Interview with Veco
Interview with Han Nuesink, CFO of Veco.
After the acquisition of Veco Precision – headquartered in Eerbeek, The Netherlands – by Gilde Buy Out Partners in 2018, one of the key issues was to improve the cash flow forecasting process by the company in order to ensure the fulfillment of its financial obligations.
Previously cash flow forecasting and other treasury functions were carried out by the parent company, SPG Prints. In fact as a stand alone company, Veco Precision had to implement a simple but reliable treasury function. Veco Precision asked Orchard Finance to organise this with a hands-on approach.
Veco was founded in 1934 and is a leading supplier of high-precision metal components and maintains a track record of innovation. Veco develops and manufactures mission critical precision metal components for a broad range of applications in hightech end markets including digital printing, medical and semiconductor. The Company serves over 1,500 customers across 85 countries worldwide from its sites in The Netherlands (2), United Kingdom, Germany and India.
Han Nuesink was appointed as the new CFO of Veco mid 2018 after the disentanglement from SPG . An Interim treasury analyst from Orchard Finance was hired to execute and improve the daily treasury operations. In addition, on a part time basis, a senior Treasury Consultant came in to direct the Treasury analyst and to initiate and coordinate the set-up of the Treasury function within the company. This proved to be a practical and cost effective approach with exactly the envisaged results. Subsequently, the daily treasury operations were handed over to a newly hired colleague.
Han Nuesink: “We were very happy with the practical and “down to earth” approach which provided us with an optimal level of control on the cash flow forecast process and gave us the opportunity to optimize the cash position of the company and reduce currency exposures. In addition several other treasury improvements were realised including the implementation of a Treasury Management System.”
Nuesink continues: “Like in many other companies there still is a “key man risk” as there is only one employee with practical treasury expertise within the company. This has also been solved by Orchard Finance with their “Treasury Backup Contract”: a team of treasury professionals employed by Orchard Finance who are prepared to take over the treasury routines should this be necessary. If the internal treasury expert of Veco is temporarily not or less available, one of the team members of Orchard Finance can take over.
Peter Paul de Galan, Partner Staffing at Orchard Finance Consultants: “We are very happy to serve clients like Veco to execute and improve the daily treasury operations. In the future our backup team consisting of talented bright treasury consultants will ensure the continuity of the operations at Veco. Our Treasury backup service is gaining popularity rapidly within the corporate treasury departments in The Netherlands. As one of our clients said: covering the key man risk at a low investment by a reliable partner like Orchard Finance is a no-brainer!”
MORE INFORMATION ON TREASURY STAFFING?
For further information on Treasury Staffing issues, please contact Peter Paul de Galan at +316 50248289 or by mail at: peterpaul.degalan@orchardfinance.com.