Treasury Review Fashion, Europe

Client Brief

A well-known Italian fashion designer and manufacturer, recently purchased by a financial sponsor, asked PMC to perform a review of its treasury function based in Northern Italy. Both the financial sponsor and management were keen to have this review as the business had inherited many outdated practices and there were concerns regarding the group’s exposure to the USD/EUR exchange rate.

PMC Solution
  • Conduct a 3 day on-site visit during which the CFO, Treasury team and finance staff were interviewed about treasury processes, policies and reporting;
  • Perform a multi-phased detailed review of the organization’s FX risk management practices;
  • Prepare a report identifying improvement opportunities.
Results & Recommendations

By implementing the changes we suggested, the client was able to streamline a formerly inefficient banking structure, improve the quality of its treasury reporting, establish an effective cash forecasting and FX management framework and increase the overall efficiency of its operational treasury management practices.