The Client
A family-run German automotive supplier (revenue > €500 million) operates a central manufacturing and logistics center in Portugal. Following the sudden departure of the local CFO, there was a lack of financial leadership at a time of high capacity utilization, demanding OEM audits, and volatile supply chains. Headquarters needed reliable figures, and local stakeholders needed quick decisions. To ensure the ability to act, a Portuguese interim CFO with a deep understanding of local legislation and the requirements of global automotive customers was appointed.
The Challenge
The abrupt departure led to risks in liquidity management, supplier communication, and compliance. Monthly closings were regularly delayed, forecasts were inconsistent, and open items increased. At the same time, local requirements (including tax and reporting obligations) had to be synchronized with group guidelines (IFRS reporting, investment approvals, OEM scorecards). Added to this was increased pressure from material price volatility and bottlenecks in the supply chain. The challenge: Immediate stabilization of core processes (cash, closing, controlling), ensuring local compliance, and restoring transparency for the German headquarters—without impacting ongoing production.
The Solution
Within a week, the local interim CFO took responsibility for finance & controlling, treasury, and local tax issues. Priorities:
- Cash & working capital – daily liquidity monitoring, clear approval guidelines, focused receivables management;
- Fast close – standardization of posting and reconciliation processes, cut-off discipline, close interface management with purchasing/logistics;
- Transparency & control – introduction of a uniform KPI board (DSO/DPO, inventories, deviations), rolling forecast over 13 weeks;
- Compliance – Ensuring local obligations (e.g., sales tax, SAF‑T/PT reporting) and consistent IFRS reconciliation. Weekly SteerCos with site management and German headquarters ensured quick decisions and no escalations.
The Results
After eight weeks, cash and closing processes were stable: the monthly closing was shortened by ~30%, forecast accuracy >95% on a 4-week basis. DSO fell by 7 days, inventory range was reduced by 8%, freeing up liquidity. Overdue liabilities were negotiated in a structured manner, and delivery capability and OEM scorecards improved. Local compliance audits were completed without findings. After five months, a smooth handover to the newly hired permanent CFO took place; all measures, dashboards, and guidelines remained in place. Result: Sustainable transparency, improved financial metrics, and robust governance between the Portuguese company and German headquarters.
Looking for experienced interim leaders to drive transformation and ensure business success? Contact Dr. Thorsten Dörr, Managing Partner at Boyden Interim Management, to explore tailored solutions for your organization.
