This Midwest construction materials distributor built their business on customer service, dependable materials, and acquisitions. But, after assembling a network of 70+ locations across varying products and service lines, their disconnected systems and processes created a huge challenge for FP&A. For the private equity owners, the result was limited financial visibility and little trust in the data to make confident decisions.
With Planful, they integrated disparate operational and financial systems to create a consolidated view of financial metrics and reporting while accelerating monthly close and consolidations.
A private equity firm acquired a building products distribution company composed of two distinct and disconnected entities. To expand their market presence, the firm completed four additional acquisitions and positioned the company for even more growth. But, with each of these six entities acting with an independent FP&A team, the firm faced challenges in consolidating their financial and operational data into a single, accurate view of the company’s overall financial health or performance.
Of course, each entity had similar but different software tools in use, KPIs being tracked, and processes to perform essential finance functions. Developing a consolidated solution would require both technical integration of various data and systems as well as change management to bring each entity’s FP&A teams onto the same platform and processes.
What the firm ultimately wanted was a single, companywide financial platform to enable fast and easy access to accurate and consolidated financial insights.
So, the firm engaged Wipfli LLP (formerly Waypoint Consulting), a Planful partner, to help guide the way. The firm specifically wanted an engine for financial consolidation, the ability to configure journal entries and eliminations, capabilities for minority interest and reclassifications, and templates for adjustments and validations. For outputs, they needed the ability to quickly create consolidated financial, management, GAAP, and board reports, and do it quickly, without much human intervention, and with high accuracy. And they wanted to standardize financial processes across the business, including monthly close and consolidation, financial reporting, and actual vs. budget reporting.
Working with Wipfli LLP, the firm found a solution to all these requirements, and more, in Planful. The platform’s bidirectional integration capabilities gave the company access to data from each entities’ ERP, CRM, spreadsheets, and legacy financial tools to create a single source of financial truth. And, with the powerful reporting, close and consolidation, and planning capabilities, they were quickly able to move their company-wide financial consolidation process onto a modern, cloud-based platform for growth. The firm also used Planful to take control of budget vs. actual reporting and gain more visibility into actual results and performance.
Now, with Planful as their company-wide financial platform, each entity follows consistent financial close processes, financial data and metrics are easily rolled up for a comprehensive view, and reports and KPIs leverage automation so FP&A can spend more time positioning the overall business for growth.
Specific benefits the company is realizing with Planful include:
This company’s individual FP&A teams struggled to perform as a single, consolidated unit. Planful provided a platform on which they could integrate and centralize data, bring process and reporting consistency, and eliminate combined weeks of time previously spent on manual efforts. Now, the company is enhancing overall performance with accurate financial insights used to make confident, growth-driving decisions.