Case Studies

Financial and Operational Restructuring

A client company faced critical financial instability, primarily due to a significantly underreported debt. A detailed Financial Diagnostic Review uncovered a much higher figure than originally expected, pricing issues and other irregularities, raising concerns about the company’s solvency. In addition, their financial data was managed through manual, error-prone processes, resulting in delayed and inaccurate financial reporting. The finance process not functioning efficiently, with poor communication and task bottlenecks further complicating the situation.

Work Undertaken

FDS Consulting performed a Financial Diagnostic Review, uncovering the true debt levels and the underlying causes of reporting delays. New processes were implemented for the monthly day-to-day process, critical tasks were delegated to ensure broader accountability and streamlined operations.

The company’s financial reporting was overhauled, transitioning from quarterly to monthly reports, while a detailed Financial Models was introduced to enhance forecasting accuracy, and implement cashflow forecasting. Training for the finance team was also provided to improve reporting processes.

The pricing system for the business was also reconfigured as a lot of the work performed was loss making due to incorrect pricing policies for their customers. A full review of pricing was undertaken, and a new process implemented.

Outcome

These interventions allowed the business to gain a clearer understanding of its financial position and implement necessary restructuring to manage its debt load. The new monthly reporting system ensured more timely, complete and accurate financial data, enabling informed decision-making by management. After restructuring the finance team’s processes and enhancing their training, operational bottlenecks were eliminated, leading to a more streamlined and efficient financial management process.

With the pricing process rolled out and all customer prices updated, the business returned to profitability after a period of 6 months and the forecast is to remain so and grow, removing the risk of insolvency and enabling the business to meet all of its obligations.

Financial Health Restoration

A client company was experiencing financial distress despite strong revenue streams. High operational costs, coupled with inaccurate financial reporting, led to ongoing losses. The company’s management accounts lacked essential data like cashflow and balance sheets, making it difficult to assess its true financial health. Additionally, stock management practices were poor, leading to potential stock value discrepancies and increased operational risks.

Work Undertaken

FDS Consulting initiated a high-level review of the company’s financial statements, confirming the true financial position of the business. A detailed ground-up financial model and forecast was developed for the business, which was able to give accurate projections and cashflow forecasting on an ongoing basis to the company.  The finance team was trained and coached to produce monthly management reports that included both balance sheets and cash flow statements, emanating from the financial model.

To address stock management issues, with the operations team FDS conducted an in-depth analysis of stock level and procurement patterns by SKU, recommending improvements to the valuation and management of stock levels through to the sales process.

Outcome

Through the creation of the financial model and the support provided during the process, the Client now has an accurate, timely financial reporting system, enabling better financial oversight and decision making. The introduction of detailed cash flow management and stock valuation practices has reduced operational risks and improved profitability. The business is on track to regain financial stability and better equipped to make informed decisions regarding it’s future growth.

Finance Director/CFO Support

A client company was about to go through an investment process and needed support to free up the finance director to focus on this significant project. The remit for this project was to keep the business-as-usual operations of the finance teams and dependant departments up to date, so that the finance function was still servicing the business with up-to-date financial information.

Work Undertaken

FDS was responsible for managing the finance team, reporting processes and day to day running of the finance departments, while keeping the FD and management team up to date and informed. Weekly accounts were prepared for the senior leadership team and monthly accounts for management. Through regular catch ups with the FD while the process was ongoing, work and tasks to be completed were re-prioritised depending on how the business was performing and if any areas with the finance team and operations needed focus. Improvements and additional dashboards and reporting mechanism were created during the engagement to better improve transparency and oversight of finance function processes.

Outcome

For the duration of the engagement, the finance reporting was kept up to date, the finance team were engaged and benefited from updated processes and reporting. The FD was able to focus on the investment process for the business and know that the finance function was kept up to date

EI Funded - Digital Discovery Project

A client company was about to embark on starting the process of implementing a new operations management system, managing stock ordering and tracking, customer order management and tracking. In advance of doing these they wanted to really understand their processes and having previous experience of implementing different systems, wanted to ensure the right system for the business as they scaled. As an EI Client, they were able to avail of a Digital Discovery Grant for the project.

Work Undertaken

A detailed review of the current process and work practices was undertaken on the business. The sales and procurement process and workflows were reviewed and recorded. They were then assessed for efficiency and where improvements could be made, updates to these processes could be recommended. A scan of the various systems that were being used by the business, how they interacted with each other and impacted on not only the operations of the business, but also the client service delivery, was performed and documented.

Outcome

Ultimately an output report for the Client and EI was delivered, which documented the current state of process, systems, transaction flows and pain points. From this analysis and scanning the market for potential systems, a recommendation was made for a solution that best fits the business. Changes to process and workflows were also recommended and the reduction in number of systems being utilised. From this project, the Client know exactly what their requirement for a new system should be, thereby narrowing the scope and requirements for a better solution fit, which enable flexibility where needed and ease of scaling for customer operations.

Financial Model Development

Multiple client companies face the challenge of medium to long term financial planning and decision making. Clients were in need of a forecasting and cashflow financial model as they were required to provide information for debt and financing, new lending and working capital financing, invoice financing and to also determine if they had enough cashflow for fund expansion. Some Clients had monthly accounts to leverage off, but many did not, and the creation of a financial model was also going to deliver them solid financials on their business.

The process of creating the model also required the formulation of a 3 year strategy for the clients, as the direction of travel, new markets, new products or services needed to be captured.

Work Undertaken

A number of workshops are undertaken with the management team to roadmap the next 3 years, and starting with revenue work through trajectory of the business growth and challenges. This approach ensures two things, that all critical financial aspects are covered, and a clear robust 3 year strategy is developed and challenged during the process.  The model will undertake multiple draft reviews to ensure ground up accuracy and high level review.

Outcome

With a robust 3-year financial model in place, companies gain a clear roadmap for financial sustainability and growth. This model not only provides insight into future cash flow and profitability but also supports strategic decision-making. The company can confidently approach investors, lenders, or stakeholders with solid financial projections, improving their chances of securing financing and positioning themselves for success. Additionally, this model empowers management to make proactive adjustments based on real-time data, minimising financial risks.

Strategic Advisory for Market Expansion and Funding Raise

A client company was scaling rapidly and planning to expand into new international markets. However, they needed a strategy for securing the necessary funding to support this growth, particularly in regard to raising both equity and debt. Additionally, the company required guidance on how to position itself for successful expansion while managing increased operational complexities and financial risks associated with entering new markets.

Work Undertaken

FDS Consulting engaged with the client’s executive team to develop a specific strategic plan for market expansion and funding. A series of workshops were conducted to understand the company’s growth ambitions, financial needs, and market-entry strategies. We developed a detailed financial model, including revenue projections, P&L, cash flow forecasts, and balance sheet scenarios, that aligned with the company’s expansion plans. This model was important in determining the amount of capital required and the mix of debt and equity that would be most advantageous. Additionally, FDS advised on structuring the funding approach, including identifying potential investors and lenders, and refining the company’s pitch deck for funding rounds.

Outcome

The company successfully raised the required capital, including a mix of debt and equity, to fund its market expansion. With the financial model in place, the business was equipped with a clear roadmap that guided strategic decision-making and ensured financial stability. The detailed projections provided potential investors and lenders with the confidence needed to support the business. As a result, the company expanded into two new international markets, scaled its operations efficiently, and is now positioned for sustainable long-term growth.