About Nestlé
Nestlé is a Swiss multinational food and drink processing conglomerate. Founded in 1866, it is the largest food company in the world with annual revenues more than CHF92bn and around 291,000 employees. Nestlé operates in 83 countries and sells its products in 187.
The context
For over 30 years Nestlé have been audited by the same accountancy firm. At the time of this deal new legislation was introduced to tighten rotation rules in the EU. Even though the rules would have minimal impact on Nestlé (who are registered in Switzerland), they had decided to lead their market and undertake this critical group audit tender project.
Summary
- Nestlé worked with Sterling for a period of 15 months
- Through the VDR they shared information between themselves and the four largest accountancy firms: Deloitte, EY, KPMG and PwC
- Using a Sterling VDR would help Nestlé lead their market and adhere to new legislation in the EU
The Challenge
As one of the largest companies in the world, the number of people, their geographical spread and multiple business lines involved were all contributing factors that could make this process more challenging.
The VDR pulled together 130 contributors on behalf of Nestlé from all departments across the globe and allowed them to create a logical and consistent index.
The discovery process was so well planned and executed that a combined 350 accountants only had nine questions between them. This low number among a large group of highly analytical professionals is a testament to how well structured and effective the Sterling VDR was at providing everything Nestlé needed.
The Result
- Nestlé were able to provide all information required to their accountancy firms to undertake their due diligence
- Sterling’s technical problem solving, and hands-on client services helped speed along their already highly-organised VDR index
- The process showed that Nestlé had confidence in their market, and reinforced their status as a market leader
- By using a VDR, Nestlé ensured the most appropriate audit firm was appointed and that significant cost savings were achieved throughout their process.
“Sterling of all of our data room providers were the standout solution, offering a competitive price, but more importantly a solution tailored to our needs of a data room structured as we wished. I have no hesitation in recommending Sterling Technology as a provider of a strong bespoke solution in support of any companies audit tender process.”
Graham Hall, Assistant Vice President, Global F&C Project Manager, Nestlé