Case Studies
STUDY #1
High Growth Aspirational SME
Consultant: Tony Rutherford
Background
Our client was in their second year operating in the civil construction industry, essentially performing earthworks and horizontal infrastructure works. Current projects were highly dependent on subcontractors with a small internal project team. Financing was provided via a family trust however somewhat constrained. A small provincial chartered accounting firm provided external accounting and tax services. Decisions were being made off extracts from Xero and Excel spreadsheets. All construction business
workflows were manual. No clear lines of
authority were in place. Commercial insights were limited.
Approach and Prioritisation:
Copperfox
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An agreed program of work was agreed which included the following:
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Confirmation of owner’s personal situation, lifestyle, financial well-being, aspirations, industry overview
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Reviewing business founding documentation, identify and agree barriers and opportunities which helped establish the initial scope of work.
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Develop an action plan, starting with strategy and incorporating financial, operational, technology and people requirements to meet growth aspirations.
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Introduce frameworks that would enable the business to operate more efficiently, yet dynamically, given the environment.
Value Created:
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Strategy and Business Plan documented.
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Selection and appointment of a new Auckland based chartered accounting firm with the legacy requirements successfully transitioned.
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New “fit for purpose” working capital and asset financing obtained circa NZ$1m
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New project JV legal, financing and risk framework established.
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Key Performance Indicators agreed and embedded and forward looking financials established.
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Technology roadmap documented and agreed.
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Selection of Construction business IT platform and ERP migration completed.
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Delegated Authority framework and Financial authority established to facilitate business continuity.
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Business Support structure and people resource confirmed and appointed.
STUDY #2
Sale of Stadium Catering Company
Consultant: Greg Harrison
Background
The client was contracted to provide event catering and conferencing at both Eden Park and North Harbour Stadiums. The owners had built the company up over 30 years, the last fifteen of which included the stadium contracts.
The company turned over low eight figures with an EBITDA in the low seven figure range. The assignment also involved navigating complex third-party relationships beyond the buyer and seller with the Eden Park Trust Board, Auckland Council liquor licencing authority and the Police.
Approach and Prioritisation:
Copperfox
The engagement included a focus on the following:
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We first developed a strategic plan that identified the need to address key issues and milestones required to ensure a smooth sale and transition to a new operator.
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A detailed analysis was carried out to identify the issues and risks that could impact
both, then establish key milestones on delivering solutions. -
Initial analysis found key operational processes weren’t well documented, which would prove difficult to transfer to any new operator. That was down to the existing owners being hands-on and heavily involved in managing game day operations.
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Prioritisation given to documenting processes and ensuring the risks around compliance with the Trust Board, Council and Police were covered and addressed.
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Introducing new software and POS systems that utilised the network infrastructure at both stadiums. The aim being to make key operations more transparent and systemised, to help reduce known operating risks and increase the sale value of the company. It also provided a clearer and easier roadmap for a transition to any new operators.
Value Created:
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Our work helped improve both the tangible and intangible values of the business.
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The documentation process along with the adoption of new technology and the
systemisation of key operations, helped reduce the risk profile of the company and
increase its tangible value, thereby increasing the enterprise value. -
The company was then in a better position to present itself as a market leader in stadium catering, enhancing its brand value and therefore its intangible value.
STUDY #3
Cover for CFO “Missing in Action”
Consultant: Tony Rutherford
Background
Our client is in the business of industrial
equipment hire, with revenue of circa NZ$40m. We were engaged by the MD to provide cover for a CFO who was not performing their role and would not return to the office post - Covid. His team were underperforming with many of them also errant. Monthly reporting was sporadic at best with the last 2 years financials and tax returns still incomplete. Their transactional banking partner was becoming agitated with the lack of progress as Covenants were not being reported on. The auditors were understandably irritated as they had been promised information to plan the audit, which never arrived. To add to all of this, they were running 12 months behind in the implementation of an ERP rollout (Netsuite).
Approach and Prioritisation:
Copperfox
I set about prioritising the work needed to gain control over the financial governance of the business:
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I engaged a respected chartered accounting firm to do the catch up of the Financials and tax, which then needed me to work closely with them in the ensuing what was agreed was completed.
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A contract Accountant was brought in to perform the catch-up management accounts, which included re-creating any missing data.
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Regular engagement were required with external stakeholders on progress being made.
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A collegial team culture was recreated within the finance and admin team, getting them focused on delivering on required day-to-day activities.
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By taking over the responsibilities of the incumbent CFO, quickly redefined the
responsibilities of the finance team including governance, compliance and reporting requirements. -
Eventually transitioning over to the newly appointed CFO.
Value Created:
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Provided commercial leadership in a complex stakeholder environment.
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Caught up with all External and Internal reporting requirements.
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Reprogrammed action plan needed in progressing the NetSuite implementation.
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Re-structured the finance and accounting function.
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Implemented an automated payment workflow (P Card)
STUDY #4
Replace Ineffective CFO
Consultant: Rob Erskine
Background
Our client was in the food manufacturing
business, with revenue of circa NZ$40m. We were engaged by the owner to replace the incumbent CFO who was not performing their role to a reasonable standard and was raising concerns about the information supplied to the board, not to mention the financial state of the business wasn’t fully disclosed to stakeholders. It transpired the company were behind in payments to the IRD and were in breach of the financial covenants with the bank.
Approach and Prioritisation:
Copperfox
I set about prioritising the work needed to gain control over the financial
governance of the business:
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I first focussed on the amounts owed to the IRD, and successfully formulated a pitch to the IRD with a proposed payment plan that they agreed to. The amounts owed were close to $2m.
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I approached the bank asking for a review of the current funding requirements and
proposed a restructure of the funding to better align with the company’s current status and future needs. With help from the company’s external accountants, we created a 2 year forecast, audited by the accountants, that the bank then accepted. Revised funding was granted under strict performance expectations. -
I restructured the finance team, empowering the accountants within the team to take on more responsibility. Something that was lacking prior to me coming onboard.
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I reviewed the monthly reporting format and tightened controls around month end to ensure timely and accurate reporting to the Board and Bank.
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Cashflow forecasting and management become a top priority as was upholding the terms of the payment plan agreed with the IRD.
Value Created:
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Stronger commercial leadership in a complex stakeholder environment.
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Embedded a robust reporting platform for all External and Internal reporting.
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Improved the information flow to the bank.
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Re-structured the finance and accounting function.
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Implemented a credible payment plan with the IRD which reduced the risk of closure.