Chief Accounting Officer Fortune 1000 Company in Chicago
I engaged DLC multiple times for significant projects including due diligence, shared services migration and interim accounting support. Their project management, finance and accounting resources are top notch – they truly understand client service and always hit the ground running. I would absolutely use their services again as I know I can count on them to successfully get the job done on time and on budget.
Director of Business Analysis & Planning $500mm Pharmaceutical Company in Los Angeles
The DLC consultant was very committed and has a high level of capabilities from his business acumen to his computer modeling skills. I would say he’s pretty exceptional. He provided the greatest value in his modeling skills and financial aptitude. He’s taken on some pretty big projects that we didn’t have the capabilities or capacity to take on.
Chief Financial Officer Community-based Commercial Bank in Los Angeles
The DLC consultant was very committed and very flexible to our needs (this impressed me). Also, when I showed him my point of view and painted a picture for him, I could see he got it and would then run with it. He was open to alternative approaches. With documenting processes, he made recommendations to our processes as he encountered opportunities. He provided the greatest value by pulling together all the facts which helped us see that we have outgrown our main vendor. I would absolutely utilize him again!
Executive Director Finance Major Entertainment Company in Los Angeles
I appreciated the way our DLC consultant took ownership of the project and hung in there until the work was complete. Their level of accountability rivaled my best employee and the quality of output was excellent given the short time frame we had to work with….
VP/Corporate ControllerMulti Billion $ Apparel Company in Los Angeles
DLC is my go-to firm when I need good talent-fast! I have found the DLC personnel to be highly professional and knowledgeable individuals who can hit the ground running on any project without needing to be micro-managed.
- The client – a global provider of technology products and services that has been recognized as one of the fastest growing companies in the U.S. over the past two years. The rapid global growth has left the Company with inadequate financial reporting for tax, audit, and management purposes. The legacy accounting system is inadequate to handle the multi-entity, multi-currency, and the transaction volume that the Company is now encountering. The Company maintained separate accounting financial systems for the individual subsidiaries in local currencies until 2012, however, in 2013, the Company combined the transactions of the individual entities under one set of financial records. This has resulted in lack of separation of transactions for the legal entities, which has led to the inability to report entity specific financial statements for VAT, income tax, and statutory reporting purposes in the individual countries. Additionally, the Company is an acquisition target, which requires the Company to provide consolidating financial statements by entity for the past three years.
- The CFO has tasked the Controller to create subsidiary specific financial ledgers that incorporates foreign exchange and intercompany accounting for the past two years. The end result was to:
- Carve out entity specific accounting transactions and record them in their own general ledgers.
- Determine and incorporate foreign exchange and intercompany accounting for each entity along with appropriate elimination entries for consolidated financial statements.
- Prepare consolidating financial statements by entity.
The basis of this transformation was: fulfill tax, audit, statutory, and management reporting requirements. To do this the following deficiencies were addressed:
- Process Design – Identify transactions to be removed from consolidated entity and be placed in individual entity ledger.
- Accounting Compliance – Implement foreign exchange and intercompany accounting in each subsidiary’s financial ledger.
- Financials Preparation – Use separate financial ledgers to create financial statements by entity.
- Reporting – Use subsidiary financials to create consolidating financials with eliminations.
DLC’s services were secured to design, recommend, and implement the separation of accounting transactions by entity with appropriate foreign exchange and intercompany accounting as well as to prepare the consolidating financial statements for the requested periods.
DLC supported the above initiatives by leading the effort to:
- Identify process of segregating transactions of different entities.
- Research and implement accounting for foreign exchange and intercompany.
- Prepare separate general ledgers for each entity.
- Train accounting staff on booking foreign exchange gain and loss and intercompany transactions.
- Design and prepare template for each entity by month to record all transactions.
- Design and prepare template for consolidating financial statements by month.
- The above initiatives resulted in separate general ledgers for each entity.
- Compliance with foreign exchange and intercompany accounting.
- A template and actuals of consolidating and consolidated financial statements for the periods requested.
- Financial reporting deliverables requested for VAT filings, tax and statutory reporting, and investors.
These specific outcomes were in addition to the many process improvements and templates implemented.
DLC also made a significant impact on the completion of the acquisition transaction of the Company by timely providing the consolidating financial statements by entity for the requested periods.
