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Construction & Real Estate

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MERU CASE STUDY

Implemented financial monitoring for construction company launching acquisition program

COMPANY OVERVIEW

  • A $22M construction company specializing in cleanroom manufacturing had recently finalized a sale to PE
  • Management were unable to forecast revenue and were continuously missing their projections
  • Company was preparing for an aggressive acquisition phase and needed visibility to support operational planning and capital deployment decisions

OUR APPROACH

  • Evaluated pipeline and historical conversion rate to assess validity of short-term forecast and prepared adjusted sales forecast
  • Developed a bottoms up integrated 3-year business plan linked to the active projects schedule and pipeline
  • Assessed the liquidity runway based on current projections and adjusted scenarios
  • Reviewed existing board reporting template, evaluated and simplified reporting, and set up monthly variance analysis process

OUR IMPACT

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Developed 3-year business plan model to provide management and the sponsor with visibility into EBITDA and liquidity drivers
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Developed tool to quickly assess financial impact of potential acquisition targets
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Identified pipeline risks and opportunities and provided PE owners with strategic recommendations to manage their investment based on the company’s forecasted performance