Building a Specialised Powerhouse: A Journey of Integration and Transformation

This story, a personal favourite, highlights the power of long-term relationships and strategic collaboration within the Australian specialised systems landscape. It all began years ago when a private equity firm acquired a Melbourne-based advanced materials & systems manufacturing business. This company, renowned for producing specialised components for a diverse range of industries, served a prestigious clientele of global companies spanning advanced technologies, mining, and infrastructure. This acquisition marked the first step in a strategy to build a formidable group of privately owned industrial suppliers and manufacturers in Australia.

The CFO, a close friend from years past, joined the company and immediately recognised the need to strengthen their corporate services, particularly the finance function. The business, previously family-owned, hadn't placed significant emphasis on this area. The first priority? Finding a skilled Financial Controller.

This was a really interesting journey. The candidate, with experience at a Big 4 accounting firm and a multinational company, initially expressed a preference for larger, well-known corporates. After he explored his career goals, he was persuaded to consider positions within more medium sized entities if they would cater to his aspiration for career growth. When it was originally pitched to him, he was deterred by the interim-to-permanent nature, as well as the fact he would be a Financial Controller with minimal commercial aspects to his position and it was paying less than what he wanted. The role, while not initially aligning with his criteria, offered valuable experience and a pathway to growth. He is now the Group Financial Controller of the largest private business in his current industry in the country, more than quadrupling the size of the business and team that he joined back then, but that’s a story for another day. 

This successful placement laid the foundation for building a robust finance team, including an FP&A Manager and Financial Controller, along with their respective teams. They were setting the stage for significant expansion.

And expand they did. Over the next three and a half years, the PE firm acquired a few more companies, substantially increasing the group's size and operational scope. This is where the real challenge began.

Integrating for Success, Yet Preserving Flexibility

The acquired businesses, while aligned with the sector, presented diverse operational focuses. In addition to the initial company's specialised advanced systems and engineering capabilities, there was a company specialising in smaller technologies, and two others providing maintenance and repair services for various industries.

Given the operational separation, the immediate integration focus was on corporate functions, with a pragmatic approach that allowed for potential future divestment. This involved careful consideration across finance, technology, HR, payroll, information security, and supply chain.

A Symphony of Integration Programs

The integration was a complex undertaking, with numerous programs running concurrently. They started by bringing in an Integration Program Director to map out a 100-day plan for each acquisition, including one that involved navigating a tight Transition Services Agreement (TSA) following divestment from a global group.

Key initiatives included:

• Centralised Group Finance Function: They implemented a cloud-based system to consolidate financial data and reporting across the group, providing real-time visibility and improved decision-making.

• Business Unit Finance Functions: Recognising the diverse needs of each business, they established specialised finance teams with expertise in Advanced Materials & Systems space, allowing for tailored support and resource optimisation.

• Standardised Cash Flow Forecasting: Aligning forecasting methodologies and implementing a rolling forecast process enabled more accurate cash flow predictions and proactive management of working capital, especially crucial in a volatile economic climate.

• Hub-and-Spoke Finance Business Partnering: They created a hybrid model with centralised budget ownership and dedicated finance business partners embedded within each business unit, fostering collaboration and driving performance.

• Streamlined Finance Operations: From order-to-cash and procure-to-pay to month-end close and group reporting, they standardised and automated key finance processes across all subsidiaries, improving efficiency and reducing manual effort.

• Payroll Consolidation: They streamlined payroll systems and processes, reducing complexity and ensuring compliance across different award structures and employment agreements.

• Integrated Technology Infrastructure: By standardising hardware, networks, and cybersecurity protocols, they improved efficiency, reduced costs, and enhanced data security across the group.

• Enhanced Information Security: They assessed and implemented robust information security frameworks and controls, including ISO27001, DISP and NIST, to protect sensitive data and meet stringent customer requirements across various industries.

• Improved HR Business Partnering: They established consistent HR policies and procedures, streamlined onboarding processes, and implemented new performance management systems to support employee engagement and development across the group.

• Strategic Restructuring Guidance: They provided external expertise advice and support during any restructuring activities, ensuring compliance and minimising disruption to the workforce.

• ERP Consolidation: They consolidated financial systems into a single instance platforms, reducing complexity and improving data visibility across the group.

• Standardised Costing: Implementing activity based costing and standard costing methodologies across operations led to more accurate cost management, improved pricing decisions, and ultimately, increased profitability.

• Enhanced Budgeting and Forecasting: They implemented a robust budgeting and forecasting process, with clear accountability and performance tracking, enabling better decision-making and driving business unit performance.

Navigating the Rapids of Change

Rapid team growth brought unique challenges beyond logistics—it demanded a deep understanding of individual career motivations. Their approach centered on identifying when team members felt frustrated, confused, or overworked, and realigning them with their overarching goal before they had embarked on this journey. 

By listening closely to each person’s drivers and concerns, they could offer targeted support that not only addressed immediate issues but also reinforced their career aspirations. Direct communication and strategic interventions were essential, ensuring that every team member stayed focused and motivated, even during periods of significant change. Collaborating with leadership, including proactive sessions with the CFO, further solidified the commitment to translating diverse personal ambitions into collective success.

The Outcome: A Specialised Powerhouse

This complex integration, executed within a dynamic and evolving environment, has resulted in the creation of the leading specialised company in Australia within their field. And the journey continues, with further expansion on the near horizon.

This experience highlights the transformative power of collaboration, strategic vision, and meticulous execution. It's a testament to the value of long-term partnerships and a deep understanding of needs, enabling the delivery of impactful solutions that drive growth and success.