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STREAMLINED INTEGRATION CYCLE TIME

OVERVIEW

AUSTIN, Texas – Newgistics, a leading provider of e-commerce services for top retailers and brands offers a true end-to-end solution, offering order fulfillment, parcel delivery and returns management. By seamlessly connecting every step in the process, Newgistics is able to provide merchants with a single view of their customers, products and orders across the entire order life cycle.


ACCELERATED INTEGRATION CYCLE TIME FOR NEW ACQUISITIONS FURTHERS FINANCIAL OPERATIONS

Client Needs: Quick Resource Turn-Around for M&A Project Management

Newgistics has a proven track record of identifying and acquiring complementary businesses as part of its growth strategy. With each acquisition comes new integration challenges. The challenge this time was to integrate a company with a different business model (professional services) that complements Newgistics’ core logistics business.

The Controller assigned to manage the integration resigned 2 weeks ahead of month-end close and year-end audit and tax work commencing. Newgistics needed a resource to (i) take over all Controller duties (daily accounting, weekly cash and revenue forecasting required by the PE owner, month-end close, consolidation), (ii) lead fulfilling all audit and tax requests, (iii) accelerate the integration and (iv) begin transitioning all close duties to Newgistics internal team by the following month-end close.

Newgistics was considering engaging an “Interim Controller” to plug in and help with the integration while they began a search for a permanent position, and to help with the knowledge transfer of information to the new position once hired.

The 9Gauge Solution: Streamline Financial Operations for Optimized Integration Process

With the urgent deadlines upon them, 9Gauge suggested & provided Newgistics with a team (as opposed to an individual) to address their needs. A team working in parallel focused on optimizing processes and accelerating the integration. This approach allowed for efficient (time and costs) delivery of the Client’s short-term needs while implementing changes for the long-term benefit of Newgistics. In 6 weeks, 9Gauge:

  • Delivered scalable financial models (RevRec, weekly cash forecast, consolidation) that aligned financial reporting of the new subsidiary’s US parent and 4 international subs with Newgistics and uncovered the link between late timesheets and missing weekly RevRec and cash forecast targets
  • Advised on process improvements to reallocate all Controller duties to the existing finance organization
  • Designed best-practices professional services metrics model to enable Newgistics with reconfiguring existing systems to better manage the new subsidiary

Benefits Achieved

Newgistics benefited from the 9Gauge team approach via:

  • Financial Reporting
    • Reduced cycle times from days to hours
    • Leveraging the now aligned financial reporting and low late time sheet occurrences to make timely and informed management decisions
  • Finance Organization: Roles & Responsibilities
    • Optimized Team and SubCo reporting
    • Recurring G&A cost synergies via the reduced cycle times which allowed for reallocated Controller duties to existing team members and backfilling with a more junior resource
  • MISC
    • Maintaining debt covenant compliance from timely audit and tax filings
    • Completed year-end audit & tax filings on-time (debt covenant compliance)

 

"9Gauge reduced the integration cycle time from over 6 months to 6 weeks.

Their experienced finance M&A team became an extension of our team, allowing us to remain focused on our core business during the integration and knowledge transfer process.

We will bring 9Gauge in Day 1 on future acquisitions."

−Ben Wade, CFO