Virtas Partners was engaged by a private equity firm to perform a functional evaluation and assist with business combination accounting, build out of the accounting and finance department and interim CFO duties for a platform acquisition.
Client Need
Our Private Equity client acquired a new platform portfolio company and needed to fill the CFO role and wanted to evaluate and develop an optimization plan for key business functions. We served as Interim CFO, evaluated and developed optimization plans for key departments, including assessment and enhancement of people, processes and systems. During our assignment, we identified opportunities to better utilize the ERP system to reduce inefficiencies and enhance controls over existing work-arounds executed outside of the established processes and technology platform. We also identified gaps in the Finance team’s capabilities, and designed ways to enhance the information reporting for the expanded requirements of the investors and other constituents.
Tailored Solutions
- Executed Interim CFO duties, including monthly close, vendor approvals, and monthly reporting packages.Identified new sources of synergies and cost
- Evaluated Finance department people, process and systems and developed an optimization plan.Created a cross-functional integration roadmap
- Identified ERP optimization actions and implemented remediations to streamline processes, train and transition the workforce to work ‘in-system, e.g., automated invoicing, production scheduling, etc.Developed workstream/functional charters, operating models, milestones and detailed task-level workplans
- Enhanced the forecasting and budgeting process and content to meet the needs of the new investors and creditors.
- Executed numerous accounting and controllership activities, including supporting the audit of the employee 401k plan, allocation of the purchase price for the opening balance sheet and other first year audit activities, onboarding the new hires in the accounting department, etc.
- Performed planning and financial analysis to help identify value opportunities in price increases and margin protection, scrap costing, etc.
Value to Client
- Stabilized and executed CFO duties and transitioned to newly hired CFO
- Enabled returns through margin protection, pricing support, and reduced inventory through better minimum order quantities.
- Identified focused enhancements for the Accounting Department to implement including processes, dashboarding and monthly reporting packages.
- Optimized more leverage of the ERP technology to reduce manual effort and risk