CEO Advisory Services
CEO advisory services consist of providing strategic guidance, insights, and expertise to CEOs; helping them navigate complex business challenges, make informed decisions, and achieving their organizational goals.
As a CEO advisor, my goal is to serve as a trusted confidant and provide external perspective for the CEO, giving objective analysis, strategic thinking, and industry knowledge, which may include guidance on business strategy, corporate governance, leadership development, organizational change, risk management, and market trends.
Interim CEO Services
An Interim Chief Executive Officer (CEO) appointment allows me to temporarily assume the role of CEO in an organization for a defined period. Interim CEOs are experienced professionals who step into the leadership position to provide stability, strategic guidance, and operational oversight during times of transition, crisis, or when a permanent CEO is not immediately available.
These services can include --
Leadership and Management -- Assuming overall leadership responsibility for the organization, including managing the executive team, making strategic decisions, and overseeing day-to-day operations.
Strategic Planning and Execution -- Developing or refining the organization's strategic plan and ensuring its successful execution, which can include assessing the current state of the organization, identifying areas for improvement, and developing strategies to achieve the organization's goals and objectives.
Stakeholder Management -- Engaging with various stakeholders, including board members, employees, customers, investors, and partners. I can establish effective communication channels, build relationships, and address any concerns or issues that may arise during my tenure.
Crisis Management -- Handling critical situations or crises that require immediate attention and resolution. My career includes having managed difficult situations, making tough decisions, and implementing crisis management strategies to mitigate risks and protect the organization.
Talent Management -- Assessing the organization's talent needs, overseeing recruitment and hiring processes, and providing guidance and mentorship to key executives and employees.
Financial Oversight -- Monitoring and managing the organization's financial performance, ensuring appropriate budgeting, expense control, and financial reporting.
Transition Planning-- Collaborating with the board of directors and other stakeholders to plan for the transition to a permanent CEO.
CFO Advisory Services
Chief Financial Officer (CFO) Advisory Services are specialized consulting services provided to CFOs and other finance executives. These services aim to assist CFOs with managing financial operations, optimizing financial performance, and addressing complex financial challenges. As a CFO advisor, I have expertise in finance, accounting, and strategic financial management and can offer guidance on various areas such as financial planning and analysis, risk management, capital allocation, financial reporting and compliance, mergers and acquisitions, and cost optimization. Working closely with the CFO, I can help provide financial data, strategic insights, financial strategies, and help drive financial decision-making to support the organization's overall financial health and success.
Interim CFO Services
Interim CFO services refer to the temporary appointment of a Chief Financial Officer (CFO) to fulfill the role and responsibilities of the CFO position on an interim basis. Interim CFOs are experienced financial professionals who are brought in to provide leadership, strategic guidance, and financial expertise to organizations during transitional periods or when there is a temporary absence of a permanent CFO.
Interim CFO services typically involve --
Financial Leadership -- Assuming the responsibilities of a CFO, including overseeing financial operations, managing financial risks and providing strategic financial guidance to the organization's management team and board of directors.
Financial Planning and Analysis -- Conducting financial analysis, forecasting, and budgeting to support strategic decision-making and ensure the financial health of the organization. This includes assessing financial performance, identifying areas for improvement and recommending appropriate financial strategies.
Cash Flow and Working Capital Management -- Managing cash flow and working capital to ensure the organization has sufficient liquidity for its operations. This involves monitoring cash flow, optimizing working capital cycles and implementing strategies to improve cash flow management.
Financial Reporting and Compliance -- Overseeing financial reporting processes, ensuring compliance with accounting standards and regulatory requirements, and providing accurate and timely financial statements to stakeholders, including investors, lenders, and regulatory authorities.
Stakeholder Management -- Interacting with key stakeholders, such as investors, lenders, auditors, and board members, to provide financial insights, address concerns, and maintain strong relationships.
Transition and Succession Planning -- Assisting in the transition process to onboard a permanent CFO or providing guidance on succession planning for the CFO role.
