Case Study:
Kano Laboratories

Empowering Financial Clarity and Agility for Kano with Compass® by EBM

ORGANIZATION:

Kano Laboratories

LOCATION:

Nashville, Tennessee

INDUSTRY:

Manufacturing

Introduction

Kano Laboratories, a well-known manufacturer of industrial lubricants and penetrants, operates across multiple entities, each with its own ERP system and unique data structures. Consequently, Kano faced challenges with fragmented and inconsistent data, complicating consolidated reporting and financial operations.

Manual processes, unreliable data attribution, and limited visibility into cross-entity sales hindered the company’s financial operations. These inefficiencies not only not only slowed decision-making but also had the potential to delay key M&A processes such as Quality of Earnings (QoE) evaluations and M&A preparedness.

To address these challenges, Kano partnered with EBM to deploy Compass, a modern data analytics platform designed to support financial operations, sales insights, operational efficiency, and strategic decision-making. More than just software, Compass provided Kano with access to a cross-functional
team of experts in finance, data, and business strategy, helping to transform data into clarity, structure, and actionable insights.

“…This is AWESOME. We never were able to look at material margin on an SKU and customer basis! This opens a whole new frontier for us.”

– Kano CFO

Compass brought not only a high-end software, but a dedicated team of analytics experts.

With Compass, month-end roll forwards were cut by nearly 67%.

Challenges:

  • Two distinct ERP systems managing financial and transactional data for separate entities.
  • Inconsistent data sources and attribution, resulting in a lack of a single source of truth.
  • Manual, time-consuming, and error-prone month-end reporting processes.
  • Difficulty in aligning and consolidating data for QoE and other key financial analyses.
  • Limited insight into sales trends, particularly for sales that spanned the two operating companies (e.g., cross-sales) and material margins.

Solution:

To address these issues, Kano partnered with EBM to implement Compass, a modern data analytics platform designed to unify complex business data, automate reporting, and deliver deep insights across finance and operations.

Compass brought not only a high-end software, but a dedicated team of analytics experts who worked alongside Kano to transform their fragmented data into a strategic asset. The platform integrated disparate ERP systems, established a cloud-based data lake, and delivered customized reporting frameworks for leadership, lenders, and advisors.

As a result, Kano achieved a centralized, reliable foundation for reporting and decision-making, saving time, reducing manual errors, and enabling more confident and agile actions.

Key Improvements:

By adopting Compass, Kano realized transformative improvements:

  • Standardized Data Architecture: Mapped and harmonized financial and transactional data across two ERP systems into a unified framework.
  • Centralized Source of Truth: Built a scalable, cloud-based environment to support cross-functional reporting and reduce duplication.
  • Faster, Smarter Reporting: Automated monthly roll-forwards, business reviews, and lender packs, significantly reducing reporting timelines.
  • Real-Time Margin & Sales Insights: Delivered continuous visibility into material margins and cross-entity sales performance.
  • M&A-Ready Infrastructure: Structured data in a ready-to-share format for investment banks, QoE providers, and other third-party stakeholders.

Results

The impact of Compass on Kano’s operations was substantial:

  • Time Savings: Month-end roll forwards were cut by nearly 67%, reducing reporting time from multiple days to under one business day.
  • Cost Efficiency: Automated data consolidation and reporting lowered reliance on external advisors and manual work, decreasing operational costs.
  • Cross-Functional Visibility: Executives gained timely access to insights across departments, improving alignment and strategic responsiveness.
  • M&A Readiness: Kano is now better positioned to support diligence requests with accurate, standardized, and quickly accessible data
  • Scalable Intelligence: With a stronger foundation, Kano can enhance insights and analytics as it expands.