OFFICE OF THE CFO - FTI Consulting

OFFICE OF THE CFO

CRITICAL THINKING AT THE CRITICAL TIME TM
FTI Consulting is a global business advisory firm that provides
multidisciplinary solutions to complex challenges and opportunities.
We are 3,800 trusted
advisors serving
clients globally
We combine
unparalleled expertise
and industry knowledge
to understand, protect
and enhance enterprise value
NYSE: FCN
Our breadth and depth extends
across every social, political,
and economic hub across
the globe
$2 bn
Enterprise Value
300+
Senior Managing
Directors
1,300+
Clients
80
Different Disciplines
85
of Fortune
100 Companies
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REPUTATION: A KEY DRIVER OF
ENTERPRISE VALUE
The FTI Consulting service model provides a single source that addresses the interrelated
issues that can affect enterprise value. Our goal is not just to address challenges but to
anticipate them, surround them and deliver sustainable solutions that range from the
immediate to the long term.
Governance Compliance Liability
REPUTATION
Performance
Finance
Enterprise
Value
Information
• Understanding stakeholder perspectives
• Managing brand perceptions
• Leveraging innovative tools
• Protecting and advancing reputations
• Counsel for transformative events
• Shaping the policy debate
Spanning countless industries, FTI Consulting has unrivaled industry expertise, providing
clients with sector depth in the following areas:
Agriculture
Energy and
Chemicals
Healthcare,
Pharmaceuticals
and Life Sciences
Industrials
Banking, Insurance
and Financial Services
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Real Estate,
Hospitality and
Construction
Retail & Consumer
Communications,
Media and
Entertainment
Transportation

WHAT’S IN YOUR INBOX
Today’s chief financial officer (CFO) faces increasing challenges and demands from boards of
directors, stakeholders and other external sources. This expanding role requires balancing
traditional finance responsibilities with strategy, performance, business continuity and operations,
as well as risk, talent and stakeholder management.
INCREASING EXTERNAL RISK FACTORS
• GAAP to IFRS
• FX Risk
• Restatements
• Shareholder Relations
• IPO
• Outsourcing
• Dodd-Frank
• Sarbanes-Oxley
• Globalization Challenges
• SEC Investigation Risk
• Interest Rate Risk
• Regulatory Compliance
CFO’s Inbox
8:00 AM
9:00 AM
10:30 AM
11:00 AM
12:00 PM
12:30 PM
1:30 PM
3:00 PM
5:00 PM
5:30 PM
8:00 PM
10:00 PM
Tax Audit Meeting
Analyst Call / IR Conference
Real Estate Committee Meeting
Capital Committee Meeting
Credit Card Negotiations
Rating Agency Meeting
Monthly Budget & Cost Centers
Board of Directors Meeting
Benefits Renewal
Monthly Close
IT Conversion
Insurance Renewal
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OFFICE OF THE CFO: BUILDING SUSTAINABLE
BUSINESS PERFORMANCE WITH THE 4 Cs
CONFIDENCE, CLARITY, CONTROLS AND CONSISTENCY
To help meet these challenges, FTI Consulting offers The Office of the CFO. Working
collaboratively with CFOs, we provide the objectivity, structure and creativity to design pragmatic
solutions and plans of action that deliver value to their organizations and build sustainable
business performance.
We collaborate to provide transformation services and implement solutions to build confidence,
clarity, controls, and consistency that allow an enterprise to maximize its performance and better
positions it to meet 21st century challenges.
Finance Operations Improvements
Transformation Strategy
ACCURACY AND INSIGHTS
EVENTS
CUSTOMERS
Strategy
CFO
Stakeholders
Performance
Management
Risk Management
Event Readiness
SIMPLIFICATION AND STRUCTURAL CHANGE
COMPETITORS
Process and
Systems
Finance Organization
and Community
PERFORMANCE SUSTAINABILITY
MARKET
Cost and Profitability Improvements
Business Performance Intelligence
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YOUR TRUSTED ADVISOR
Our approach is to work side-by-side with CFOs and the management team and focus on
Accuracy and Insights, Simplification and Structural Change and Performance Sustainability to
provide and implement holistic, practical solutions that protect and enhance value.
