Contractor – Business Transformation

Increased profit from 9.1% to 16.5%

7 Days

DSO

Days Sales Outstanding
decreased by 7 days

$500k

Working Capital

Working Capital adjustment of $500k in favor of our client/buyer

10x

Value

Provided previously missing visibility so management could make informed decisions going forward

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After acquiring the business, our client – the new owners -discovered that the financial function was not as represented pre-close. The ERP system was not properly utilized, resulting in limited visibility into ongoing performance and inadequate reporting to the lender. Additionally, the new owners faced significant concerns regarding the final resolution of working capital adjustments related to the acquisition of the business.

Key Results

Since Starting Work With Fintrepid

Strategic Support
- Quickly became a trusted advisor to the owners, providing a strategic voice, another set of eyes and ears and exposing previously unknown areas of risk for them.
- Built a strong relationship with the company’s lender and provided guidance on navigating compliance requirements to ensure ongoing adherence.
- Compiled and delivered multiple years of consolidated financial statements to the bank, despite most of the activity occurring prior to our engagement and established a go forward quarterly review cadence.
- Thanks to the improved information flow and communication, Fintrepid proactively addressed an underperforming quarter and communicated key details to the lender, preventing the need for an increased reporting or escalation.
Systems Expertise
- Leveraging expertise in ERP systems for the construction industry, identified weaknesses and gaps in the ongoing internal use and implemented corrective measures.
- Trained the company’s management team on utilizing ERP for construction accounting and reporting, while developing system processes for job costing, payroll, overhead, and more.
- Modified system reporting to ensure accurate WIP, job costing and progress reporting, providing management with reliable tools for ongoing use.

Complex Accounting Support

Implemented accounting processes to enable the company to maintain accurate accrual-based financials, allowing them to better manage their business with improved financial visibility.

HR Support

Assisted the company in drafting the job description, interviewing and hiring of a new controller. Provided transition support to onboard the new controller and familiarize them with the company’s accounting and ERP process.

Assistance with Legal Matters

Corrected the company’s financial statements to comply with the business purchase agreement and facilitated the client’s post-closing working capital true-up.