- The client is a San Francisco-based start-up which provides farmers with spectral data to optimize water and nitrogen application. The client was looking to raising equity for its Series A funding round to finance its operations. A DLC Consultant was engaged to build a 3 statement financial model (Income statement, Balance Sheet & Cash flow statement). One of the major problems being a startup, was that there was no existing financials to forecast a 3 statement model. The company was in its early stage to record revenues in its books and it was difficult to perform company valuations using earnings multiples or DCF approach.
- The DLC consultant studied the company fundamentals, researched the market and other similar companies within the same space and using different valuation methodologies determined a valuation range for the investors. The DLC consultant’s activities included:
- Develop a 3 statement financial model (Income statement, Balance Sheet & Cash flow statement).
- Research public & private companies and build public and private comparable models to determine a valuation range.
- Worked on Capital IQ, Factiva and other financial databases to research public company financials and private company information as requested by the client.
- Advise client on the revenue generation process and built a 5 year revenue forecasting model.
- Develop an investor/discount cap model to estimate the series A equity conversions.
- Built a 5 year discounted cash flow model and performed company valuation.
- Determine a valuation range using sensitivity analysis.
- DLC made a significant impact by developing a series of financial models using different valuation techniques to support the current valuation range, required by the investors, within the time limit set by the client. The outcome was in addition to the initial requirement of building a 3 statement model using assumptions.
- The client – an international multi-billion dollar financial institution had grown in recent years through acquisitions in North America. This opportunistic acquisition strategy led to the patching together of otherwise disparate businesses, leaving them with multiple systems, processes, sites and structures. This resulted in unsustainable expense structure, lack of scalability of various areas of operations including finance operations. Many of the processes were cumbersome; some were built around legacy systems which repeated many of the same processes and not leveraging best practices or economies of scale.
- A special task force under the Change Management Group was initiated to address this fragmented state, taking actions to integrate in a smart, efficient fashion and create a focused organization. The end result was to:
- Pursue activities and processes that deliver client value.
- Achieve operational excellence with efficient and effective execution.
- Drive expenses to the lowest possible level.
The basis of this transformation was: Simplification, Standardization and Ongoing operational excellence. To do this the following organizational design levers were addressed:
- Structure – Spans of control and reporting layers that create clear accountabilities and enable further cost reductions to be achieved.
- Footprint – Representation in critically important markets to serve customers while greatly consolidating the company’s real estate to drive expense savings and staff connectivity and effectiveness.
- Processes – Eliminating activities that don’t add value to the client and maximize the use of the offshore captive unit and third party vendors when they could get it cheaper and better externally.
- Shared services – Combining like functions and eliminating shadow organizations to drive knowledge sharing and efficiency.
DLC’s services were secured to lead the Change Management team for Controller functions for two large legacy organizations.
DLC supported the above initiatives in leading a project team for the Finance area with the following activities:
- Identify disparate processes amongst legacy organizations and integrating to one simplified and unified operating model including common ERP systems (PeopleSoft) for financial accounting and reporting.
- Roles clearly defined and accountabilities understood. This included elimination of duplicate roles in legacy organizations and reduction of footprint.
- Process improvement, improved documentation and identify/elimination of redundant reports.
- Identify processes that could be offshored.
- Prepare solution design and timeline.
- Prepare Desk Top Procedures (over 750) for transfer to offshore unit.
- Prepare training material for offshore unit.
- Conduct offshore on-site Foundations and Process training for new offshore recruits.
- Prepare Service Level Agreements (SLA’s) for tasks being offshored.
- Lead a team of SMEs to support process training, Service Rehearsal Training and Go-Live stabilization support overseas.
- Implement routine to monitor key reporting matrix and incidents for offshore activities.
- Realigned on-shore team to support offshore activities and new organizational structure.
- The above initiatives resulted in a single integrated ERP system (PeopleSoft) for accounting and reporting across the organization.
- Over 60% of the finance tasks were off-shored.
- Two major footprints for the finance organization across the U.S. were integrated to one unit.
- On-shore finance organization was reduced by over 60%.
- Total savings of over $3 Million per annum from above finance initiatives.
These specific outcomes were in addition to the many process improvements, staffing recommendations made (and changes executed), and new measures of the business identified and incorporated into monthly accounting and reporting.
DLC also made significant impact on the overall culture of the company, building an appreciation for the kind of sense of urgency, initiative, and accountability that would help the finance/accounting group succeed.
- The client operated in a highly complex product category where each retailer demanded their own unique pricing position relative to other retailers. Additionally, each retailer used their own unique promotion types such as price cuts, coupons, “buy one, get one”, advertisements, or in-store displays.