Fractional CFO Services
Fractional CFO services refer to the practice of engaging a part-time or fractional Chief Financial Officer (CFO) to provide strategic financial leadership and expertise to organizations on a flexible and as-needed basis.
Fractional CFO services typically involve --
Financial Strategy and Planning -- I can develop and implement financial strategies aligned with the organization's goals and objectives. This includes financial forecasting, budgeting, and long-term planning to support growth and profitability.
Financial Analysis and Reporting -- Conducting in-depth financial analysis to provide insights into the organization's financial performance, trends, and key metrics. I can create accurate and timely financial reports for management, board members, and stakeholders.
Cash Flow Management -- Monitoring and managing cash flow to ensure the organization has sufficient liquidity for its operations. I can manage cash flow forecasting, working capital planning, and cash flow optimization strategies.
Financial Operations and Systems -- Assessing and improving financial processes, systems, and controls to enhance efficiency, accuracy, and compliance. I can lead or assist with implementing or upgrading financial systems and technologies.
Risk Management -- Identifying and managing financial risks, including market risks, operational risks, and regulatory compliance risks. I can develop risk mitigation strategies and internal controls.
Financial Stakeholder Management -- Engaging with key stakeholders, such as investors, lenders, auditors, and board members, to provide financial insights, address concerns, and maintain strong relationships.
ERP Implementation Services
ERP implementation services refer to the process of deploying and setting up an Enterprise Resource Planning (ERP) system within an organization.
ERP implementation services aim to streamline business processes, improve efficiency, and provide accurate and real-time information for decision-making.
I have implemented 35 fully integrated ERP systems, 20 of which contained fully integrated manufacturing costing capability.
I define ERP as a tool designed to process orders. They integrate and manage various aspects of a company's operations, including finance, human resources, supply chain, inventory, and customer relationship management.
ERP Implementation services can include --
Project Planning and Management -- Developing a project plan, setting clear objectives and timelines, and managing the overall implementation process.
Business Process Analysis and Customization -- Assessing the organization's existing processes, identifying gaps, and customizing the ERP system to align with specific business needs. This may involve configuring modules, defining workflows, and creating user interfaces.
Data Migration -- Transferring and migrating data from existing systems to the ERP system, ensuring data accuracy, integrity, and consistency throughout the migration process.
System Configuration and Setup -- Configuring the ERP system based on the organization's requirements, including defining organizational structures, user roles and permissions, and system settings.
Training and Change Management -- Providing training and support to users to ensure they can effectively use the new ERP system. Change management activities may include communication, stakeholder engagement, and user adoption strategies.
Testing and Quality Assurance -- Conducting rigorous testing to validate the system functionality, data integrity, and integration with other systems. This ensures that the ERP system performs as expected and meets the organization's needs.
Post-Implementation Support -- Providing ongoing support and maintenance services after the ERP system goes live. This includes addressing issues, monitoring performance, and assisting with system enhancements or upgrades.
ERP Integration Services
The classic definition of ERP integration refers to the process of connecting and integrating an Enterprise Resource Planning (ERP) system with other software applications, databases, or third-party systems within an organization.
My definition differs slightly …
Integration also includes the process of merging existing or new business processes with the ERP system requirements.
Some of the reasons ERP systems fail or function at marginal capabilities result from:
Bad switch settings
Business processes that are not congruent with system settings
Failure to properly manage integration between the modules.
Bad account mappings
Overly complex system design
Some of the symptoms of a poorly integrated ERP system are:
Long close periods
Large volumes of journal entries
Control accounts that don’t match subsidiary records, i.e., inventory per the general ledger doesn’t agree with the inventory balance from the inventory module
When outsourcing ERP integration services, organizations engage external professionals or specialized consulting firms to assist in seamlessly integrating the ERP system with core business processes. These services typically include--
System Analysis and Requirements Gathering -- Assessing the existing systems and infrastructure, understanding integration requirements, and identifying the data and processes that need to be integrated with the ERP system.
Integration Design and Planning -- Developing an integration strategy and designing the integration architecture to ensure smooth data flow between the ERP system and other systems. This involves defining data mapping, data transformation, and synchronization processes.
