Financial advisory for a natural resources portfolio company
Financial advisory for a natural resources portfolio company
| Industry | Natural resources |
| Services provided | Management advisory services, financial and KPI reporting assistance |
Key learnings
- Cash management: Understanding burn rate and profitability timelines is essential in high-capital industries
- Operation value creation: A strong operating model drives better decisions and investor confidence
- Importance of financial and KPI reporting: Tailored reporting frameworks are vital for private equity-backed businesses to meet governance and performance standards.
BDO was engaged by a private equity sponsor to support a natural resources portfolio company in implementing robust management and board reporting frameworks. The business was experiencing a substantial cash burn, and the timeline for profitability was unclear, prompting the need for deeper financial and operational insight.
BDO provided management advisory services, including:
- Financial and key performance indicator (KPI) reporting assistance
- Operating model development
- Cashflow reviews
- Forecasting and performance tracking
- Capital solutions advice
- Initial discussions revealed that both the financial and operating models required updates to support effective reporting and strategic decision-making.
Outcome
BDO delivered a management and board reporting package that:
- Provided clear visibility into financial and operational performance
- Supported ongoing cash management and strategic planning
- Was successfully transitioned to the finance team for continued use
- The engagement also laid the groundwork for further advisory support, including interim management assistance if required.