Systems Control

The Challenge

Upon acquiring Systems Control—a manufacturer of custom control enclosures—Comvest Partners faced a critical blind spot in their investment thesis. They had purchased the business with a 90%-confident hypothesis regarding operational margin improvements, but lacked the granular data to execute it.

The company's P&L showed Cost of Goods Sold (COGS) as a single combined line. To deploy their cost excellence plan, the sponsor required a detailed breakout between Freight, Materials, and Labor.

• System Limitations: The company utilized the SyteLine ERP, but most reporting was manual, slow, and siloed in offline spreadsheets.
• Reporting Void: While the business had a functional transaction accounting department, it completely lacked a financial reporting function.
• Revenue Recognition Lag: Revenue was recognized only at project completion, creating highly unpredictable monthly revenue swings.

The Solution

Quantum Financial Consultants audited the SyteLine configuration and identified a system setup issue. Although SyteLine allowed operational data to capture Freight, Materials, and Labor cost centers separately, a configuration error was automatically combining these inputs at the accounting aggregation layer.

QFi quickly resolved this configuration, unlocking immediate visibility into the separate cost drivers. Following this quick win, QFi was re-engaged to restructure the firm's revenue recognition.

The Results

Unlocking COGS transparency allowed Comvest Partners to validate their thesis and deploy a Cost Excellence plan, capturing immediate margin savings. Transitioning to Percentage of Completion stabilized revenue visibility, turning a chaotic monthly P&L into a highly predictable, board-ready asset. This reporting clarity directly paved the way for a successful **$1B exit** and a **5x return** for the sponsor.