Financial Review and Industry Benchmark Assessment

The Challenge 

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Our Client, a UHNWI, engaged us to undertake a financial review of his shareholding in a group of ship chartering and management companies within continental Europe.  Our focus was to undertake current state financial analysis of each company, opine on findings and validate against industry common practices.  Where appropriate and data available we also compared performance to industry benchmarks.

 

Assignment - Delivered

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LP Squared assembled a small project team and focused its initial assessment on:

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• Review of available audited Financial Statements, internal management reports, project reports and active contractual engagements

• Onsite visit, meeting with local Management Team ensuring early engagement of all stakeholders especially the team on the ground

• We used our proven Operation Audit Approach to identify, capture and gather a company’s operational dynamics, focusing on qualitative data analysis involving questioning staff as well as quantitative and financial data investigation and assessment

• This engaged focused on the following areas: Charter rates, Commission rates, Overhead costs, Personnel costs and Cash traceability within the Group

• We used our findings to prepare a framework assessing improvement needs within the Group, a peer review analysis and detailed recommendations on key areas of concern

 

Result – Value added

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LP Squared delivered a detailed findings report and proposed next steps with a realistic actionable plan.  The Client extended the original engagement and we delivered the proposed improvement plan:

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• We worked with the Local Management Team to improve financial reporting, focusing on Shareholder needs

• Introduced new controls around funds management and transparency, enabling cash traceability

• Created a competitive pricing strategy with built in measures allowing ongoing benchmarking

• Identified loss making areas within part of the Group and agreed disposal of assets

• LP Squared managed the review, valuation and sale of assets

• Changed operational roles and responsibilities reducing headcount and costs