• Transformation Assessment and Roadmap
• Shared Services Design
• Financial and Enterprise Data Analytics
ACCURACY AND INSIGHTS
• Finance Systems Requirements and
Implementation Roadmap
• Economic Value and Strategic Planning
CFO
Stakeholders
• Business Performance Management
Strategy and Roadmap
• Planning, Budgeting and Forecasting
• Profitability Analysis
• Cost Optimization
• Tax Optimization
• Dashboards and Key
Performance Indicators
SIMPLIFICATION
Strategy
Performance
Management
Risk Management
Event Readiness
Process and
Systems
STRUCTURAL CHANGE
• Optimal Financial Operating Model
• Finance/Accounting
Operations Improvements
• Balance Sheet/Working
Capital Improvements
• Capital Allocation
• Organizational Analysis and Design
Finance Organization
and Community
• Business Intelligence Strategy
• Business Systems Integration and
Process Optimization
• Financial Analytics Optimization
PERFORMANCE
SUSTAINABILITY
• Corporate Reporting/
Regulatory Compliance
• Operations and Enterprise Risk Assessment
• Controls Redesign and Integration
• Reporting and Communications
• Change Management
• Crisis Preparedness
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CASE STUDIES
FINANCE TRANSFORMATION AND IPO READINESS
Global Hospitality Company
On the heels of an international merger, acquisition by a private equity (PE) investor, and
a restructuring that reduced headcount and relocated company headquarters, a global
hospitality company engaged FTI Consulting to transform the finance organization and
prepare for an initial public offering (IPO). Our professionals partnered with a team of new
finance leaders to develop complex financial models, fulfill various interim management
roles, execute communication and change management plans, and lead several financial
system and process improvement initiatives. Throughout a resource constrained and
segmented organization, the FTI Consulting team was instrumental in collaboratively driving
improvements in the review, accuracy and timeliness of the financial consolidation and
reporting process while leading the creation and standardization of key accounting policies
and procedures. Our project management expertise was frequently tapped by the company
to support high-impact enterprise wide initiatives, including a global financial systems reimplementation,
finance organizational realignment and company-wide preparations for an
IPO, global debt refinancing and tax restructuring. The value derived from our work has
been demonstrated in efficiently upgrading the policies, processes and communications
infrastructure, enabling the finance organization to drive corporate strategic initiatives in a
cost-effective manner. Our colleagues continue to be agents of change to drive efficiency
improvements while building a risk-aware culture.
POST-MERGER INTEGRATION
The Coca-Cola Company
In 2010, the Coca-Cola Company announced that it would acquire its largest bottler,
Coca-Cola Enterprises for approximately $12.3 billion. FTI Consulting provided merger
communications and investor relations counsel to mitigate overall risk and help to advise
The Coca-Cola Company in developing strategies to engage and communicate directly with
key internal and external stakeholders throughout each phase of the transaction.
FINANCIAL SYSTEM OPTIMIZATION
Premier Jewelry Designer
FTI Consulting was engaged by a premier luxury jewelry designer to assist both with business
process improvement and finance department transformation. Our team developed critical
solutions to improve upon organizational effectiveness in managing the “Order to Cash”
cycle and helped the company increase customer service levels. Working capital management
was improved, and inventory levels were reduced through diligent collaborative efforts
between the FTI Consulting and management teams. The company ultimately was better
positioned to use technology, had improved process responsiveness through the inclusion
of best practices and introduced requisite discipline in key processes. The strategic vision for
finance was embraced and the company is positioned for global expansion.
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FINANCE TRANSFORMATION
Global Car Rental Company
Following the acquisition of the business by a PE investor and chief executive led team, a
series of engagements was embarked upon to augment efforts to revitalize the business.
Working closely with the executive team, we assisted in the development of comprehensive
financial models, served in interim management roles, and supplemented management
resources in various financial and accounting operating areas. Our professionals were
instrumental in assisting and managing key ad hoc systems projects focused on business
intelligence to provide the chief financial officer with critical financial and operating reports
to support Securities and Exchange Commission (SEC) and PE sponsor requests. In addition,
FTI Consulting added significant value in analyzing and facilitating asset sales and purchases.
