Industrial Refrigeration Case Study: How to Digitize an Engineering Business

A successful business in the industrial refrigeration sector requires more than just technical expertise—it demands surgical precision in financial planning. Petro Arabadzhy, owner of Alternative Technologies, shares his experience of transforming his financial department with the help of a Fractional CFO from Finmap.

About the Company: Experts in Industrial Refrigeration

Alternative Technologies is a full-cycle engineering firm specializing in professional refrigeration solutions for the Agro, HoReCa, and Retail sectors. While the company was officially established in 2010, its core team consists of specialists with over 20 years of experience in executing complex, high-scale projects.

The team provides comprehensive "turnkey" solutions, handling every stage of the process in-house:

• Engineering & Design: Developing customized, energy-efficient refrigeration systems.
• Direct Import: Sourcing equipment directly from leading manufacturers in Italy, Germany, Spain, Finland, and France.
• Installation & Commissioning: Utilizing a proprietary, licensed installation department.
• Maintenance & Modernization: Providing full technical lifecycle support for all facilities.

Due to its cross-sector expertise and robust supply chain, Alternative Technologies consistently ranks among the TOP-10 players in the Ukrainian market, often holding a top-3 position in specialized project categories. For owner Petro Arabadzhy, the priority is not merely selling hardware, but delivering innovative, high-ROI solutions for clients.

Market Challenges and Industry Specifics

The industrial refrigeration market is characterized by high capital intensity and complex logistics, presenting several unique challenges:

• Sector Diversity: Operating simultaneously in Retail and HoReCa requires extreme flexibility due to differing procurement cycles and payment terms.
• Operational Complexity: The business integrates three distinct models—import, specialized services, and direct sales. This creates a high demand for precise accounting to track the profitability of each individual project, rather than just the company’s bottom line.

Financial Transformation with a Fractional CFO

The "Before" State: Excel and Intuition

Prior to partnering with Finmap, the company already had a functional setup with a head accountant and a financial analyst.

• The Tools: All reporting (P&L, Cash Flow) was managed via Excel.
• The Problem: While the owner understood core figures within a 2% margin, management remained largely intuitive. For example, tax planning (VAT) was reactive and handled on a case-by-case basis rather than strategically.

Why Bring in a Fractional CFO?

The primary driver was a lack of structured financial forecasting. Petro had been seeking a CFO for some time, recognizing that scaling required a "global vision" beyond the capacity of standard accounting.

• The Goal: "Do not scale chaos." As the business diversified, the owner needed a strategic "right hand" to consolidate data and enable data-driven decision-making.

The Process: Overcoming Internal Resistance

Transitioning to an external CFO was a shift for the entire organization.

• Team Dynamics: Initially, the in-house accounting team perceived the external expert as a threat to their domain.
• Resolution: Through transparent communication over the first six weeks, the team realized the CFO was there to empower them, not to audit them. This shifted the internal culture from resistance to collaboration.
• Remote Integration: Operating in a remote format was seamless, as the company had already optimized these processes during the COVID-19 era.

The Results: From "Diagnosis" to "Treatment"

After three months of collaboration, the company implemented several high-impact tools:

1. Project Profitability Calculator: A new model was developed that incorporates overhead and operating expenses into each project’s cost. This revealed the true net margin of every contract.
2. Strategic AR Management: The company now quantifies the exact cost of payment delays, providing leverage during negotiations and allowing for a stricter policy on late-payment penalties.
3. Sales Performance Metrics: Monthly reporting for the sales department was introduced, linking individual performance to real-time profitability targets.
4. Asset Optimization: Management gained clarity on inventory turnover, preventing capital from being "frozen" in warehouse stock for extended periods.

Petro Arabadzhy’s advice to fellow owners:

"Don't delay. The longer you wait to treat financial inefficiencies, the worse they become. Once you see the actual, calculated data, you finally know exactly where to act."

Why a Fractional CFO is a Strategic Must-Have

Partnering with a CFO from Finmap is not about bookkeeping—it is about moving from "blind" management to strategic growth.

• Reclaim the Owner's Focus: Stop getting bogged down in manual calculations. Focus on strategy while a professional builds your financial architecture.
• Identify Hidden Leaks: A CFO spots where capital is being lost—from logistics inefficiencies to low-margin projects that only look profitable.
• Data-Driven Motivation: Transparent profit calculators show managers exactly how their actions impact the company’s (and their own) earnings.
• Global Expertise: You gain access to a specialist who has seen hundreds of cases and knows how to optimize taxes, manage capital, and scale without friction.

Don’t wait for financial "symptoms" to become critical. Start building a financially healthy company today!

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