Integrating acquired businesses into an existing structure can be a highly complex affair. For that reason, Storskogen and J.P. Morgan proactively sought to understand the cash management needs and current processes of the SMEs as a critical first step. To bring business owners up to speed, Storskogen and the bank shared product illustrations and best practices around cash pooling and drew up business cases and cost benefit analyses to facilitate the SMEs’ bank transition and cost concerns.

The joint effort led to the deployment of an APAC-centric multi-entity multicurrency notional pool (MEMCNP) for Storskogen in Singapore, which went live in March 2023. To address the requirements of Storskogen’s Group Treasury and the acquired entities, the pool is supplemented with domestic and cross-border physical and automated sweeps, as well as other tailored sweep parameters that delivers high-level flexibilities to effectively manage cash at both the group and entity levels.

“As a next step, we are looking to connect our APAC MEMNCP with our global cash pool in Amsterdam to drive greater cash utilisation and efficiencies,” explains Frida Holmer, Senior Cash Manager.

Best practice and innovation

With different business styles, banking structures and cash and liquidity processes, acquisitions are often tricky to integrate into the financial structure of a parent organisation. But Storskogen did this seamlessly by putting in place a sophisticated regional liquidity pooling structure that is supplemented by complex and carefully designed sweep parameters to effectively address the cash management and business needs of both Storskogen, as the new owner, and the CEOs of the respective SMEs.

The complex structure deployed for Storskogen is the outcome of in-depth discussions that Storskogen and J.P. Morgan held with the acquired companies to understand their needs and concerns, while sharing best practices and business cases to assure them of the benefits of participating in the pooling structure. Through active financial management and governance, Storskogen will be able to ensure the companies continue to have functioning business plans and budgets to prioritise long-term results.

This is an exemplary case which demonstrates how close collaboration with its banking provider can drive exceptional outcomes for Storskogen. The scalable and robust structure combined with the proven engagement model will enable Storskogen to focus on supporting its businesses in strategic and operational matters, without stressing over banking matters.

Key benefits

• Cost savings.

• Process efficiencies.

• Increased automation.

• Improved visibility.

• Increased system connectivity.

• Future-proof solution.

• Exceptional implementation (budget/time).