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Generational Business Transformation

Modernising operations for future success

Environment

XYZ Pty Ltd, a third-generation family-owned manufacturing business with an annual turnover of $25 million, has been a long-standing client of DAB. The company, having evolved through generations, inherited an old-school approach to business management. This traditional mindset resulted in a significant gap between the board’s advisory role and the internal accounting department, which was staffed by family members. The financial and business management was often overlooked or conducted with a retrospective focus. Further, the company’s leadership lacked the awareness of the need for improvement, a common scenario encountered by DAB in many of its appointments.

Need/Event

With the transition from the second to the third generation, the new, younger ownership brought a willingness to embrace change, prioritising sales growth over traditional paperwork processes. Leveraging over a decade of trust built with DAB, the third generation was open to transformative changes.

Strategic planning sessions were initiated with a clear goal in mind, leading to a meticulously projectmanaged execution of the transition plan.

Approach

  • Tax-Efficient Transition: Facilitated a tax-effective exit for the second generation, including refinancing property assets and transferring them to the business to accommodate the third generation’s takeover.
  • Asset Restructuring and Risk Management: Reorganised and risk-managed the new owners’ assets.
  • Management Reporting System: Appointed a Virtual Finance Controller (VFC) to implement new management reporting systems, budgeting, cash flow analysis, and overall financial oversight.
  • Outsourcing the Accounting Department: Transitioned to a fully outsourced accounting department that delivers monthly accounts within a 10-day turnaround, addressing previous issues of lowstandard accounting, tax, and BAS/IAS reporting due to technical deficiencies and absenteeism.
  • Team Structure:
  • VFC initially took a hands-on role, transitioning to oversight after the initial phase.
  • Client Relationship Manager (CRM) took charge of direct management of the accounting department and client interactions.
  • An assistant accountant supported the CRM.
  • Accounts payable and document management roles were specified to enhance efficiency and transition from paper-based processes.
  • A HR payroll system was implemented to address complexities arising from shift work and awardspecific calculation

Results

DAB supported the third generation in successfully assuming business ownership, marking a significant transition in the company’s management and operational strategies. This support helped bridge the gap between traditional practices and modern, efficient business management, ensuring a smoother transition and positioning the company for future growth.

Solution Team

DAB

Business Advisor

DAB Client Manager

DAB

Client Manager

DAB

Finance

DAB Wealth

DAB

Wealth

DAB Accounting

DAB

Accounting

Solution Team

DAB Business Advisory

DAB

Business Advisor

DAB Client Manager

DAB

Client Manager

DAB

Finance

DAB Wealth

DAB

Wealth

DAB Accounting

DAB

Accounting