In the previous year, promotions were viewed as a necessary activity in order to compete for shelf space at the retailers. So all of the retailers’ requests for promotions were accepted without a prior evaluation for financial performance (such as ROI).
At the market level, margins had been steadily declining across the entire category. The costs of materials were volatile and increasing overall, also a growing number of competing products emerged in recent years.
As a result, the client began to focus more heavily on improving the ROIs of their promotions.
The client intended to manage their mix of promotional activities in favor of the stronger performing types, so they needed to understand the ROI for each promotion, at each retailer, and for each product.
Additionally, this information would be used to plan for the coming year, so there was a time constraint of completing the analysis in one month to coincide with the close of the quarter.
- To address these challenges, DLC deployed a consultant with industry experience in the retail sector and functional expertise in financial modeling, project management, and business case development.
This combination of industry experience and functional expertise made the consultant uniquely qualified to address the challenges of the client and provide an immediate contribution.
Once deployed, the consultant conducted an initial assessment and determined:
- An existing evaluation model existed, however it was difficult to operate and difficult to update with new categories of promotional activity. Also, it was nearing its maximum capacity to accommodate new data.
- Recent turnover in the client’s Finance team meant that only a small number of tenured employees had the institutional knowledge needed to complete the analysis. This had the potential to slow progress on the current project and hinder the client’s ability to repeat this work on an ongoing basis.
In order to meet the client’s needs while also accommodating their time constraint, DLC divided the project into three phases.
- In Phase 1, the DLC consultant utilized the existing model to perform the ROI analysis, but they devoted a minimal amount of resources to update, repair, or improve it.
- In Phase 2, the DLC consultant gathered requirements to build a new ROI model and conducted a post-mortem review of Phase 1 to determine what improvements were needed.
- In Phase 3, the DLC consultant built the new model, documented its design and operation, and trained the client’s Finance team to use it.
- The timing of Phase 2 overlapped with the other phases, so the entire project was completed within only 2 months. Also, the improvements to the new model would allow the client to perform future analyses in a shorter timeframe than was previously possible.
By implementing their project strategy, DLC was able to fulfill the client’s immediate need and also contribute improvements to their tools, training, and processes.
- The client had experienced recurring problems with accuracy in recording of payroll transactions. The client suspected that the source of the problem had to do with how payroll was being processed by the company’s outside payroll processor, which was not one of the major full service payroll processors. The company had selected this payroll processor at inception of operations when it had a skeleton staff. Since then, the company had grown rapidly adding employees and offering expanded benefits to directors, management as well as employees, including stock based compensation. The client felt that the payroll processor may no longer be the right choice.
Furthermore, the company did not maintain written policies and procedures for payroll transactions, and there was only one person at the company who had been in charge of and knowledgeable about payroll processing, namely the same the person who had selected the payroll processor at the inception of the company.
Hence, the client was in need of an independent thorough review and documentation of procedures surrounding payroll processing. The client retained DLC for the project. DLC deployed a senior consultant with several years of hands-on and supervisory experience in managing payroll and employee benefits, and writing of policies and procedures.
- Through initial discussions with the client, the DLC consultant deployed the following approach:
- Conduct interviews with the appropriate client personnel to develop a detailed understanding of current procedures.
- Review supporting documentation for payroll processing.
- Review the monthly account reconciliations of payroll related accounts to identify unreconciled amounts.
- Conduct interviews with the payroll processor to complement understanding of how payroll is processed.
- The DLC consultant identified the following:
- The client’s personnel involved with the processing and recording of payroll did not have a thorough understanding of the payroll reports that were being generated by the payroll processor, specifically the inter-relationship of the various sections of the report, and the effect of payroll codes on funding amounts. This resulted in funding amounts that were not always accurate and had to be reconciled.
- Lack of proper controls to approve and communicate new payroll transactions to the payroll processor. Payroll was under the purview of Human Resources, however Human Resources did not always inform Finance of approval of new benefits that affected funding once processed.
- Lack of proper approvals to makes changes to the company’s payroll by the processor. The individual at the payroll processing company who was in charge of maintaining the client’s processing algorithm made programming changes without obtaining approval from the client or the client’s account representative, which caused errors in amounts that had to be funded.
- The payroll processor only had one individual responsible for coding of customer accounts, i.e. maintaining customer processing algorithms. As a result, this person was not always available for consultation, which resulted in a poor level of customer support.
- Reconciling items on payroll related general ledger account reconciliations were not always investigated and corrected in a timely manner.
- The DLC consultant was able to complete the project ahead of schedule and delivered the following:
- Detailed policies and procedures surrounding payroll transactions.
