Helping the Treasury Department to deal with pressure on the Group’s cash position

Sector of activity: Construction and civil engineering
Size (sales in €m): 500

Context

  • Having previously been cash rich, the Group’s cash position had come under considerable pressure
  • The Finance Department had to adapt its tools and its processes
  • Top Management were required to get all employees to embrace the Cash Culture

Our mission

  • Estimation of the scale of the pressure on cash (amount and duration)
  • Redefinition of the cash flow diagram and identification of measures to improve the Group’s cash position
  • Modification of means of payment to third parties and taking the Group in hand regarding its outflows
  • Actions for reducing customer payment delays and optimizing “cash in”
  • Definition, implementation and management of the ‘Cash Plan 2014’

Results

  • Controlled management of the pressure on cash
  • Optimization of daily cash management to attain the level required by an LBO of that size
  • Ensuring that the Cash Culture again became a central concern of Management

Key success factors

  • Support by Treasurers and a highly pragmatic approach
  • Quickly identified solutions which were immediately implemented alongside Management
  • Familiarity with the business line, making it possible to also advise Management on a daily basis