With our assistance, the company was able to successfully transition its headquarters across
the country and prepare an S-1 shelf registration. FTI Consulting also provided the additional
resources needed to prepare the company for ultimate sale to a competitor at a superior
value for management and the PE sponsor.
NAVIGATING A CEO TRANSITION
The Allstate Corporation
The Allstate Corporation was embarking on a chief executive officer (CEO) transition and
needed to have a strong understanding of its key internal and external stakeholders. To
assess the opportunities and challenges facing Allstate, FTI Consulting conducted two
phases of research among elite (e.g., sell/buy-side analysts, institutional investors, media,
trade audiences, regulators) and retail investor audiences, as well as one phase of research
among employees. Based on the research findings, FTI Consulting provided Allstate
leadership with strategic and tactical imperatives to utilize throughout the transition. Our
counsel successfully guided Allstate through a smooth transition, as perceived by all key
stakeholders. In addition, this research provided the new CEO with key concepts and
initiatives for business strategy and corporate positioning.
ASSISTING IN FCPA INVESTIGATIONS
Global Freight Forwarding Company
The Department of Justice requested several oil and gas service companies to provide
information relating to their business activities with Panalpina, a global freight forwarding
company, in order to evaluate allegations of violations of the Foreign Corrupt Practices
Act (FCPA). FTI Consulting was engaged by certain of the companies to assist with the
Panalpina-related FCPA matters, which included the review of thousands of customs broker/
freight forwarder invoices, and an analysis of customs charges and service fees, as well as
visa, husbandry, permitting, and related processes. FTI Consulting experts also analyzed
movements of equipment and reviewed all applicable customs and shipping documentation,
including review of charges for patterns and unusual amounts related to import and export
of rigs and service vessels, port charges, inspections, piloting, and attaining of bonds. We
also assisted with negotiation of the amounts to be paid to vendors for questionable charges
including the identification of unsupported amounts. Our teams worked closely with outside
counsel and company representatives over an extended period of time identifying and
resolving the key issues.
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INVESTIGATING WHISTLEBLOWER ALLEGATIONS
Large, Public International Company
FTI Consulting was contacted by the head of compliance of a large, public, international
company and its outside counsel regarding whistleblower allegations relating to accounting
for income taxes in the consolidated financial statements of the company. The timing was
urgent given the rapidly approaching deadline to file the company’s Form 10-K with the SEC.
FTI Consulting immediately assigned a team, highly skilled in accounting for income taxes
and financial reporting, to work with outside counsel and company’s compliance team to
develop an action plan and commence work. Our team participated in interviews, reviewed
critical documents, focused on historical accounting for the issues that were the subject of
the whistleblower allegations, participated in meetings with the independent auditors who
were literally in the final stages of their audit when the allegations surfaced, and assisted
with overall evaluation of the findings and proposed remediation. Within a very short
period of time, an efficient, focused investigation by the team of attorneys, FTI Consulting
representatives and company compliance representatives was completed, resulting in the
timely filing of the Form 10-K.
RECONSTRUCTION OF GOVERNMENTAL ACCOUNTING RECORDS
Governmental Municipality
A governmental municipality identified apparent discrepancies between its cash-on-hand
and the corresponding project-by-project totals in its accounting system, in connection with
active, authorized, capital project funds. FTI Consulting was engaged to identify the relevant
accounting guidelines, test and reconcile the municipality’s cash activity/balances against
the respective resolutions and disbursement records, then consult on the development of a
database that could maintain pertinent project funding, financial status and progress-towardcompletion
information. FTI Consulting assembled and dispatched a team consisting of
CPAs, CFEs, former public and private auditors, data technologists, and professionals who
previously served as controllers and CFOs. Working closely with the municipality’s financial,
legal, and administrative staff, and leveraging the efforts of third-party contract accountants,
FTI Consulting analyzed and directed the reconstruction of the entity’s accounting records
for all active projects over the course of the prior five years, which included the recognition
of bond issuance proceeds, inter-governmental funding, and detailed project accounting–
with our efforts enabling the successful completion of the municipality’s annual audit for the
sixth year of its examination.
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www.fticonsulting.com
12 OfficeoftheCFO@FTIConsulting.com