- Client personnel were trained on the contents of reports provided by the payroll processor, and how various codes affected funding amounts.
- A form was created for Human Resources to complete and forward to Finance for approval prior to communicating new payroll transactions to the payroll processor.
- Old reconciling items were researched, explained, and corrected in the general ledger.
- Recommendation was made to the client to change the payroll processor to a nationally recognized firm. Human Resources buy-in was obtained for this initiative.
- The client’s goal was to set itself apart from its competition and establish itself as a leading company in its industry through domestic and international expansion. The Company had been recently acquired by private equity and a new management team brought in to lead the Company.
- DLC and the client understood that one key to achieving their goal was ensure that open mid-management positions were adequately and competently staffed to drive the organization and provide leadership at the mid-management level. The client’s initial need was assistance with customer account reconciliation in preparation for the new accounts receivable manager that was to join the company. Additionally, the client was interviewing for a key finance leadership positions which would oversee the finance team, lead financial reporting and analysis, drive the budgeting process, and be key liaison with the private equity shareholders.
- Finally, DLC’s involvement occurred against the backdrop of an extended audit which had been delayed resulting from several complicated accounting issues associated with the recent acquisition and was taking a considerable amount of staff focus.
- The client had several key initiatives underway but was lacking the mid-level leadership to drive implementation. The search for key positions was taking longer than expected causing the delays and lack of leadership on key processes and new initiatives. An immediate need for management experience was required to assist in the resolution of several key matters such as:
- Current reconciliation of customer accounts to drive collections and cash flows, current reporting, and customer account activity.
- Management reporting packages had not been issued for several months, other period closes and reporting matters nearing.
- General finance team leadership was lacking as a result of the vacant finance director position.
- Implementation of a key budgeting and reporting tool was underway although limited system implementation experience existed within the finance team.
- DLC deployed an experienced consultant with exposure to dynamic environments in which the client was currently operating and with the ability to operate at all levels of management effectively. On the initial deployment, the consultant was to provide maximum assistance on the task provided and to identify additional areas where assistance was required. This required the consultant to:
- Quickly assess the state of the client’s accounts receivable records and processes
- Assess and identity the impact of open positions and responsibilities including activities to be completed.
- Establish a trusted working relationship with the CFO, Controller, and accounting and finance team personnel.
- Be flexible to the client’s needs and assist with the prioritization of projects.
- Provide leadership and experience as all levels and assignments assumed.
- Quickly gaining an understanding of the client’s business and overall needs was critical to being effective in supporting the client. Also, a willingness to act in leadership or subordinate roles as required was essential to establishing and maintaining successful working relationships in transitioning roles.
- As interim reporting manager, the consultant worked with finance team members to issue outstanding management and board reporting packages, including establishing the process for gathering supporting source documentation to be known as “the Book”, and transitioning the role to the newly hired reporting manager. As interim Finance Director the consultant led the finance team through continued issuances of monthly reporting packages, oversaw the initial implementation phases of the budget and reporting tool, and kicked-off of the 5 year strategic plan preparation and review – a precursor to the upcoming budgeting process. Transitioning the role of Finance Director identified an opportunity for continued consulting regarding hands-on development and implementation assistance for the company’s budget and reporting tool, working the software implementation consultants. The consultant’s knowledge of the company’s business and processes, and a willingness to act in a subordinate position further lead to assuming a role in the core finance team taking on divisional reporting and analysis responsibilities, working with divisional executives and leadership on reviewing period reporting results, and preparation of the strategic plan and budget using the new budget and reporting tool in development. The consultant was also involved in several additional projects including restructuring of the profit and loss statement presentation and analysis of discontinued operations, to name a few.
- DLC’s efforts resulted in the fulfillment of key interim roles and the successful transition of responsibilities to company personnel. The consultant’s deep knowledge of the company’s operations, processes and personnel became a vital asset to the finance team and the company in general resulting in a contiguous consulting relationship of over eight-months.
- Key successes included:
- Successful reconciliation and identification of processes and controls relating to customer accounts receivable.
- Successful assumption of duties and responsibilities for the Finance Director, reporting manager, and finance team manager roles allowing the client adequate time to seek the ‘right’ candidate to fulfill key open finance positions.
- Successful transition of duties and responsibilities to the Finance Director, reporting manager and finance team member roles.
- Development of a trusted advisor relationship to divisional executives and other finance team members, including a mentor resource for several colleagues.
