Client Overview
A prominent UAE national brand specializing in alternative investments operates at the forefront of non-traditional and innovative business practices. Headquartered in Abu Dhabi, this group, comprising ten subsidiaries, spans diverse sectors such as information technology, e-commerce, construction, capital investment, transportation, general maintenance, engineering, and business consultancy. In response to the evolving technological landscape, the group sought strategic financial guidance to adapt to rapid changes and solidify its growth trajectory.
The Challenge
As one of Abu Dhabi's fastest-growing companies, the group needed CFO advisory services to ensure precise and credible financial reporting. The founder and chairman sought to enhance financial visibility, understand the company's cash requirements and position, and plan for future growth and associated capital needs. The unique challenge stemmed from the traditionally hierarchical family structure, where outside leadership roles, including CFOs, were uncommon as long as family ventures remained profitable.
The Approach
Assist Plus took on the role of CFO for the group, addressing the challenges that stemmed from a cash-based accounting system and a lack of financial forecasting. The approach included:
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Conducting a comprehensive SWOT analysis and fostering alignment on long-term goals among the owners.
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Transitioning the accounting system to an accrual basis, preparing the company for discussions with lenders, investors, and auditors.
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Providing training and coaching to in-house talent on accrual accounting.
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Designing a financial forecast to project revenue, costs, and cash flow.
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Offering a monthly financial package, comparing results to forecast and budget, and explaining related variances.
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Establishing new financial reporting mechanisms to track growth and profitability by business segment.
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Facilitating critical introductions to deal-related contacts, including a law firm, valuation firm, and investment bank.
"We had issues, but with your expertise, we overcame them and managed to meet our customers' expectations," said the founder and chairman.
The Results
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The transformational efforts resolved key structural issues that had previously hindered the company's attractiveness to investors. In-house talent was trained and developed to elevate financial record-keeping, reporting, and sustainable systems. The awareness of the company's financial performance and position increased significantly.
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The successful exit, facilitated by a well-aligned strategic partner, allowed the company founders to continue operating autonomously, marking a pivotal achievement in the group's journey.