Data Migration -- Transferring and migrating data from existing systems to the ERP system, ensuring data accuracy, integrity, and consistency throughout the migration process.
Testing and Deployment -- Conducting comprehensive testing to validate the integration and ensure proper functionality. Once tested, the integration solution is deployed and implemented across the organization.
ERP integration services aim to streamline business processes, improve data accuracy and consistency, enhance operational efficiency, and provide a unified view of data across the organization. Outsourcing these services allows organizations to leverage the expertise of professionals with experience in ERP integration, ensuring a well-planned and successful integration process.
I am experienced with the following ERP systems …
Macola Epicor NetSuite
Dynamics PDI SAP
OpenPro Syspro Sage
JD Edwards Acumatica RedPrarie
Quickbooks Navision Job Boss
CRM Implementation Services
CRM implementation services refer to the process of deploying and setting up a Customer Relationship Management (CRM) system within an organization. CRM systems are software solutions that help manage and optimize customer interactions, sales processes, marketing campaigns, and customer service activities.
CRM differs from ERP in that CRM doesn’t have a defined rule set. Without a pre-determined set of rules, the users are operating in an open environment. CRM outcomes are typically limited only by the user’s lack of vision and/or specific set of defined objectives.
When outsourcing CRM implementation services, organizations engage external professionals to assist in the successful deployment of the CRM system. These services typically include--
Requirements Gathering and Analysis -- Collaborating with the organization's stakeholders to understand their specific CRM needs and objectives. This involves assessing existing processes, data requirements, and integration points with other systems.
System Configuration and Customization -- Configuring the CRM system based on the organization's requirements. This includes setting up user roles, defining data fields and workflows, customizing reports and dashboards, and integrating with other systems or databases.
Data Migration -- Transferring and migrating customer data from existing systems or sources into the CRM system. This ensures that historical customer information is available within the new system.
Integration with Other Systems -- Integrating the CRM system with other relevant systems such as marketing automation tools, email platforms, customer support systems, or ERP systems. This enables seamless data flow and synchronization between systems.
User Training and Adoption -- Providing training to users on how to effectively use the CRM system and maximize its capabilities. This includes training on data entry, reporting, automation features, and best practices for customer management.
Testing and Quality Assurance -- Conducting thorough testing to ensure the CRM system functions correctly, data is accurately captured and synced, and integrations work as intended. This includes validating workflows, data validation rules, and system performance.
Post-Implementation Support -- Providing ongoing support and maintenance services after the CRM system goes live. This includes addressing user questions or issues, monitoring system performance, and assisting with system enhancements or upgrades.
CRM systems aim to enhance customer relationship management, improve sales and marketing effectiveness, and streamline customer service processes.
Manufacturing Cost Accounting Services
Cost accounting involves the measurement, analysis, and reporting of costs associated with the production of goods or services within an organization.
I have implemented 20 fully integrated manufacturing cost systems.
Cost accounting capability is normally included with any industry standard ERP system. Other than determining department and work center cost manufacturing rates, most cost accounting activity is automatically recorded by the ERP system, which includes, but not limited to, departmental absorption, efficiency variances and purchase price variances. The key to having a robust cost accounting function is, therefore, contingent upon the efficacy of your ERP setup.
Should you decide to work with me to outsource your cost accounting function, we will first “perfect” your ERP setup, which can include general ledger modification, department and/or work center definition and setup, calculating your departmental and work center rates. Once properly set up, the principal remaining process is to properly report on cost accounting results.
Outsourcing your cost accounting requirements will, in this context, cost far less than retaining an in-house cost function.
Other costing services which can be provided include --
1. Cost Data Collection -- Gathering relevant cost data from various sources within the organization, such as inventory records, production reports, and expense records. This is best used in the determination of production rates.
2. Cost Allocation and Apportionment -- Allocating and apportioning costs to specific products, services, projects, or departments using appropriate allocation methods and cost drivers.
3. Cost Analysis -- Analyzing cost data to identify cost drivers, understand cost behavior, and assess the profitability of different products, services, or business segments.
