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Case Studies

Brief Overview:

A well-established service provider finds itself trying to navigate a financial recovery from the 2008 "Great Recession” without its internal or external financial team intact. Read the solutions that helped create a 250% increase in cash reserves and savings after two years.

Business Challenges

  • After many successful years, a service company with annual revenues of nearly $5 million, has a significant decline in top-line revenues of slightly more than 20%. Compounded by the 2008 economic crisis, the company now finds itself in a major debt dilemma.
  • The prior financial team including the CFO and internal and external accountant left the organization shortly after 2008 leaving the company without proper internal financial controls.
  • Management became concerned about the quality of its remaining financial team and consistency of service by the newly hired outside accounting firm.
  • Financial reporting was two years behind schedule and as a result, created an adverse relationship with their lender regarding important investment property and other asset holdings.

Business Solutions

  • Conducted a review and analysis of current cash-flow, projected cash flows (both present and past due expenses along with historical and present revenues including sources), and examined the balance sheet for liquidity and potential repositioning of assets.
  • Provided CFO and comptroller type financial oversight services for the client including assistance with assessment of potential large expenditures, financial management of cash and other assets, and evaluation of budgets.
  • A debt elimination strategy was developed and implemented over an 8 month period to pay off all past due obligations and keep re-occurring expenses current.
  • On the client's behalf, began direct negotiations with the lender and provided current financial reporting to demonstrate to the bank that all loans can be rated in good standing.
  • Assisted the client in right-sizing the business including reduction of redundant staffing and expenses, as well as tighter restrictions on new expenditures.
  • Assisted the client in establishing internal financial controls and appropriate cash-management procedures.
  • Performed a confidential search and helped the client select and hire a new internal financial team including bookkeeping, accounts payable and an external accountant.

Download the case study here.