Model your cash flow forecasts and manage your indebtedness

230

M€ in sales, with annual growth of 20%

1

FP&A model in place for budgeting and reporting

50

new gyms a year on average

Background

With a network of 260 locations, this group is one of the major players in the French fitness industry. Following the implementation of a budgeting model on Anaplan, the conditions were ripe for a more detailed approach to debt management based on cash flow modeling.

Challenge

Develop the Finance team's ability to envisage investment and financing scenarios directly linked to cash flow forecasts, borrowing conditions and interest rate assumptions.

Approach

Keyrus Management supported the Finance team in progressively modeling the components of a global vision of the Group's cash position: - transposition of business forecasts into operating flows, - modeling of investment flows, - simulation of loan repayment schedules, - integration with the FP&A model to manage the impact of assumptions on earnings and debt (amortization schedule for investment forecasts, monitoring of debt covenants), - visualization of cash flow trends to facilitate arbitration on investment and loan repayment schedules.

Key results

Global integration of cash flow forecasting components

Facilitating arbitration and financial communication

Integration of Budget and Treasury management modules

Benefits

This 1-month initiative totally transformed the management discussion process by linking business forecasts, investment plans and financing strategies. It also improved control over cash flow forecasts, and facilitated argumentation with funders through new scenario visualization possibilities.