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
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
- Maintaining debt covenant compliance from timely audit and tax filings
- Completed year-end audit & tax filings on-time (debt covenant compliance)