The online solution, which can be used to complement a company's existing IT system infrastructure, makes reporting much simpler, quicker and more convenient for portfolio companies.
In real time, August Equity will also be able to monitor the financial performance of its portfolio companies, enabling the private equity firm to work more closely with management to create additional value.
The system allows portfolio companies to update the system directly with their financial information through a secure internet connection. Financials and other performance data are stored in a central database.
The system's key benefits also include improved understanding of company performance through devices such as graphs and benchmarks, reduced chance of error caused by retyping data, round-the-clock access anywhere in the world and automatic email reminders to submit information to the system.
"After a buy-out, we work with management to develop an operational plan, which details the tasks needed to drive action, change and growth," explained August Equity portfolio director Martin Horne. "Operational plan delivery is the management's responsibility, but the company might not have the necessary in-house skills. At the same time, hiring someone permanently isn't always viable."
Previously, August Equity has introduced management teams to relevant consultants to provide advice on business management topics, including sales improvement, pricing policy, website redevelopment, cost structure analysis, cash flow management and HR.
This latest addition comes hot on the heels of HHG's acquisition of Claremont Nursing Home in Caistor, Norfolk, which happened in August.
August Equity completed the management buy-in of HHG in August 2005, when the group operated fewer than 100 beds. Now it boasts a critical mass of more than 700 beds across 18 homes in East Anglia.
"Since the initial investment, HHG has seen tremendous growth," said August Equity partner Philip Rattle, who sits on the HHG board. "August Equity will continue to support the management team's ambitious buy-and-build strategy."
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