Practus’ CFO Solutions assisted Paypro in achieving 95% of contract novation within 15 weeks and creating a database repository in MS Access for entire existing and new novated 500+ contracts and addendums within two months.
|Client Name||Industry||Ownership||Management||No. of Employees||ROI On Fee||Size||Project Duration|
|Paypro||Professional Services||PE-Backed||Professional||~20,000||5x||$100 million||6 months|
About The Company
A large India and Southeast Asia-focused Private Equity firm acquired a global human resource firm’s (AH*) payroll processing business (Paypro) in the Asia Pacific region which covered 600 very large corporations in the Asia Pacific region. Paypro has significant business in China, Hong Kong Singapore, and India, run through 4 different legal entities with the back office in India. Practus was called in by the PE Fund to act as Interim CFO and manage the transition.
- Manage entire subsidiary structure for shares transitions and business purchase agreements. Involvement in interactions with external advisors for the study of transfer pricing regulations and coordination with investors.
- Ensured Novation of the 500+ client contracts having varied terms within time and mapped them to more than 50 clauses while each of these clauses had anywhere between 1 to 10 variations for consideration. Created an MS Access database with parameterized contract terms and document storage.
- Project managed transition plan and worked with the operations team to ensure the whole engagement is completed within 6 months.
- Prepared bridge for a working capital facility with weekly forecasts and red flagging mechanism.
- Assisted in setting up the new accounting systems and processes, setting up a delegation of authority matrix, and involved in the computation of the Purchase price consideration and calculation of Goodwill along with a Big 4 firm.
- Advance Cashflow call-outs to investors assisted them with enough time to arrange the funds and meet requirements in time.
- Achieved 95% of contract novation within 15 weeks of coming on board.
- Opening of bank accounts within 4 weeks of commencement of the engagement and smooth banking operations and relationship.
- Implementation of systems and Processes – Tally ERP for accounting, control over PO commitments, and Timely delivery of MIS Reports.
- Creation of database repository in MS Access for entire existing and new novated 500+ contracts and addendums within two months.
- Allowed adequate time for the new CFO to be able to settle into this role while Practus in parallel assisting in operations and managed smooth transitioning of the role during his initial period.