidity options, and actively managed liquidity and disbursement decisions. Ultimately, a refinancing was achieved that permitted the Company to continue focusing on its core operations. Subsequently, our team transitioned the 13-week cash flow forecasting processes and tools to the treasurer and finance team, which continue to help actively mange liquidity and provide insight/visibility into future liquidity and working capital needs.