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Case Study

SaaS Company Transforms Financial Reporting & Cash Flow Management with DLC

Before DLC

  • Outdated and slow financial reporting (1 to 2 days to generate reports) 
  • Limited cash flow visibility, leading to liquidity concerns 
  • Lack of efficient budget and forecasting models across departments and entities 
  • Challenges meeting lender covenants and investor expectations 
  • Ineffective communication with private equity board members 
  • No reliable 13-week cash flow model 

After DLC

  • Instant, real-time financial reporting with drill-down capability (1 to 2 minutes refresh) 
  • Comprehensive cash flow models to ensure liquidity and maintain lender confidence 
  • Streamlined budget and forecast models across departments, entities, and countries 
  • Covenant compliance through forecasting tools with contingency and sensitivity analysis 
  • Strengthened investor relations with regular board updates and financial presentations 
  • Successful line of credit (LOC) draw approval and improved financial planning processes 

 

Project Overview 

A $100M SaaS company recently engaged DLC to build out the FP&A infrastructure and assist the CFO with cash flow management, covenant compliance, and investor relations.  

DLC was selected due to our expertise in financial infrastructure development, reporting accuracy, and strategic guidance. 

Business Challenge

The company faced several challenges related to cash flow, budgeting, and compliance, which impeded financial visibility and investor confidence. The financial reporting and processes were slow and outdated, taking 1 to 2 days to produce reports and failing to deliver actionable insights.  

Additionally, the company required more efficient budget and forecast models to support decision-making across multiple departments, entities, and countries. Loan covenant compliance was also a pressing concern, and the company needed assistance in improving cash flow visibility to maintain lender relationships and meet board expectations. 

Approach

DLC worked closely with the CFO and management team to build financial processes and models that improved operational efficiency and provided real-time visibility.  

Key actions included: 

  • Management & Financial Reporting: Designed and implemented new reports for the executive team, P&L owners, and investors. The new reporting allowed instant drill-downs to GL detail, comparison views (actual vs. budget/forecast/prior year), and reduced delivery time from 1 to 2 days to 1 to 2 minutes via a refresh button. 
  • Budget & Forecast Model: Designed and built a comprehensive budget and forecast model which enabled detailed planning by vendor, headcount, and provided detailed metrics across approximately 15 departments, four entities, and six countries. The model allowed for departmental involvement and fed data directly into the DataRails FP&A tool for seamless reporting. 
  • Cash Flow Model: Built a three-statement model (P&L, Balance Sheet, Cash Flow) to forecast cash position and produce budgeted Balance Sheets and Cash Flow statements. 
  • Covenant Reporting & Sensitivity Analysis: Created a tool to calculate and forecast loan covenant compliance, including contingency and sensitivity scenarios. 
  • 13-Week Cash Flow Model: Rebuilt the company’s 13-week cash flow model to ensure liquidity and avoid cash shortfalls. 

DLC also facilitated regular communication with private equity board members to present cash flow updates and develop strategies to manage lender covenants. Additionally, DLC built a lender presentation deck to secure investor approval for a line of credit (LOC) draw and developed a Q1 board meeting deck. 

Results

The company now benefits from faster, more accurate reporting, and improved financial visibility.  

Key achievements include: 

  • Streamlined Reporting: New management reports allow real-time refreshes and insights, enhancing decision-making. 
  • Improved Planning: The budget and forecast model enables more accurate forecasting, ensuring accountability across departments and entities. 
  • Cash Flow Management: Rebuilt cash flow models provide greater liquidity oversight and alignment with lender requirements. 
  • Covenant Compliance: DLC’s tools and strategies ensured successful covenant compliance and investor confidence. 

DLC continues to support the client with financial reporting, cash flow forecasting, and board communications.