Forest Products Company

Interim CFO, Start-up Help: Private Investors Enter Forest Products Market

CLIENT:
A private investment group with no previous experience in the forestry or wood products industries bought disparate units of a national timber company, including over 200,000 acres of timber land, several lumber mills, a wood treatment plant, and a sales and marketing unit. While these operating units were geographically close, all had reported directly to the parent’s regional headquarters and had little direct contact with each other.  The client was referred by their CPA audit firm.

THE CHALLENGE – INTERIM MANAGEMENT:
Most of the administrative infrastructure remained with the seller. With 30 days to go before the close of the sale, an entire infrastructure needed to be put in place including accounting, human resources, purchasing, information technology, insurance, and benefit plans. Morrison was brought in to serve as interim executive Chief Financial Officer and to develop first interim financial management, then a permanent administrative infrastructure.

THE RESULTS:
At the close of the sale, an accounting and finance staff had been hired and an interim arrangement made for information technology services. About 500 employees of the selling company were screened for rehire, human resources and purchasing managers were in place, and insurance policies had been secured. Benefit plans were in place shortly after, followed by selection of a permanent IT solution. The acquisition has been a success and is now an important player in its industry.