The situation
Our client acquired two privately owned businesses that manufactured and distributed consumer goods similar to its own. The businesses operated through similar channels, selling a range of products to both small retailers and larger supermarket chains. The consolidated revenue of the group was $70 million p.a. Although our client had moved quickly to integrate the businesses operationally, separate management teams, financial and administrative systems and processes continued to co-exist.
The client had a small internal accounting team that managed the accounting and reporting requirements. The team did not have the expertise nor the capacity, however, to identify and implement strategic initiatives across the combined businesses.
The onset of the GFC saw the business experience strong price pressures. They countered this by cost cutting, and streamlining operations. But, even with these measures in place, the business owner questioned whether more had to be done to manage the bottom line and ensure survival of the business.
How we helped
Younis & Co were asked to independently assess the financial and administrative systems and processes, including accounts receivables, accounts payables, general accounting, management reporting, IT and procurement functions, and to look for synergies across the operating businesses.
The task was undertaken by one of our people taking on the role and responsibility of ‘virtual’ CFO to the company. Working across each entity, we developed a financial strategy for the business owner that addressed:
- The present situation of both businesses
- The position where each of the businesses should be
- The priorities
- The initiatives to drive each of the businesses to the desired position
- Measures and success factors
Solution
The key stakeholders accepted the financial strategy – its priorities, initiatives and measures. The strategy was implemented with little disruption to business, the customer base and without pressure on existing internal resources.
For a confidential discussion about the range of services and benefits of a ‘virtual’ CFO to your business, please contact Pierre Wakim on +61 2 9683 7888.