MANAGING HIGH GROWTH
Companies growing rapidly are under significant stress as they simultaneously focus on capital raising, scaling their business via sales and business development, expanding their strategic partnerships, and improving the efficiency of their business models. They must juggle cash management and EBITDA with an overriding drive towards profitability. As they prioritize raising capital and attracting appropriate investors, they need to build their capitalization structures and decide whether or not to take on more debt.
We help growing companies with a a range of strategic and operational advisory and support services. We are experienced in operational finance from forecasting models to working capital management, from recapitalizations to investment ROI to scenario building for scaling.
We have more than 30 years of experience interacting with private equity firms, family offices and institutional investors and leaders focused on middle market companies. We can find the perfect capital partner for your needs.
Typical Challenges
Shortage of capital to fund expansion
Too much debt / insufficient equity
Negative cash flow/ excessive burn rate
Cash flow problems related to receivables and payables
Trouble meeting payroll
Inadequate or no financial management
Poor handle on costs and margins
OPERATIONS IMPROVEMENT
Mature Company Challenges
Top line flat or declining
Gross margin or operating margins shrinking
Client concentration challenges
Too much debt / insufficient equity
Cash flow problems related to debt service or working capital
Trouble meeting payroll
Inadequate financial management
Poor handle on costs and margins
Our expertise in operations & finance is derived from our extensive depth addressing many distinctly unique operating company situations from a financial perspective. We are able to quickly assess the financial landscape and business requirements at our clients, prioritize effective responses and then rapidly deploy the right financial and operational solutions to solve operating issues. From installing expense control and strategies for managing working capital to obtaining liquidity financing when needed, from restructuring organizations and staff assignments therein to evaluating the projected ROI from investments.
CFO SOLUTIONS
Imagine trying to get through the day with one hand tied behind your back. Now add a blindfold. How do you make decisions? How do you balance priorities? Vet performance communications to key constituencies and partners? Plan for the future? If your goals are to stabilize your business, scale your business or successfully steer the company ship while managing rapid growth, your job is even harder. And of course, you ultimately need a permanent solution for filling your CFO role and a seasoned perspective and solid advice and counsel on that financial front.
We are the right choice if you find yourself in a situation where you don’t have the right CFO talent – or perhaps any CFO talent – to get the job done. We can rapidly deploy an experienced partner who can work with you to build financial and operational solutions to solve issues as well as strategically plan for future growth and/or exit opportunities. We can negotiate expanded lines of credit and help you raise capital, create a roadmap for expansion, deploy new IT and financial systems, organizationally restructure and coach your finance team.
Execution Problems
- Inadequate operating & financial management
- Delivery or quality problems
Poor response to changes in served market or competition
- Inventory or margin problems
- Weak cash or sales forecasting
- Overleveraged, debt service problems
- Poor handle on key business metrics
FINANCING / RAISING CAPITAL
Key Issues
- Undercapitalized? Overleveraged?
- Inadequate or high cost financing
- Cash squeezed/ Working capital shortage
- Seasonal cash problems
How We Can Help
- Cash flow review and modeling/ projection
- Review of capital structure including debt commitments
- Preparing lender/ investor package
- Identifying and approaching lenders/ investors
- Negotiating terms and agreements
Cash is the lifeblood of a business. Managing it efficiently is essential for success. In some ways, managing cash flow is the most important job of business managers. If at any time a company fails to pay an obligation when it is due because of the lack of cash, the company is insolvent. Insolvency is the primary reason firms go bankrupt.
Obviously, the prospect of such a dire consequence should compel companies to manage their cash with care. Moreover, efficient cash management means more than just preventing bankruptcy. It improves the profitability and reduces the risk to which the firm is exposed.
We have more than 30 years of experience interacting with private equity firms, family offices and institutional investors and leaders focused on middle market companies. We can find the perfect capital partner for your needs.
EXIT PLANNING, M&A
M&A Related Issues
Should we buy another business?
- Acquisition strategy & timing
- Financial requirements
- Integration considerations
Should we sell our business?
- Exit planning
- Buyers analysis and profiles
Valuation and Timing
- Taxation related issues
- Exit execution and due diligence
- Partnership or succession challenges
For most business owners/ partners, selling their business is the biggest sale they will ever make, one in which they have the most risk and where they have the least experience. Additionally, there can be many obstacles in selling a business and successful exits are difficult to time correctly and execute. Many middle market companies and their key shareholders struggle with this issue.
We help by identifying obstacles owners face when selling their business. We have tools and talent to assist clients to overcome hurdles and help them achieve important exit objectives.
Exit related events need to be managed very carefully. If you are the Owner/ CEO of a company preparing for exit, you need to maximize your company’s valuation at exit by building consistent and predictable streams of revenue and profitability and an expanding and qualified base of customers. As you move closer towards the close of your deal, you need to build systems and infrastructure for each stage of growth, demonstrate your team’s ability to successfully scale the business, identify and negotiate with the right partners, select a solid investment banker, prepare for exit by tightly managing the due diligence process and leading you need a successful close.
Managing all the extra responsibilities associated with preparing and implementing an exit strategy on top of your “business as usual” operating company can be challenging. You need to demonstrate the ability to meet sales and revenue goals, customer and channel targets, prioritize talent investments, meet product roadmap milestones all while preparing for due diligence meetings, achieving clean audits, evaluating prospective exit partners, and trying to retain your key hires with a creative platform of incentives.
We have “been there and seen that” multiple times on the exit strategy front. We are experts in late stage fundraising and debt refinancing, capital table recaps, investment prioritization and organizational restructuring. We know how to manage profitability as a business scales, prepare for due diligence deadlines, build forecasting capabilities, successfully fine tune enterprise-wide systems, update objectives, roll out company-wide goals & metrics, coach team members.
SPECIAL PROJECTS
Do you need help with a special or one-time project, such as one of the following:
- Due diligence
- Deal negotiation
- Acquisition search
- Projections/ financial models
- Competitive benchmarking
- Digital transformation
- Marketing finance/ ROI
- Recruiting assistance
Our highly experienced and turn-key assistance in any of these project areas can free you up to stay focused on running the business.