4. Inventory Valuation -- Determining the valuation of inventory, including the calculation of costs of goods sold (COGS) and the valuation of ending inventory using methods such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).
5. Cost Reporting -- Generating regular reports that provide insights into the cost structure, cost variances, and cost trends within the organization. These reports may include cost of production, cost of sales, cost of services, and other relevant cost metrics.
Outsourcing your cost accounting services can offer several benefits, including cost savings, access to specialized expertise, scalability, and the ability to focus internal resources on core business activities. It allows organizations to ensure accurate and comprehensive cost accounting practices while freeing up internal resources to focus on strategic initiatives and core competencies.
Forensic Accounting Services
Forensic accounting is primarily focused on uncovering, analyzing, and presenting financial information which could be used in legal disputes, fraud investigations, or other financial irregularities.
Forensic accounting is challenging because it requires a deep understanding of underlying accounting methods and processes. More importantly, it requires the forensic accountant to be intellectually curious. The forensic accountant must “see” the irregularity which has, by definition, been obscured. The tool that I use is that of asking the “Rich Question”.
During my career I have uncovered numerous accounting irregularities, some of which were blatant fraud. Some examples include,
After being engaged as Turnaround GM/CFO for a manufacturing concern, I noted that inventory had grown substantially after the company had been acquired one year earlier. This inventory growth occurred in an environment where the company was 16 weeks late on 3-week delivery commitments. The “Rich Question” was … How could a company that is significantly delinquent on customer orders grow inventory? During my investigation, I determined that previous management obtained large quantities of scrap inventory from abandoned manufacturing sites and transported it to the manufacturing facility; placing it into inventory at full value. Management was attempting to obfuscate the extent of ongoing operating losses by fraudulently inflating inventory. It was ultimately determined that ~40% of inventory was scrap and valueless. It is not possible to quantify the effect this had on manufacturing processes because the understanding between a “good” and “bad” part became very blurred.
One month following the audit completion of a multi-billion dollar business to business distributor, my firm was engaged to transform the client’s accounts payable department. I was assigned to the engagement. During my systems review, I noted that the client had substantial amounts of “old” received but not invoiced payables on their books. For example, the sixth line on the first page of a 600-page report indicated that a vendor had delivered $100,000 of goods six months earlier and never invoiced (and apparently not been paid) for the delivery. Further down on the same page was another $80,000 received and not invoiced/paid dating 8 months earlier. A quick summary of the possible accounts payable overstatement included in the report indicated a value of between $3,000,000 and $6,000,000. Given that the audit was completed only one month earlier, this appeared to be a possible audit error. After discussing the matter with the Sr. Audit Manager, we met with the client’s Controller to discuss the issue. After revealing my findings, the Controller got up, closed the door and said, “Well … you’ve got me”. He then confessed to having probably paid these “old” receipts with manual checks but purposefully not have credited the payments against the received, not invoiced report. He then confessed to periodically adjusting the “old” amounts into income; whenever the Company needed additional EBITDA.
In both cases, and in most forensic matters, the key takeaway fraud might be suspected if a series of numbers doesn’t make sense. Always keep an open mind.
Forensic accounting services typically include --
Fraud Investigations -- Conducting investigations to identify and analyze fraudulent activities within an organization. This may involve analyzing financial records, transactions, and other relevant data to uncover evidence of fraud, embezzlement, or other financial crimes.
Financial Statement Analysis -- Reviewing and analyzing financial statements to detect potential irregularities, misstatements, or inconsistencies. This may involve identifying accounting errors, manipulation of financial records, or deliberate misrepresentation of financial information.
Asset Tracing and Recovery -- Tracing and identifying assets that may have been concealed or misappropriated. Forensic accountants use techniques and tools to locate hidden assets, trace the flow of funds, and assist in the recovery of assets in cases of fraud or financial misconduct.
Business Valuation and Dispute Resolution -- Providing expert opinions and analysis regarding the value of a business or financial interests in the context of legal disputes, such as shareholder disputes, matrimonial disputes, or business dissolution. Forensic accountants may also assist in resolving financial disputes through negotiation, mediation, or expert testimony in court.
