A Return to Profitability

SERVICE : CFO ADVISORY
Equipped with timely, reliable financial statements, the CEO was able to make real-time decisions and better predict both new threats and opportunities.

The leading manufacturer and installer in the commercial construction industry, in the soft commercial construction market and saddled with an acquisition that failed to reach the exceptions, incurred substantial losses for 18 months. The year-end physical inventory showed major anomalies and forced the organization to change the inventory downwards by a significant amount. The lender of the company had already started to withdraw from the availability of funds and the reduction of inventories resulting from them. The CEO has then reachout the Live CFO for assistance.

The Live CFO Financial Advisory Team rapidly evaluated the situation, then developed a restructuring plan and a financial management plan. These proposals involved a complete overhaul of the ERP and Financial Accounting systems of the client, in particular the inventory management systems. Turn Point then negotiated with the lender to negotiate a 6-month default, so that it was not necessary to find new and more costly financing. Live CFO was able to negotiate with the lender to give maximum access to the available fund.

When the company was stable, Turn Point developed a financial reporting package that offered timely, reliable, actionable information to the management team.

The company returned to profitability within six months of retaining Live CFO. The following year, the company grew 28% and produced 11% EBITDA.