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Financial Operations Stabilization
Financial Operations Stabilization
$250M Spa Manufacturer
Background
- The company is a PE-backed manufacturer and distributor of hot tubs
- The company was family-owned that grew rapidly over 6 years to a point where the owners decided to sell as the complexity of such a large company was too much for their skillset
- During the past two years, the PE fund has acquired two additional hot tub companies and is consolidating to become a larger player in the hot tub space
Contributions
- Converted the company to accrual accounting
- Built up the accounting, finance and FP&A roles
- Took the companies through multi-year audits and purchase accounting
- Trained the team to sustain this higher level of accounting and financial reporting
- Created financial tools to run the business from day to day to annual budget
- Educated the team on accounting, and financial planning tools (their ERP and MS Office)
Results
- Sales backlog was analyzed and reduced by 3-5 months
- Accounting close was reduced from 3 weeks to 1 week and improved the accounting finance skillset
- Cashflow was improved by several million by extending AP terms and reducing AR days through floorplan financing program
- Lean Manufacturing implementation on the production floor improved throughput by 20% with zero capital investment
- Days Inventory On Hand (DIOH) was reduced from 43% to 39%
- Cut turnover from over 30% to 8% thru a series of pay increases and employee engagement programs