Litigation Support -- Assisting legal professionals in litigation by providing financial analysis, expert reports, and expert witness testimony. Forensic accountants help attorneys understand complex financial issues, evaluate damages, and present financial evidence in a clear and understandable manner.
Compliance and Regulatory Investigations -- Assisting organizations in conducting internal investigations to ensure compliance with laws, regulations, and internal policies. Forensic accountants can help uncover and address potential non-compliance issues, assess financial risks, and develop effective control systems.
Due Diligence -- Conducting financial due diligence in mergers and acquisitions or other business transactions. Forensic accountants analyze financial records, identify potential risks, and assess the accuracy of financial information provided by the target company.
Forensic accounting services play a critical role in uncovering financial irregularities, providing accurate financial analysis, and supporting legal proceedings or internal investigations.
Turnaround Services
Turnaround services are aimed at helping struggling companies recover and regain stability and profitability.
The two most important elements of a turnaround are: (1) Stopping the bleeding, e.g., Stabilizing cash flow and concurrently determining break-even, and (2) begin managing operations to the calculated break-even.
Calculating the break-even can be both simple and yet challenging depending upon the definition and understanding of fixed versus variable costs. Once costs are segregated as either fixed or variable, calculating break-even is straight forward.
Once “stabilized” the turnaround focuses on performing a comprehensive analysis of the company's financial performance, operational processes, market position, and competitive landscape. Various strategies, such as cost reduction measures, restructuring debt, improving cash flow management, renegotiating contracts, optimizing operations, and enhancing overall business efficiency. Other turnaround services may include guidance on leadership and organizational changes, stakeholder management, and crisis communication.
The goal of turnaround consulting is to help the company stabilize its financial situation, improve operational performance, restore investor confidence, and position the organization for long-term success and sustainability.
Family Business Consulting
Family Business Consulting services are designed to address the unique challenges and dynamics that arise in family businesses and assist in developing strategies for long-term success, effective succession planning, and maintaining family harmony.
Multi-generational business face unique challenges. The must deal dealing with family dynamics while maintain continuity of the organization. In some extreme cases, family issues can compromise the Company’s performance.
Family business consultants work closely with the family members and stakeholders involved in the business to provide guidance, support, and expertise in various areas. These services typically include --
Succession Planning -- Assisting in the development and implementation of a succession plan to ensure a smooth transition of leadership and ownership to the next generation. This may involve identifying and developing potential successors, creating governance structures, and facilitating family discussions around succession.
Family Governance -- Helping establish and maintain effective family governance structures and processes. Family business consultants assist in defining roles and responsibilities, establishing communication protocols, and facilitating family meetings to address conflicts, make decisions, and align family values with business goals.
Conflict Resolution -- Mediating and resolving conflicts that may arise within the family or between family members and the business. Family business consultants facilitate open and constructive communication, help manage emotions, and assist in finding mutually acceptable solutions.
Strategic Planning -- Assisting in the development of strategic plans that align the family's goals and values with the business's objectives. Consultants help identify growth opportunities, evaluate market trends, and develop strategies to sustain and expand the family business over the long term.
Financial Management -- Providing guidance on financial management practices specific to family businesses. This may include financial analysis, budgeting, cash flow management, and developing financial systems that integrate business and family needs.
Leadership Development -- Supporting the development of future leaders within the family business. Family business consultants provide coaching, mentoring, and leadership training to prepare the next generation for their roles and responsibilities.
Business Performance Improvement -- Assisting in identifying and implementing strategies to improve the overall performance and competitiveness of the family business. Consultants may conduct operational assessments, analyze market opportunities, and recommend process improvements or organizational changes.
Estate Planning -- Collaborating with legal and financial professionals to develop comprehensive estate plans that protect the family's wealth and facilitate a smooth transfer of assets.
My services aim to foster family cohesion, enhance business performance, and ensure the long-term sustainability of the family business. My counsel has helped many family owned businesses navigate the complexities of family dynamics, governance, and succession, ultimately facilitating the successful continuation of the business across generations.
