Case History: Business Analysis & Financial Tool Modeling
Construction Resource Company
A comprehensive Business Analysis sets the platform to build financial modeling tools that help businesses evaluate decisions based on accountable performance and test their future impact.
Situation
Headquartered outside of Atlanta, Georgia is a well-established construction resource business with an 18-year track record of installing door hardware solutions and custom closets. The business has engaged in over 250,000 projects for both single and multi-family homeowners. For the majority of its lifespan, the construction business operated with one owner and a few employees; however, over the last several years demand has grown and the business expanded its service renderings. Also, the business took on another partner to help scale the expansion and ultimately take over the business. As sales continued to grow with a solid and growing employee base, the new owner turned inward to get a better handle on the financial organization of the company and the business's break-even and its impact. To assist, the new owner requested financial modeling tools be built that could be used internally to help identify and control any challenges through the growth.
Objective
Fortis Business Advisors was referred into the construction company through their relationship with a local financial institution. The initial objective was to clean up the financial statements to ensure they presented the details the owner wanted most, followed by the development of a financial tool to help the owner test the financial impacts of decisions being made to keep the business stable through growth. To begin to gain a better understanding of the financial condition of the business, Fortis gave recommendations for how the Chart of Accounts should be organized across all financial statements, as well as ensuring that expenses are categorized on the Income Statement properly to present reliable results that were measurable across multiple and varying time-frames. Once the data was organized, Fortis proceeded to develop a financial modeling tool specific to the business.
Results
Comprehensive financial tool built to analyze the current and previous financials with a focus on break-even and the impact of previous measures taken to grow the business.
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In addition to the past and present analysis, the tool includes a projections function that will allow the owner to test the impact of potential decisions on top-line/bottom-line and break-even.
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Owner and bookkeeper were fully trained on how to use the tool for the most effective impact and analysis-based decision making.​
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Owner immediately separated positive versus poor-performing decisions to shift focus on those that would help the business.
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