Pride Advisory PAS Color Logo Transparen

Headquarters 

420 Lexington Ave, 30th Floor

New York, NY 10170​

Contact

Sims Tullos

Business Development, Pride Advisory

Tel: 212.235.5329

sims.tullos@prideglobal.com​

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M&A Client

Problem

  •  Our client lacked clarity regarding the Gross Profit generated by its individual clients

  •  Our client had trouble determining if its clients were profitable because it did not have a set service price for each client or service

  • Our client went to market with limited accounting background and without a complete financial picture

Solution

  • Pride Advisory obtained and analyzed the cost data from the internal cost tracking system from the client 

  • We built schedules to show current sales prices with the new vendor price increases based on each client’s recent activity

  • Schedules outlined the necessary price increase to get the gross profit back up to market based on our client’s industry

  • Schedules allowed our client to negotiate in real time with its customers to establish the minimum of a price increase to maintain a higher gross profit

  • We re-evaluated the company’s financials and ensured GAAP compliance on a monthly and annual basis

Result

  • Gross profit rose 2-3% overall from our client’s customer base

  • For some individual customers, gross profit hit double-digit increases, as well as jettisoning an unprofitable client after negotiations

  • Our efforts resulted in over a 2 million-dollar increase in gross profit for the business for the next fiscal year

  • Potential buyers receive a more accurate and reliable set of financial statements
     

 

Cash Flow Deficiency

Problem

  • The Client came to us amid an ongoing cash flow deficiency

  • The Client’s inventory purchases were not being managed properly, which resulted in an excess of over $1 million in inventory and a backlog of accounts payable

  • Consolidating the purchasing, inventory, and accounting departments to communicate with each other on a more regular and consistent basis

Solution

  • Pride Advisory negotiated new payment terms with vendors to ease the cash flow burden and keep the vendors’ shipping product

  • We reduced inventory by establishing a hybrid JIT inventory solution to reduce inventory to a more appropriate amount to maintain the current orders

  • Implemented new control environment including AP, PO, and inventory management system so the Company’s operations become more efficient and transparent

Result

  • Pride Advisory stabilized the financial health of the Client while maintaining a steady growth of new customers 

  • Productivity increased company-wide, and employees became more in control and informed of the tasks they have to complete

 

Bank Line of credit project

Problem

  •  The Client wanted to obtain a working line of credit with a bank to expand operations and potentially open a second location

  • Client needed help finalizing their year-end financials in order to get their tax return complete

Solution

  • Pride Advisory reviewed the last three years of financial statements and adjusted them to reflect a more accurate financial picture of successes based on an accrual basis—not cash—which was the reporting method

  • We reconciled all bank and credit card statements for the year, recorded missing transactions, and made adjusted journal entries to prepare supporting schedules for the tax accountant

Result

  • Our Client was able to negotiate a line of credit with their bank based on the adjusted financial statements

  • The tax accountant was able to prepare the Company's tax return with minimal questions, saving the company time and money

 

Research & Analytics Report

Problem

  • The Client was looking for an offshore partner to deliver its Knowledge Process Services (Business Research and Bench-marking services

  • The Client had decentralized Research and Bench-marking support teams. Each geographic team had their own onshore research and bench-marking support

  • The Client was incurring high costs while the flow of data was restricted to specific support teams

Solution

  • Pride Advisory set up an offshore Research & Analytics team consisting of highly talented individuals, each dedicated to different geographies and sectors

  • Our team worked with the decentralized individual client onshore teams and gathered all existing research materials and bench-marking data from the past external client engagement

  • Pride worked with third party providers through the client to build a robust bench-marking tool, e-services tool for requesting research, bench-marking services, and knowledge management tool

Result

  • Our Client was able to achieve a 40% cost savings plus a 50% reduction in turnaround time with dedicated centralized teams

  • The Client gained access to specialized teams divided by geographies and sectors, which helped them produce consistent and world-class research reports

  • Pride was able to work with third party vendors to help client automate repetitive, transaction duties through the build out of customized online tools

  • Pride Advisory added value to the client through high-end research services from the KPO value chain. Our team then took on the end-to-end Knowledge Services by plugging the gaps and issues identified through the bench-marks made during the Research & Analytics process.