Litigation Consulting
Litigation consulting services refer to specialized advisory and support services provided in the context of legal disputes or litigation. Services previously provided included financial analysis, expert opinions, and litigation support to attorneys, their clients, and the court.
Some case examples in which I participated include,
Successfully developed reporting systems to enable a Plaintiff to show that $92 million paid in legal fees were “reasonable”.
Initiated and recovered construction claims exceeding $4 million.
Created a 400 page case chronology for a $8 million commercial litigation. Complete documentation including discovery results, emails, text and phone messages. The chronology has saved the client an estimated $250,000 in legal expenses to day.
My services will assist legal professionals in understanding complex financial matters, evaluating damages, and presenting financial evidence in a clear and credible manner.
These services typically include --
Financial Analysis -- Conducting detailed analysis of financial records, statements, transactions, and other relevant data to identify and understand the financial aspects of the case. Such analysis provides insight into financial information, identify discrepancies, and assess the financial implications of the legal dispute.
Expert Testimony -- Providing expert opinions and testimony in court or other legal proceedings. I can offer my expertise and professional judgment to explain complex financial concepts, interpret financial data, and provide objective analysis to support the client's position.
Damage Assessment -- Evaluating and quantifying financial damages or losses incurred because of a legal dispute. I can calculate economic damages, assess the financial impact of alleged wrongdoing, and provide comprehensive reports and expert testimony on the quantification of damages.
Business Valuation -- Conducting business valuations to determine the worth of a business or certain assets in the context of the legal dispute. I can apply recognized valuation methodologies and standards to assess the value of the business or assets for purposes such as marital dissolution, shareholder disputes, or breach of contract cases.
Financial Fraud Investigations -- Assisting in the investigation of financial fraud or misconduct. I can use my accounting skills and knowledge to uncover financial irregularities, analyze financial records, trace funds, and provide evidence of fraudulent activities.
Forensic Accounting -- Applying forensic accounting techniques to uncover and analyze financial evidence relevant to the legal dispute. My expertise in accounting, auditing, and financial analysis allows me to identify financial irregularities, assess the integrity of financial records, and provide reliable evidence for use in litigation.
Document Review and Discovery -- Assisting legal teams in reviewing and analyzing financial documents, records, contracts, and other relevant materials during the discovery process. I can help identify and organize financial information that is critical to the case, ensuring its accuracy and relevance.
CPA litigation consulting services provide valuable financial expertise and analysis that contribute to the successful resolution of legal disputes. The specialized knowledge and skills of a CPA/Financial Executive can help attorneys and clients navigate complex financial issues, present credible evidence, and make informed decisions based on financial analysis and expert opinions.
Business Transformation
Transformation services aim to drive significant and sustainable change, helping organizations adapt to new market conditions, improve efficiency, enhance performance, and achieve strategic objectives.
I have transformed many processes throughout my career. One of the more interesting examples …
I was retained as a turnaround GM for a struggling manufacturing company. It utilized a “make to order” algorithm without employing any WIP buffers (intermediary inventory) in the process. Each part was “made from scratch” resulting in a typical quote time of 4 weeks. Their manufacturing process was complex, requiring as many as 11 workstation operations to fabricate parts. The complexity and lack of WIP buffers resulted in significant schedule delays and customer aggravation. The company’s catalog contained 2,200 parts. To improve velocity, we re-engineered the manufacturing parts and determined that, by creating 33 new intermediary parts at stage 5 of the manufacturing process, we could dramatically shorten lead times and improve productivity. After building WIP buffer inventory, quoted lead time dropped to 3 days from 4 weeks with 96% of all inventory being shipped on schedule.
Transformation services can include --
Strategy Development -- Assisting in the development of a clear and comprehensive transformation strategy aligned with the organization's vision and goals. This involves conducting a thorough analysis of the current state, identifying areas for improvement, and defining the desired future state.
