A French based global manufacturer of packaging for FMCG businesses was sold to a financial sponsor by its conglomerate parent. The resulting carve out lacked a stand-alone treasury function and while temporary transition arrangements existed for a period after the acquisition, management engaged PMC to assist with the establishment of a new treasury function.
- Develop a cash management framework covering forecasting, intercompany funding, and the implementation of a cash concentration structure;
- Establish processes for opening and closing bank accounts, setting up bank guarantees and letters of credit, and negotiate local facilities;
- Implement currency cash flow forecasting, hedging processes and reporting;
- Establish debt management processes including covenant compliance, debt servicing and reporting;
- Document treasury policies and procedures.
Results & Recommendations
Our involvement allowed the expedient establishment of a fully functional and independent treasury operation.