Post Purchase Completion Financial and Business Improvement project in £70m PE Pharma Manufacturer.
Background
Appointed by Exec Chair and Private Equity Owner on day of completion of the purchase of a UK subsidiary of a large US corporate. Business was profitable but widespread complacency existed within the management approach and processes.
Key members of the Executive Team including FD exited as part of purchase and CEO also displaced a few weeks into deal.
Finance function in the business was isolated and lacking the skills and capability required.
Business lacked cohesive and fact based decision making processes and reporting was largely ineffectual and financial performance hence appeared erratic.
IT systems not fit for purpose despite being a large scale system with major support cost.
Significant opportunities existed in the Business for efficiencies and improvement.
Key Challenges
Understanding financial performance in a business with poor controls and inconsistent reporting and limited benchmarks.
Rapid need to establish credible reporting pack for Bank and PE.
Urgent need to establish bottom up Budget process and output.
Post completion obligations surrounding Banking and Vendor requirements.
Need to assess and where necessary restructure Finance Function.
Establish the role of Finance within the Business and set expectations and perceptions of the way it would interface.
Establish credibility with PE House and the 4 bank syndicate.
Ensure certain stand alone business capabilities were established that were previously managed within the American parent.
Main Actions
Identified in conjunction with Chair the critical focus projects.
Dealt with the major and time critical issues around suppliers and customers, new product development, financial controls and commitment.
Established efficiency projects around manufacturing and procurement.
Instigated review of IT system and options around upgrades or re-implementation.
Brought in high quality interim management capacity to turn around non performing areas.
Negotiated ring-fenced fighting fund with PE and Bank (outside of covenants) to facilitate Organisational Turnaround and fund key area of improvement and support.
Laid out clear ground rules for Decision Making and Authorities within Business and the role of Finance Department within that.
Main Results And Achievements
Delivered detailed bottom up Budget alongside a Business review to Bank syndicate within first 60 days.
Established Interest rate hedging facilities and FX exposure review.
Delivered successful migration from parent in IT, Legals, Audit and Tax etc.
Finalised Purchase consideration, delivered annual and completion accounts and Fair Value review.
Delivered new control levels, daily cash flow , kpi schedules and 12 month rolling forecast.
Finance function clearly established in its correct role within the business along with a restructure of it’s role, capabilities and people.
Established new ERP system identification and implementation project.
Delivered Board and Bank Pack owned by business and reviewed by functions prior to publication.
Mentored Exec members on expectations of their role and need of PE owner.