The Situation
A small-cap industrial investor was preparing to exit a building products company four years into the hold period. Over time, the sponsor began losing confidence in the finance team’s ability to produce timely, reliable reporting and forecasts. The monthly close process had stretched to more than 50 days, the annual budget needed to be rebuilt, and leadership lacked a clear view into business performance.
The issues within the finance function also raised broader concerns about the company’s financial health and its readiness for a successful exit within the following 12 months.
Our Approach
Intrinsic served as a strategic advisor to both the private equity sponsor and the internal finance organization, helping create a roadmap to improve reporting timelines, reporting quality, and alignment around management priorities.
We guided the controllership team through change management efforts designed to improve morale, increase efficiency, and strengthen the quality of financial reporting. We also standardized WIP, order-to-cash, and reporting processes to create more consistency across the finance function. Within four months, the monthly close timeline was reduced from 50 days to 25 days while also meeting weekly KPI reporting expectations. This was supported by new quarterly board reporting templates aligned to the sponsor’s expectations around key initiatives and performance metrics.
The Impact
The engagement improved the quality and speed of financial reporting, giving both management and the sponsor a clearer view into how the business was performing. Intrinsic also supported the recruitment of a new CFO and Controller and helped reshape responsibilities across the finance team to better support the business through exit.