PKF Texas offered cost modeling services to shed light on operational performance and implemented weekly reporting to crews. In addition, PKF Texas also helped devise an incentive plan for crews as well as conceptualized a byproduct of this effort that assisted with revenue recognition (matching).
The client acquired a company that provided custom manufacturing and fabrication along with providing outsourced transmission and distribution services for the utilities industry. In reaction to this, there were expectations that the acquiree would add millions of dollars in earnings before interest, taxes, depreciation, and amortization (EBITDA) to the client, but it resulted in breaking even. The client's “root cause” analysis was needed to understand the drivers impacting the acquiree’s profitability and financial modeling, and it was necessary to equip management with the correct information to make sensible decisions.
Homegrown project management software and data tracking were a challenge to corral disparate information. Management didn't have an accounting background; they had more of a sales and relationship background. There was tension between the client and acquiree, so adjustments in culture were necessary across the board.