E78 Helps Firm Improve Financial Performance to Create Leverage Prior to Sale 

Client Situation

To prepare for a planned sale transaction, the owners of a closely held firm needed to implement a transition for both the ownership and management of their company. With the goal of improving financial performance to ensure the highest proceeds from the transaction, the owners needed to strengthen their finance team and invest in critical systems and process improvements that would provide access to the data necessary to manage company performance.

Solution

A E78 executive worked closely with the owners and company executives to perform an assessment, make recommendations, and execute the following:

  • Perform personnel changes and realign responsibilities required to develop a finance team capable of supporting financial planning and analysis
  • Improve cash flow through better cash management and reporting
  • Develop a corporate plan and budget. Corporate and department priorities were defined as was a process for tracking progress and making adjustments as needed
  • Provide process improvements on a range of finance processes

Results

With focused reporting, broader accountability for financial results, and improved finance processes, the owners were able to more effectively manage the performance of the business.

  • Lower operating costs and an ability to actively manage spending enabled the company to deliver EBITDA margin of 10% in line with target – in spite of not achieving desired sales-growth targets
  • Improved and predictable financial performance has given the owners valuable leverage in transaction negotiations

Client Situation

To prepare for a planned sale transaction, the owners of a closely held firm needed to implement a transition for both the ownership and management of their company. With the goal of improving financial performance to ensure the highest proceeds from the transaction, the owners needed to strengthen their finance team and invest in critical systems and process improvements that would provide access to the data necessary to manage company performance.

Solution

A E78 executive worked closely with the owners and company executives to perform an assessment, make recommendations, and execute the following:

  • Perform personnel changes and realign responsibilities required to develop a finance team capable of supporting financial planning and analysis
  • Improve cash flow through better cash management and reporting
  • Develop a corporate plan and budget. Corporate and department priorities were defined as was a process for tracking progress and making adjustments as needed
  • Provide process improvements on a range of finance processes

Results

With focused reporting, broader accountability for financial results, and improved finance processes, the owners were able to more effectively manage the performance of the business.

  • Lower operating costs and an ability to actively manage spending enabled the company to deliver EBITDA margin of 10% in line with target – in spite of not achieving desired sales-growth targets
  • Improved and predictable financial performance has given the owners valuable leverage in transaction negotiations

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