PMC Treasury > Case Studies > Optimizing Treasury from a carve out and preparing for growth

Optimizing Treasury from a carve out and preparing for growth and scale


PMC Treasury identified opportunities to dramatically improve global liquidity and working capital, reduce payment risks and enhance operations and controls in anticipation of significant mergers and acquisitions.

Challenges

  • Treasury team structure incomplete and remit to be evolved after carve out.
  • Dated or missing operational, liquidity and risk management policies and procedures.
  • Inadequate staffing of positions with risks presented around separation of duties, team coverage for payments
  • Working capital payables and receivables are significantly suboptimal representing poor use of capital.
  • Non-existent cash management and forecast systems. For visualization of global liquidity

 

Solutions

  • Developed a formal Treasury department, hire a Treasurer and staff to accommodate current needs and organizational growth
  • Updated and create organizational policies and procedures to both govern operations and provide control of payment risks
  • Updated and implemented an investment policy to enhance returns on significant cash balances
  • Performed a working capital deep dive to better identify all opportunities to minimize receivables and optimize payment terms and start optimizing DPO/DSO
  • Implemented systems for vendor management, cash management/forecasting and enhance existing SAP solution

 

Benefits

  • Reduced operational and financial risks by creating a robust team with corresponding policies and procedures
  • Enhanced team efficiency/scalability to accommodate future growth, while mitigating operational and payment risks
  • Optimized working capital to significantly enhance liquidity and realized return
  • Mobilized investable funds to enhance liquidity and return while minimizing debt in anticipation of growth
  • Enhanced payment control and limit fraud risk