Case Studies
Client:
Medical Risk Management Company
Problem:
Lagging cash flow was pushing management to prematurely consider raising capital, at an unfavorable valuation, to support operations.
Solutions:
• Advise management on structure of HMO contracts in order to accelerate cash flow.
• Design a detailed cash forecasting model which provided guidance as to the true status of the client’s liquidity position.
Results:
Based on increased cash inflow, and the guidance provided by the model, management was able to postpone the capital raise until a more favorable time.
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Client:
Website Development Company
Problems:
Owner of this company had insufficient financial and business information to make informed management decisions. Operations processes needed an unbiased observer to assist in streamlining.
Solutions:
• Implemented a line-of-business (LOB) financial and business metrics reporting package that allowed the CEO to see profit contribution by LOB.
• Acted as fractional CFO to deal with organizational design issues, improve internal processes, and manage lender relationships.
Results:
CEO could isolate individual contribution by LOB, and was able to focus resources on the more lucrative lines, thereby increasing profitability and accelerating cash flow. Internal processes were improved, equally resulting in increased cash flow and profitability.
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Client:
Wine Distribution Company
Problem:
Struggling high-end boutique wine distributor needed assistance managing liquidity and vendor relationships.
Solutions:
• Fractional CFO engagement to oversee financial matters for the firm
•Liquidity management program implemented with a strong focus on reducing costs with a disciplined cash management and forecasting process.
Results:
Vendor management program implemented, providing client with much needed relief while it addressed operational issues. Increased operational cash flow.
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Client:
Television production firm
Problems:
Company CEO needed general financial and management support to get his company to the next level.
Solutions:
• Brought in as fractional CFO to
– put in place disciplined liquidity management process;
– assist the owner to structure and negotiate employment contracts with key employees;
– assist management to assemble a private placement memorandum;
– work with CEO to design and implement
cost-saving restructuring program.
Results:
Reduced liquidity problems. Key employees retained. Expenses
reduced leading to higher profitability and increased cash flow.
