Landing Financial Excellence: Modernizing Accounting in Aerospace

Client Overview

Our client is a manufacturing company specializing in aircraft spare parts for the aerospace and defense industry. Licensed by Lockheed-Martin, they support various out-of-production aircraft, including the C-130, P-3, S-3, C-5, and C-141. Their customers include the U.S. Military, foreign governments, and major manufacturers such as Lockheed, Northrop, and Boeing. The company offers a range of services, including CNC machining, sheet metal fabrication, water jet machining, assembly, tubing, and welding, enabling access to high-quality products at competitive prices.

The Challenge / Mandate

The PE firm had recently acquired the company and needed to institutionalize its accounting processes. They sought an Interim Head of Accounting to introduce sophistication and rigor, including conversion to GAAP, implementing robust processes for inventory valuation and cost accounting, accruals, cash controls, and budgeting. The consultant was also tasked with guiding the Controller, AR, and AP teams to elevate their standards and practices to align with private equity expectations.

Search Strategy

We targeted senior accounting professionals with CPA credentials and substantial manufacturing experience, particularly those familiar with inventory valuation, WIP, and finished goods accounting. The ideal profile included a Big 4 background, followed by controller-level experience in manufacturing environments. Candidates needed to demonstrate a track record of putting systems and controls in place to drive transparency and financial discipline in complex operations.

The Placement

We placed an accomplished interim financial leader with deep expertise in accounting transformation within manufacturing businesses. With prior Big 4 experience and multiple controller and CFO roles, he brought a wealth of knowledge in inventory cost accounting, GAAP conversion, and financial reporting improvements. His background also included extensive work with private equity portfolio companies, enabling him to bring PE-level rigor and standards to the organization. Additionally, his track record in aerospace and defense manufacturing uniquely positioned him to understand the client’s operational nuances and regulatory considerations.

The Outcome

As Interim Head of Accounting, he successfully led the conversion of the company’s financial reporting to GAAP and implemented robust accounting processes for inventory valuation and cost accounting. He designed and introduced a comprehensive monthly close process that reduced reporting timelines by 40%, increasing accuracy and transparency. The consultant developed new accruals, cash controls, and budgeting frameworks while mentoring the Controller, AR, and AP teams on best practices. He uncovered key discrepancies in existing financial models and corrected improper handling of intercompany eliminations, ensuring clean audit readiness. His leadership instilled financial discipline across the organization and built a foundation of scalable processes, enabling the company to meet the stringent reporting requirements of its PE owners and setting the stage for long-term operational and financial success.