Background
Using data analytics techniques to extract sales KPIs from source data and develop trend analysis, to supplement inadequate management information
We performed a vendor due diligence on our client for the sale of its business. Revenue was a large component of our analyses with volumes driving revenue growth. However, the client was unable to provide us with historical volumes to prove the growth hypothesis.
The challenge
The client had not monitored sales volumes for the last three financial periods and did not capture volumes in its management accounts or monitoring system. The client subsequently changed accounting systems where volumes were monitored. However, to perform our due diligence on historical numbers, we needed to obtain sales volumes to assess revenue growth and trends.
The outcome
By using data analytic techniques and tools, we were able to extract and process large amounts of data from transactional information. We obtained the level of information required from the client's outdated accounting system.
This assisted us in performing trend analyses on sales and volumes and assisted the client in identifying operational inefficiencies and errors in its billing process. Such information provided insight to the client regarding its billing processes and assisted it in configuring its operations and systems going forward. We were also able to support the sales process and provide bidders with improved analyses.
