For private equity company Wadinko, having a centralized reporting of its investment landscape is of paramount importance. CXO Software provides the firm’s management team with a centralized platform offering detailed insight to keep track of its financial investments and their performance.
Established in 1992, Wadinko is a private equity company working to promote economic activity and employment in the regions of Overijssel, the Noordoostpolder and southwest Drenthe in the Netherlands. Its objective is to develop fruitful long-term relationships with innovative businesses – both new and existing – that have clear growth potential and stand to play a significant role in improving regional economic structures.
Through its partnerships, Wadinko provides companies with a combination of knowledge, management support and private equity for growth. The businesses, which are mainly active in the manufacturing and corporate services industries, are typically looking to grow or innovate, though Wadinko also works with businesses that are looking to demerge or that are encountering succession challenges.
The need for centralized reporting
Prior to using CXO Software, data provision was proving a major problem for Wadinko. As the number of companies under Wadinko’s umbrella grew, the varying reporting styles of these businesses created significant discord and misalignment. In particular, it was becoming difficult for Wadinko to keep track of its financial investment in each business and to accurately gauge how well these investments were performing.
Once Data Warehouse Adapter (DWA) was installed and the data-loading process was set up, a requirement analysis was carried out, in consultation with the Wadinko management team. Reports that responded to Wadinko’s information requirements were then developed with the support of CXO consultants. Wadinko staff subsequently received training on using CXO Software to enable them to manage the application themselves. Wadinko is now fully responsible for application management.
Clearer views, better decisions
Now installed across its operations, Wadinko is able to accurately visualize its shareholdings in each investee company (as well as those of other investors) and to track the performance of these investments. The commenting features within the reporting dashboards also makes it possible to grasp what’s going on behind the figures and to save this information securely. For Wadinko, keeping track of its participation percentages – and what these percentages generate – is essential. Having a clearer picture of its activities and the book value of each investment allows the management team to make better decisions; decisions guided by precise financial data.
One golden source of data
Through CXO Software, Wadinko’s investee companies also have access to a centralized system for uploading and commenting on financial data, and for producing financial statements. A respective finance team is able to input or upload data relating to their own participation (via DWA) to a centralized location each month. Each company’s information is then collated in a central location to provide HQ with a comprehensive picture of its investment activity. The Wadinko management team and board can then draw on this information to support the company’s monthly financial reporting activities.