Business Processes/Workflow Definitions are the “Chair” (i.e., gatekeeper) of working capital/EBITDA practices – That is, it is not usual to achieve ongoing, long-term working capital/EBITDA internal practice improvements without revising affected workflow processes accordingly.

And, it is difficult to change workflow processes without “concurrence” from the “triumvirate” of: (1) organizational responsibilities, (2)external relationship agreements (i.e., customers, suppliers, employees) and (3) deployed IT capabilities (i.e., specifically the way in which business application capabilities are actually utilized to conduct those workflow processes).

An example – Debtor Days could be permanently reduced by a significant number of days on a recurring basis, (i.e., possibly as much as 15 days or more) with minimal investment and/or expense IF invoices were generated and delivered upon completion of the sales order obligation (i.e., vs. month-end).That is a workflow change (i.e., because those specific days are locked-in by that defined workflow). HOWEVER: (a) it’s a useless workflow activity change unless customers agree to it; (b) it’ll not be implemented in practice if the business application cannot support it; and (c)it’ll never be adopted in practice if associated departmental responsibilities are not realigned accordingly. “Concurrence” from all three is necessary.

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Incidentally, that opportunity for improvement existed, though unrecognized, while the company was being diligenced.

And, had it been appropriately known by the Equiteer pre-close, it could have been defined as a quick-hit, low-hanging-fruit, post-close future-value-add initiative to be realized early on in the holding period.