Assignment
A Munich-based portfolio company had acquired a small group of six separately managed companies secure data transmission companies totaling about 100 employees. The portfolio company hired Schreiber Finanz to define a basic set of key figures and to provide them with continuous reporting on these companies. Also, they asked Schreiber Finanz to instruct and coach the accountants of each company to ensure quality accounting standards, with a view to implementing International Financial Reporting Standards (IFRS) later.
Challenge
The acquisition presented the portfolio company with both technical and leadership challenges. They had to streamline the numerous financial transactions between the six companies among themselves as well as with the previous owner (loans, payables, current accounts), which the portfolio company had inherited in the acquisition. Some of these transactions had to be changed because they conflicted with tax or other regulation, others had to be optimized regarding tax and overall interest expense. The portfolio company also had to find a way to unify and effectively lead the management teams of these six companies from different parts of the world, taking into account individual personalities and different cultural backgrounds.
Solution
Through in-depth individual interviews with key stakeholders, Schreiber Finanz founder Christian Schreiber acquired the necessary knowledge about each company’s balance sheet positions and the differences between their business models . Schreiber Finanz streamlined the claims and debts between the individual companies on the one hand and towards banks and shareholders on the other. Also, we defined and implemented a management information system based on the IT infrastructure available in each company .
Results
Within just a few months after completing the acquisition, the portfolio company had a “true and fair view” of the balance sheets and the profit and loss statements across the whole group. With Schreiber Finanz, the company was able to reduce tax and legal risks in their inter-company balance sheet positions and minimize overall interest charges. The portfolio company is now ready to move to the next stage – finding and hiring a full-time CFO, whom Schreiber Finanz will help to transition into his new role.