- Critical contribution to a growing company in a dynamic environment requiring knowledgeable, competent and hands-on support.
- The Client, a private equity firm with approximately $600M of committed capital, was looking to implement a formal close and reporting process for their primary portfolio company. The portfolio company was in a particular industry group and the intention was that finance and accounting processes developed would be used as a guide for their other companies within the same industry. Stakeholder requirements included reducing monthly close and reporting time from 30+ days to 6 days, installing controls to ensure the close is conducted in accordance with GAAP and ensure the reliability of the data presented in the reporting package. In addition, the company needed a full time Controller who could oversee the accounting process and allow the CFO to spend more time managing issues at the Industry Holding Company level.
- DLC spent two weeks at the portfolio company to document the close and reporting process, create process documents and checklists, and implement excel-based process efficiencies that also reduced processing time for non-close related tasks. DLC identified opportunities to modify work assignments to better match staff skill sets and also identified experiential and managerial requirements for the Controller.
- DLC remained at the portfolio company to successfully implement the process improvements, assist with the hiring process, and train the new hire. As a result of our work, a more robust reporting package is provided to PE firm executives on a timely basis with a consolidation in place for audit purposes. The company CFO successfully transitioned his time to focus on higher-level issues for all portfolio companies in the relevant industry group.
- The Client, a Fortune 500 Company, entered into a long term agreement with a vendor to outsource and offshore accounting functions, specifically accounts payable and transactional accounting. The Client chose a staggered approach to implementing the shared service organization, selecting its $1B business unit as the first of three business divisions to transition its accounting functions.
- DLC spent two months developing detailed documentation of standard operating procedures for accounts payable and transactional accounting functions. Documentation included step by step instructions with system and supplemental schedule screen shots as well as references of key controls related to the processes. Following completion of documentation, the outsource partner’s team was brought to the business unit to shadow the process. DLC participated in leading trainings for the Client, both preparing materials and presenting the trainings for group and one on one sessions. DLC developed tests and certifications to ensure that process knowledge was effectively communicated to the outsource partner. DLC managed a “dry run” close as well as the first two months of the actual close process to ensure that the new team understood the process and met all internal deadlines.
- Accounts payable and transactional accounting were effectively transitioned to the outsourcing partner over a period of four months. Results continued to be closely monitored following the full transition. The Client was able to incorporate the lessons learned from the first business unit implementation to advance the transition to additional divisions.
Our client base represents a mix of Fortune 1000 companies and smaller high growth companies.
Our customer list includes leading companies in the following industries:
- Motion Picture & TV
- Cable & Satellite
- Video gaming
- Medical Technology
- Financial Services
- Business Services
- Engineering Services
- Consumer Packaged Goods
- Real Estate
Financial Planning & Analysis
Planning and analysis functions are critical to an accurate understanding of a company’s past performance and current situation. FP&A is the tool that enables management to navigate effectively to desired outcomes.
Finance departments often don’t have adequate staff to do the necessary FP&A, and getting approval for additional headcount is a struggle. But performing FP&A on a project basis, rather than via a staff position, can allow you to proceed on highest priority items immediately.
DLC consultants have expertise in:
- Annual budget preparation
- Quarterly re-forecasting
- Preparation of Annual Operating Plans and 5-Year Plans
- Sales and profitability analysis by customer, product line, channel or other variable
- Marketing and Advertising ROI evaluation
- Refinement of operations/manufacturing finance/costing methodologies
- R&D budgeting
- Forecasting model creation
- Pricing analysis
- Acquisition and divestiture analysis
- Capital Expenditure analysis and planning
Financial Accounting & Reporting
Maintaining an accurate, timely and effective system of financial reporting and controls is challenging for any company. Rapid growth, a merger, downsizing or other stresses can dramatically increase the difficulty of meeting this goal.
DLC can provide experienced, qualified senior-level consultants who will take immediate steps to put your financial reporting and control functions back on track. Whether you need to meet an urgent deadline, improve a process, or create an accounting department from the ground up, we can provide the help you need, when you need it.
- SEC Related Reporting Requirements: Forms 10-K, 10-Q, S-1, S-3, S-4
- SOX Compliance
- FASB Pronouncement analysis and implementation
- Post merger accounting integration
- Reporting package development
- Financial audit planning and coordination
- Consolidated financial statement preparation
- Re-engineering of company-wide reporting processes
- Streamlining of monthly closing processes
- Creation, review and documentation of internal control policy and procedures
- Internal Audit
- Risk Assessment
Financial Systems Implementation
Changes in financial systems can provide much-needed order and focus, or create organizational chaos. Proper levels of project support from the finance function can increase success rates, and ensure that outcomes are driven by user needs. The third-party, finance-based perspective that DLC provides can help keep implementations on track.
