Ohio-based Metalworking Manufacturer
Industry: Industrial Manufacturing
Focus: Precision Metalworking Components
Background: Recently spun off from larger industrial conglomerate, PE-backed
The Challenge:
Following a complex spinoff from a major industrial conglomerate, this Ohio-based metalworking company faced a critical challenge: building a sophisticated financial operation from scratch. As a newly independent entity backed by private equity, they needed to establish robust financial reporting and analysis capabilities quickly, but inherited systems and processes weren't designed for standalone operations.
"Post-spinoff, we essentially had to build our entire financial infrastructure while maintaining day-to-day operations," explains their newly appointed CFO. "We needed expertise in multiple areas - from technical accounting for manufacturing to sophisticated financial planning - but finding local talent with both industry knowledge and modern tool proficiency proved nearly impossible."
The situation was complicated by their private equity backing, which demanded sophisticated financial reporting and analysis capabilities typically found in much larger organizations. Traditional hiring approaches weren't yielding candidates with the right combination of manufacturing industry expertise and modern financial technology skills.
The Transformation Journey:
"The impact was immediate," notes their PE Operating Partner. "Instead of just handling basic financial operations, we were getting sophisticated analysis and insights that helped drive operational improvements."
Building the Foundation:
- Technical accounting specialists with manufacturing expertise
- FP&A professionals skilled in operational analysis
- System implementation experts for modern financial tools
- Data analytics specialists for enhanced reporting
Key Transformational Elements:
1. Financial Systems Modernization
- Implementation of cloud-based ERP system
- Automated cost accounting processes
- Enhanced inventory management systems
- Integrated financial planning tools
2. Reporting & Analytics
- Automated daily flash reports
- Real-time operational metrics
- Advanced cost analysis dashboards
- Predictive analytics for forecasting
3. Operational Finance
- Sophisticated cost allocation models
- Automated variance analysis
- Enhanced cash flow management
- Integrated budgeting systems
Measurable Impact:
The transformation delivered significant improvements:
- Reduced month-end close from 15 to 5 days
- Implemented real-time operational cost tracking
- Enhanced forecast accuracy by 40%
- Automated 70% of routine financial processes
- Developed sophisticated KPI tracking
Creating Competitive Advantage:
"What started as a necessity has become a competitive advantage," reflects their CEO. "Our financial operations now rival those of much larger manufacturers, but with greater agility and lower overhead costs. The combination of industry expertise and modern tools has transformed how we manage the business."
Long-term Value Creation:
The remote finance team has become integral to the company's operations, contributing to:
- Enhanced operational decision-making
- Improved private equity reporting
- More sophisticated financial planning
- Better working capital management
- Strategic growth planning
Future Outlook:
The company continues to enhance its financial capabilities, with particular focus on:
- Advanced automation initiatives
- Predictive analytics implementation
- Enhanced operational metrics
- Strategic planning tools
- Scalable financial processes
Note: While we maintain client confidentiality in our public materials, we're happy to provide direct references and facilitate conversations with similar clients during the engagement process.