Change Management -- Developing and implementing change management strategies to ensure successful adoption and acceptance of the transformation initiatives. Outsourced professionals can assist in stakeholder engagement, communication planning, training, and organizational culture transformation.
Process Improvement -- Analyzing existing processes and identifying opportunities for optimization and streamlining. Outsourced experts can help redesign processes, implement lean methodologies, and introduce automation or technology solutions to drive operational efficiency.
Technology Enablement -- Assessing the organization's technology infrastructure and recommending technology solutions that support the transformation objectives. This may involve implementing new software systems, upgrading existing systems, or integrating various technologies to enable seamless operations and data management.
Performance Measurement and Monitoring -- Developing performance metrics and implementing monitoring systems to track the progress and impact of the transformation initiatives. This allows organizations to measure the effectiveness of the changes and adjust as needed.
Organizational Restructuring -- Assisting in restructuring efforts, such as reorganizing departments, adjusting reporting relationships, or redesigning job roles and responsibilities. Outsourced professionals can provide guidance on organizational design, workforce planning, and talent management strategies.
Project Management -- Managing the overall implementation of the transformation initiatives, including planning, resource allocation, risk management, and progress tracking. This ensures that the transformation projects are delivered on time, within budget, and in alignment with the defined objectives.
Outsourcing transformation services offers several benefits, including access to specialized expertise, accelerated implementation, and reduced internal resource requirements. Additionally, outsourcing enables organizations to maintain focus on their core operations while entrusting the complex task of transformation to experts.
Financial Planning & Analysis (FP&A)
FP&A involves analyzing financial data, developing budgets, creating forecasts, conducting variance analysis, and providing insights to support strategic decision-making within an organization.
In 1995, I was an early adopter of ODBC FP&A reporting. I used Microsoft Access coupled with ODBC links into Btrieve or Pervasive databases to produce regenerative FP&A reports. As technology improved, MS Access as ‘middleware’ was eliminated; replaced by linking MS Excel to underlying SQL databases. As a result, Excel reporting becomes connected directly to the underlying database capable of refreshing the dataset within seconds. Because the reports are deployed in Excel, the ability to analyze the data is greatly improved.
FP&A services typically include --
Budgeting and Forecasting -- Developing comprehensive budgets and financial forecasts based on historical data, market trends, and business objectives.
Financial Modeling -- Creating sophisticated financial models that help evaluate different scenarios, assess risks, and support strategic planning initiatives.
Performance Reporting -- Generating regular reports that provide insights into financial performance, key metrics, and variances between actual and projected results.
Business Analytics -- Conducting in-depth analysis of financial and operational data to identify trends, patterns, and areas for improvement.
Strategic Planning Support -- Assisting in the development of long-term strategic plans, including financial projections, capital allocation strategies, and investment analysis.
Outsourcing FP&A services can offer several benefits, including cost savings, access to specialized expertise, scalability, and the ability to focus internal resources on core business activities. It allows organizations to tap into a broader range of financial analysis capabilities while ensuring accurate and timely reporting for informed decision-making.
Mergers & Acquisitions (M&A)
M&A services involve activities aimed at facilitating and executing the strategic consolidation of companies, including due diligence, valuation, deal structuring, negotiations, and integration planning.
I have done 6 M&A transactions, both pre- and post-transaction.
I have also been retained to assist in post-transaction integration. In this connection, I have observed that M&A transactions frequently don’t measure up to expectations because the acquiring company focuses primarily on making the deal while failing to insure post-transaction success. These failures were attributable to moving too quickly to integrate a new acquisition without fully understanding what made the acquiring company successful in the first place.
M&A services typically include --
Due Diligence -- Conducting thorough investigations and analysis of the target company's financial, operational, and legal aspects to assess its strengths, weaknesses, risks, and potential synergies with the acquiring company.
Valuation -- Determining the value of the target company through various valuation methods, such as discounted cash flow analysis, comparable company analysis, or asset-based valuation.
Deal Structuring -- Assisting in structuring the transaction, including determining the purchase price, consideration mix (cash, stock, or other assets), and negotiating the terms and conditions of the deal.
