The Client
This investor-backed company is using a buy-and-build strategy to rapidly grow in its sector by acquiring a number of owner-managed businesses.
The Requirement
The pace of acquisition for this buy-and-build company is high. With three transactions close to completion, their immediate requirement was interim CFO support and a right-hand person for the CEO to get the transactions across the line. Additionally, to support the budgeting and forecasting process and manage stakeholder reporting.
Relevant Artice | In a crisis, a strong CEO-CFO relationship is paramount
The Solution
The Isosceles solution was:
- Provide an interim CFO for buy-and-build company to help them through the early stages of each acquisition and implement a best-practice finance structure into the Group until a full-time CFO can be appointed.
- Support the CEO with the acquisition pipeline at an accelerated pace.
- Integrating the acquired businesses to produce monthly consolidated group accounts required Isosceles to develop an Excel-based template with formulas to take Trial Balance data and create the consolidated group accounts.
- Ensure that every board meeting is informed with a full board reporting pack.
- Meet the investor’s enhanced reporting needs.
Why Isosceles?
An existing client referred Isosceles to this buy-and-build company. They have over 20 years of experience supporting rapidly growing tech companies and have an excellent reputation in the tech market and the investor community.
Their proposed interim CFO was a good fit for the buy-and-build company. Hence, they could start immediately. Also, the unique support of an entire team of finance professionals ensured the smooth financial integration of all acquisitions.
The Challenges
The biggest challenge is the speed with which the acquisitions are happening. As a result, the CEO needs his team (including a full-time CFO) on board now, but this takes time.
Additionally, owner-managed businesses tend to have their own ways of managing their finances and reporting. They don’t often grasp what the numbers mean. If revenue is growing, they must let go of the old ways of doing things and embrace the changes.
With individual finance functions and finance systems, the greatest finance challenge is getting consistent data by working day ten to allow Isosceles to meet the group consolidation and reporting deadlines imposed by the stakeholders.
The Results
- The Group has successfully acquired five companies and is on target to complete three or four more by the end of 2023.
- An accurate consolidated set of management accounts is produced by working day ten each month.
- The board reporting pack was well received and arrived on time.
- Finally, investor reporting is managed to the investor’s deadline using their template.
Author’s Biography
This article was written with contributions from Bhavini Tanna, Fractional CFO from iFD.
Connected with Bhavini on LinkedIn.
(Image Source: Shutterstock)