Defining the Target treasury model for the merger of two transportation companies

A private equity firm purchased two transportation companies from another private equity firm with an intention to keep separate treasury and financial operations while centralizing execution. The company sought PMC’s assistance in identifying the company’s target Treasury model including processes, decisions, roles, and governance / controls.


  • Legacy firms had informal treasury operations
  • Non-optimal liquidity, banking and group policies
  • Significant AP and AR staff and partially decentralized financial operations
  • Strong Treasurer with lean organizational capacity, unmanaged treasury functions and manual processes
  • Incomplete treasury policies



  • Defined target state to maximize efficiency and preserve strategic flexibility.
  • Quantified costs and FTE hours associated with current payment processes to quantify benefits of recommended automation improvements.
  • Sequenced initiatives by priority based on benefits, costs, and interdependencies.
  • Identified gaps in policies and controls and restructured to reduce operational risk
  • Automated and improved reporting on debt covenants.
  • Benchmarked bank fees and rationalized bank accounts and relationships.



  • Uncovered opportunities to reduce or reallocate 2 FTEs or generate $60 –75K in annual savings by leveraging AP and AR automation
  • Improved control and governance of all core Treasury areas to reduce risk and improve decision making.
  • Improved and automated debt compliance reporting reducing human error and improve efficiency
  • Identified bank fee cost savings of $8k and $60k in incremental credits (at improved bank earnings credit rate).