Negotiations -- Providing support during negotiations with the target company's shareholders, management, and other stakeholders to achieve favorable terms and conditions for the acquiring company.
Integration Planning -- Assisting in developing a comprehensive integration plan to smoothly combine the operations, systems, cultures, and personnel of the acquiring and target companies post-merger or acquisition.
Complex Financial Modeling
Complex modeling involves the use of advanced mathematical and statistical techniques to analyze and predict outcomes in intricate financial scenarios.
Modeling services typically include--
Model Development -- Creating sophisticated financial models that can capture complex relationships, variables, and scenarios. This may involve building models for financial forecasting, risk analysis, valuation, investment analysis, optimization, or other specialized areas.
Data Analysis and Integration -- Gathering and analyzing large and diverse datasets to ensure accurate and comprehensive inputs for the models. This may involve integrating data from various sources, cleaning and organizing the data, and performing statistical analysis.
Model Validation and Testing -- Conducting rigorous testing and validation of the financial models to ensure their accuracy, reliability, and suitability for the intended purpose. This includes verifying the model's mathematical and statistical integrity, assessing the model's performance against historical data, and stress testing the model under various scenarios.
Sensitivity Analysis and Scenario Planning -- Assessing the sensitivity of the financial models to changes in key variables and parameters. Outsourced experts can help organizations perform scenario analysis and develop contingency plans based on the insights gained from the models.
Model Documentation and Reporting -- Documenting the financial models, including model assumptions, methodologies, and limitations. Outsourced professionals can assist in generating comprehensive reports and presentations that communicate the results, insights, and recommendations derived from the models.
Business Planning
An operating business plan outlines the strategies, goals, and operational details that guide the day-to-day activities and long-term success of a business.
Two of the more important Planning considerations are --
The finished plan MUST integrate with the reporting system; both at the general ledger level and at the operational levels. Doing so will insure that accurate KPI’s are promulgated.
Plans must be ‘market driven’, meaning that the only plan variable is topline sales. In this connection, market driven plans produce the most accurate result.
Planning services typically include --
Business Analysis and Research -- Conducting a thorough analysis of the business, its industry, target market, competitors, and other relevant factors. This involves gathering data, market research, and industry analysis to inform the development of the business plan.
Strategic Planning -- Defining the vision, mission, and overall strategic direction of the business. This includes setting goals and objectives, identifying key success factors, and formulating strategies to achieve them.
Financial Planning and Projections -- Developing financial forecasts, including revenue projections, expense estimates, and cash flow analysis. Outsourced professionals can assist in creating realistic financial models and conducting sensitivity analysis to assess the financial viability of the business.
Operational Planning -- Outlining the operational aspects of the business, including organizational structure, staffing requirements, production processes, supply chain management, and distribution channels. This includes developing operational strategies and identifying key performance indicators (KPIs) to monitor and evaluate operational performance.
Marketing and Sales Strategies -- Defining marketing and sales objectives, identifying target markets, and developing strategies to reach and attract customers. This may involve market segmentation, branding, pricing strategies, promotional activities, and customer acquisition plans.
Risk Assessment and Mitigation -- Identifying potential risks and challenges that may impact the business's operations and profitability. Outsourced professionals can help develop risk mitigation strategies, contingency plans, and measures to ensure business continuity.
Document Preparation -- Assisting in the creation of a well-structured and comprehensive business plan document. This includes organizing the plan into sections, writing clear and concise content, and incorporating visual elements to enhance readability.
Cash Flow Forecasting & Management
Cash flow management services which involve monitoring, analyzing, and optimizing the inflow and outflow of cash within a business or organization. They focus on ensuring that there is enough cash available to meet financial obligations, such as paying bills and expenses, while also planning for future needs and maximizing the utilization of available funds.
Services often include estimating or predicting future outcomes or events based on past and present data, trends, and patterns (forecasting).
Cashflow management and forecasting are subsets of the planning model. Whereas most planning models look forward 1-5 years, cash flow forecasting and management looks at a more short-term period, typically a rolling 14 week look forward.