Virtas Partners was engaged by a private equity firm to perform a Finance functional evaluation and to assist with business combination accounting, build out of the Finance & Accounting department, and interim CFO duties for a new aerospace and defense platform company.
Client Need
Our Private Equity client acquired a new platform portfolio company where there was an immediate need for a CFO as well an evaluation and optimization of all business functions. We dropped into the role of CFO, evaluated and optimized all departments, including people, processes and systems. During our progress we discovered that the ERP system was grossly underutilized with many activities performed outside of the system, creating inefficiencies, excess work, and a lack of transparency on controls. With the new ownership also came a need for significantly broader and deeper need for reporting, as well as a much deeper team.
Tailored Solutions
- Interim CFO duties, including monthly close, preparing and delivering monthly reporting packages, and support of first-year audit
- All departments evaluation, including evaluation of headcount and procedures for each and proposed rationalization
- Business combination support and purchase price accounting
- ERP Optimization and streamlining of internal processes to establish workflows and train the team to work ‘in-system‘, e.g., automated invoicing
- Developing a forecasting and budgeting method and template for PE and board reporting
- Developed monthly and annual budgeting, and weekly cash budgeting
- Developed closing statements for transaction and PE valuation reporting
- Established automation for scalability of the company
- Numerous Accounting / FP&A Activities: payroll evaluation, contract evaluation, coordination of the purchase price allocation, audit activities, onboarding the new hires in the accounting department, documenting and developing new policies and procedures, project analysis, etc.
Value to client
- CFO duties maintained and full-time replacement hired
- Accounting department built out including processes and monthly reporting packages
- Provided aerospace industry expertise to a PE that was in the beginning of its A&D investment journey
- ERP utilized to its full capabilities
Capabilities
- Office of the CFO
- Finance Transition
- ERP Project Management