Case Studies

Read Case Studies on Outsourced CFO Services

Back Office Solution

Objective: To implement a full back office solution (Financial Accounting / Reporting, Foreign Exchange Accounting, Consolidations, HR and Cost Accounting Applications in a wholesale distribution environment, with a hyperinflation component) additionally, determining best practices for both corporate structure and reporting mechanisms.

Solution: Once the end game – the vision / the high level strategy – was agreed upon, the mechanical – moving parts – where identified. Comprehensive varied analysis where undertaken – with the assistance of all stakeholders. This ensured compliance to all the elements as identified. Such includes workflow, development of key performance measures / Key performance indicators, GAP analysis, meeting local legislation, GAAP compliance, corporate compliance, and ensuring that all technology can be manipulated to meet the finance department needs.  Typically numerous activities are being executed simultaneously, so solid blue prints and project management skills are of significant importance. 

The following life cycle methodologies where utilized:

  • Vision – what would we like the end product to look like, to be, to achieve. Creating a value proposition

  • Blueprint – develop a roadmap that details milestones, to capsulate what the end product will look like. What it will do, what it will achieve, what integration will occur if any, what is its core capabilities….

  • Risk Analysis – identify all risk elements, with feasible deployable solutions. What if? Does it meet our needs? Any work arounds? 

  • Funding – quantify all costs, determine a comprehensive cost analysis and ensure funding is secured. This encompasses hiring the right people for the right job.

  • Change Strategy – develop a process that encompasses buy in from all users and ensure the organization as a whole can adopt and support these operational changes  

  • Project Management – measure progress against predefined milestones. Address gaps. Reassess project timeliness.

  • Implementation, design & execution – identify key resources, set objectives and expectations. Implement across the board industries best practices.

  • Measurement – testing and determining if all the blueprint objectives where met, within budget and the projected timelines.

Equipment Finance

OBJECTIVE:  A profitable successful client, wished to acquire new equipment, to the tune of $2,5Million plus additional soft costs expenses for installation. Total project $3 Million.

SITUATION: The client faced a few challenges (i) banks did not look favorably towards the clients industry; (ii) the vendor wanted 50% down before they would commence manufacturing the custom piece of equipment; (iii) the piece of equipment would take three months to complete, plus another two months to deliver, with a three month installation and full production cycle. 

SOLUTION: Through intensive research, a equipment financier, was located, that was willing to work with the client, to not only meet the clients needs but also the vendor. Both parties today, have a solid business relationship and enjoy a fiscally mutually win-win relationship. 


Financial Transformation

Financial Transformation

Objective: To implement a robust yet flexible finance system that meets both today and tomorrow’s management’s needs. Realign human capital, to meet needs and adjust hierarchical reporting to meet objectives. The said transformation must equate to at least a 12% expense saving.

Situation: The complex organic growth of a national leader that is vertically integrated, has implicitly decayed the value of management’s ability to extract, interpret and produce added value reports. There is no standardization in procedures, policy manuals being obsolete, and questionable squandering of resources in either or both of head count and manual initiatives.

Solution: On concluding of an in-depth discussion with the executive team, which included working members from all segments of the operation - the stakeholders, a vision was developed that supported a value proposition that will meet managements necessities and be flexible enough to be fluid for changes in the future. A comprehensive blueprint was developed, to depict all milestones in the finished product. A definitive look and feel was created, detailing the gap (if any) to the predefined objectives. Customizing all possible work-a-rounds into the workflow, as a standard operation feature and best practices.  The blueprint identified and reflect exactly what will be achieved, full integration methodology, and its core capabilities. In addition a comprehensive risk analysis was preformed, to identify all elements of risk, the counter measures available, together with and all cost and time impacts. At this stage a comprehensive fiscal budget was developed to consolidate all elements of the project; such included change strategy, project management, implementation strategies and measurement variances.

The fiscal budget and funding determination was the final decision that afforded the stakeholders to be committed to the project. On approval the right people were recruited to execute the vision. Change strategy status of being implicit to explicit was evident as the team from the vision development carried larger roles and the resistance to change was negated. Policies and procedures where developed to encompass buy in from all users and ensure the organization as a whole can adopt and support these operational changes  

Project Management policies and procedures where implemented – measure progress against predefined milestones. Continually addressing gaps, reassess project timeliness and cost impacts. Implementation, design and execution, are the key definitive results of the project – identify key resources, set objectives and expectations are paramount to any successful project. Implementation across the board of industries best practices are similarly important. Key stakeholders are involved to ensure all needs / requirements are met. Dashboards and customizations are developed. In addition to the “obvious” additional elements such as workflow, development of key performance measures / Key performance indicators, GAP analysis, meeting of local legislation, GAAP compliance, corporate compliance, and ensuring that all technology can be manipulated to meet the finance department needs.

In addition to the fiscal requirements being met, Just-In-Time manufacturing methodologies where implemented as well as logistical delivering applications implemented. This area, alone contributed to significant increase in cash on hand, ROI, inventory turnover, not to mention the reduction of delivery costs due to the new logistics application.

New policies and procedures with corporate timeliness where implemented. Appropriate training and educating employees was undertaking. Reconfiguration of such workflow addressed headcount and reporting structure. Numerous positions were eliminated, due to the reduction of “work a rounds”, better automation and compression of the corporate hierarchy. In addition to the visible changes, reporting and coherent data was available quicker, and in some instances live on demand.

The final yet important task was measurement. Did we deliver as requested? Measurement – testing and determining if all the blueprint objectives where met, within budget and the projected timelines. The answer was yes! All objectives where exceeded, and within budget. Savings the first year was in excess of 20%.

Raising Capital

OBJECTIVE: Prepare a robust process for financial projections, enabling the securing of a $1.5 Million debt facility.

SITUATION: Client experienced exponential growth and is cash strapped

SOLUTION: Implementation of a process to develop a robust financial accounting system, that allows for projections, across cost centers, GAP analysis, and consolidations. 

Risk Mitigation

Objective: To provide a holistic overview of the clients business.

Situation: Review off all risk associated to the company, with the sole intent of informing management of the Risk, the consequences and allowing them to make informed decisions, simply Risk Mitigation

Solution: Reviewed insurance policies in place, identified two gaps (i) there was no business interruption insurance (ii) their current broker was not providing a holistic solution. A new broker was identified, coverage was in-sync with risk. Nine months later, a fire occurred, bring production to a grinding stop, for twelve months. Without the business interruption insurance, the client would have never been able to carry the fiscal cost, and certainly would have faced bankruptcy.

Working Capital - Rapid Growth

OBJECTIVE: To secure additional working capital to fund the rapid growth, without compromising owners equity.

SITUATION: The client was fairly new in business, and picked up some for big contracts, that spanned over a year for completion. With a lack of strong financial history, traditional banks would not entertain any funding. Factoring was not a solution, as the client did not wish to disclose any fiscal challenges. The consequences where severe.

SOLUTION: Through an Asset Based Lender, a line of credit was secured, to meet all the clients fiscal needs. Although interest rates are higher, a strategy was executed successfully, where the client understood the need, and the cost. Within two years the company is self-funded. They have grown with numerous Big Fortune 1000 clients and no one was aware of the cash flow challenges they faced.

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