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Case Study: Transforming a Family-Owned Business Post-Acquisition

  • Writer: John Silverstein
    John Silverstein
  • Sep 1
  • 2 min read
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Background

A Private Equity firm was acquiring a long-standing, family-owned business in the services sector. While the company had a solid customer base and operational strength, it lacked corporate-level financial structure and reporting. The PE firm needed confidence in the numbers before acquisition, as well as a roadmap to professionalize finance post-close.


Challenges

  • No formal budget, forecast, or KPI reporting

  • Limited financial controls and reliance on legacy family processes

  • Absence of monthly financial statements and standardized reporting

  • Manual procure-to-pay processes that created inefficiencies

  • Field workers operating without a modern system for service and expense capture


Approach


Pre-Acquisition Assessment

  • Conducted an operational and financial review to highlight gaps in controls, reporting, and scalability.

  • Supported the firm’s Quality of Earnings (QoE) review to validate key metrics and ensure a smooth diligence process.


Post-Acquisition Support

  • Implemented first-ever budget and forecasting processes to provide visibility into performance.

  • Established monthly financials with clear reporting packages for management and investors.

  • Developed KPI dashboards to track operational and financial performance at both the field and corporate level.


Process & System Improvements

  • Designed and implemented a procure-to-pay workflow, reducing inefficiencies and improving accountability.

  • Rolled out a field system for technicians to capture time, services, and expenses digitally, improving accuracy and billing turnaround.


Financial Optimization

  • Negotiated improved vendor terms, lengthening cash flow cycles.

  • Implemented a corporate card program delivering 2% cashback on all spend.

  • Identified cost savings that drove an immediate 10% bottom-line improvement.


Interim CFO Role

  • Acted as interim CFO post-close, bridging the gap between the acquisition and a permanent hire.

  • Built out the finance function with appropriate staff, controls, and processes.

  • Transitioned responsibilities to a newly recruited Controller/CFO, ensuring long-term sustainability.


Results

  • PE firm gained confidence in financial controls and performance tracking.

  • First corporate budget and forecast established within 90 days of acquisition.

  • Monthly close process implemented, delivering timely and accurate reporting.

  • Improved operational efficiency with digital tools for field employees.

  • Strengthened liquidity and profitability: 10% immediate savings to the bottom line plus 2% cashback on company spend.

  • Finance function transformed from family-run processes to a scalable, investor-ready structure.

 
 
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