CASE STUDY
AL REEM GROUP
CFO Services
Overview
Al Reem Group is a leading UAE national brand promoting alternative investments opportunities in a non-traditional and innovative fashion. Headquartered in the capital city if Abu Dhabi, the group is rapidly responding to the fast changes in technology and development. Al Reem group comprises of ten subsidiaries diversifying its revenue and investment streams in the fields of information & technology, e-commerce, construction, capital investment, transportation, general maintenance and engineering and business consultancy.
The Challenge
As one of the fastest-growing companies in Abu Dhabi, Al Reem group founder sought CFO advisory services to ensure the accuracy and credibility of its financial reporting, enhance financial visibility, and determine the company’s cash requirements, cash position, and trajectory.
In such strictly hierarchical family units, it is uncommon to see non-family employees in leadership or management roles such as CEO, COO or CFO. This is because as long as family ventures remain profitable, they don’t see any visible benefit in getting an outside CFO.
The group solicited Assist Plus CFO’s expertise to obtain strategic and financial services to solidly plan the group's future growth plans and associated capital requirements. They were trying to determine the best way to upscale the operations, revamp the financial business procedures, conduct a thorough GAP analysis, finance workforce enhance competency and credibility to meet its future objectives and challenges.
“We had issues, but with your expertise, we overcame them and managed to meet our customer's expectations"
Engineer Saif Al Sayari
Founder and Chairman
Approuch
Assist Plus began serving as the CFO for Al Reem group, the company’s accounting was on a cash basis, leaving them unprepared for potential discussions with lenders or investors about the true profitability and momentum of the business. Smart Rhino Labs also lacked a financial forecast, including the ability to measure and predict cash flow, growth, and profitability by business segment.
1. Led a full SWOT analysis and facilitated dialogue among the owners to achieve alignment on long-term goals.
2. Converted accounting to accrual basis to prepare for conversations with lenders, investors, and auditors.
3. Trained and coached in-house talent on accrual accounting.
4. Designed a financial forecast to project revenue, costs, and cash flow.
5. Provided a monthly financial package showing how results compared to forecast and budget and explaining the related variances.
7. Established new financial reporting to track growth and profitability by business segment.
8. Provided key introductions to deal-related contacts (law firm, valuation firm, and investment bank).
The Result
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Helped owners address key structural issues that had made the company less attractive to investors.
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Trained & developed the in-house bookkeeper to elevate financial record keeping, reporting, and sustainable systems.
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Raised awareness of the company financial performance and position.
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Successful exit with a well-aligned strategic partner, allowing the company founders to continue operating the business autonomously.