Treasury Practice

Problem Solved: Paul Goldberg, Dover Corporation

Published: Sep 2006

As a conglomerate of 38 separate operating companies, Dover Corporation is run on a decentralised basis.

Paul Goldberg

Treasurer and Director of Investor Relations

Dover Corporation manufactures a wide range of industrial products and components, which are sold into a variety of end-markets, including foodservice, environmental, as well as energy and product identification. Based in the US and traded on the NYSE (New York Stock Exchange), Dover consists of 38 independent operating companies, supplying customers in 100 countries and employing over 31,000 staff worldwide. In 2005, Dover’s turnover was $6 billion.


The company’s treasury is based in New York, with regional treasury staff based in Europe and Asia. In addition, each operating company has its own financial staff performing day-to-day treasury operations.

Until 2003, Dover’s eight Singapore subsidiaries individually managed their cash flow positions, denominated in US dollar, Singapore dollar and euro, with no sweeping structure in place. Paul Goldberg, Treasurer and Director of Investor Relations at Dover, explains: “Some of the companies had been established for a while and had plenty of cash inflows to match their outflows, but we had several companies that were in the early growth stage, and they were constantly short in cash. We struggled with developing a methodology to efficiently utilise cash already existing within the region so we would not have to continue to pump it in from outside the region.” Dover needed a solution that would enable the more efficient use of cash, while also providing the New York treasury with greater visibility over the subsidiaries’ cash flow positions.


In an attempt to overcome this problem, Dover conducted an informal RFP process, interviewing several different banks operating in the region. The decision to appoint Deutsche Bank was based on a number of factors. Dover had a long-standing relationship with Deutsche Bank, particularly in Europe, and felt that the bank had a strong reputation for providing cash pooling services to a high standard. The bank’s experience in the region was also an important factor: “We looked at our list of banks and at that time Deutsche Bank had the best position in Singapore,” says Goldberg.

Deutsche Bank set up a cash pool for Dover’s eight subsidiaries in Singapore, which enables excess cash denominated in each company’s operating currency to be swept to a holding company at the end of each day. Shortfall cash positions are likewise automatically funded by the holding company’s account. The operating companies are able to access their account details using Deutsche Bank’s online payment and account information system, db-direct internet. Meanwhile, Goldberg is able to obtain an overview of all the accounts each day. “From a corporate perspective, we can now see what is happening in the holding company and in the overall region on a consolidated basis. As a result, we can monitor much more closely which companies are using cash, creating cash, and ultimately what our cash balances are in the region. We do all that via db-direct internet.”

Deutsche Bank’s solution has resolved the key issues of efficiency and visibility. “The benefits are clear,” says Goldberg. “We have been able to manage cash much more efficiently in the area. We have also avoided the need to make additional capital contributions into the region as we now have this excess cash position. This can be used to fund expansion both in and outside Singapore – in China, for example.”

Looking forward, Deutsche Bank’s solution may be adapted to incorporate subsidiaries from other countries within the region. “As far as future developments are concerned, as we add companies in the region – which we do all the time – we just plug them into the cash pooling system and they are very happy. Currently, we are contemplating expanding the cash pooling system and setting up cash pools in other countries in Asia, such as Malaysia and Thailand.”

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