- Requirements definition in software selection process
- Functional lead in implementation of financial systems or product upgrades
- Serve as liaison between IT and Finance/Accounting functions
- Chart of accounts design and mapping
- Writing and execution of test scripts
- Financial report design using system or bolt-on reporting tools
- Identification and implementation of “quick hit” process automation
- Post-implementation troubleshooting and reconciliation
- Backfill of financial functional roles for client staff assigned to project teams
Interim or “Gap” Financial Management
Smart managers know that rushing to rehire when a key position opens up is usually a mistake. Using interim staffing allows the organization to function smoothly while a careful, un-pressured search is made for the right candidate.
Interim financial management from DLC can be applied to:
- Complete work during the search to replace a departed employee
- Absorb desk-level knowledge from exiting staff
- Gap new positions created by growth or re-organization
- Fill gaps created by merger, acquisition, or relocation
- Deal with reduced headcount until workload is reduced
- Evaluate job description/job content
- Document desk-level processes
- Identify and implement time- and work-saving opportunities
- Assess staff workflow efficiency
- Develop a current and accurate position description reflecting new processes
- Assist in training of newly hired staff
DLC consultants bring a critical, experienced eye to the interim management roles they occupy as they execute day-to-day responsibilities.
Process Documentation & Redesign
How comprehensive is your view of how you do what you do? What small improvements could be made that would yield big outcomes?
Smart companies ensure financial processes have been adequately captured and are regularly reviewed with an eye towards maintenance of internal controls, scalability of departmental operations, and overall process optimization.
- Capturing “as is” processes narratives and illustrative flow charting
- Making Best Practices-based recommendations for process improvements
- Implementation of recommended improvements
- Alignment of functional processes with capabilities of new systems
- Ensuring essential work flows are understood and sustained when an employee departs
- Monitoring process documents to ensure compliance with external regulation
In a competitive marketplace, the companies that accomplish the most in the shortest possible time frames are the big winners. How can you increase the odds you’ll come out on top?
Good project planning is essential to completing key initiatives on time and on budget. The challenge often is having sufficient internal bandwidth to cover both the everyday along with the “once-ever” requirements. “Going without” adequate leadership isn’t the answer.
- Analysis of overall requirements and identification of actionable project scopes
- Establishment of project plan, communication plan, timetable, and resource requirements
- Coordinating efforts of internal process owners/internal subject matter experts
- Identification of potential obstacles to on time/on budget objectives and pre-emptive strikes to circumvent
- On-going communication with all stakeholders
M&A Due Dilligence Report
Knowing what they need and how they need it – and being able to produce it with the required time frame – are often less – well defined in the negotiations.
Getting over the goalpost in an acquisition goes beyond the identification of the right target and establishing the means to make it happen. Being able to provide the type and depth of information – in the format most expedient – ensures lenders and acquirers have everything they need.
- Ensure availability of necessary historical operational data.
- Ensure completion of current and prior period financial statements as needed.
- Provide liaison point between auditors, investment bankers, and others in the Company.
- Construct forecasting models supporting short and long term decision making.
- Build functional processes-and align with systems tools – to ensure on – going lender requirements can be met accurately and expediently.
- Train Company internal employees to execute more sophisticated reporting and analytics than previously required.
- Analyze the “as-is” and make recommendations regarding people, processes, and systems supportive of the acquirer’s growth and profitability objectives.
Post Merger Financial Integration
The whole point was the “synergy” to be realized by combining Company A with Company B. How close did they ever come to getting there?
Frequently mergers/acquisitions fail to reap anticipated “combination upside”-or spend many years and dollars trying to make the pieces fit. Investing in the integration process-in the right ways, at the right times, with the right people-helps ensure that merger-related disorganization doesn’t become some other company’s competitive advantage.
- Ensure transactional recording, and monthly accounting and closing processes are aligned.
- Consolidate monthly, quarterly, and other periodic reporting processes and eliminate redundancies.
- Create new budgets and forecasts for combined entity.
- Ensure data flow is unimpeded through Company financial systems so all of the above can be readily and reliably accomplished day-to-day.
- Conduct operational and financial analyses significant for the new combined entity.
- Ensure internal staff has comprehensive understanding of go-forward requirements and any anticipated cultural shifts that will impact their individual roles and tasks.