Private Equity Case Study:
CEO Consiglieri

GUIDING A RETAILER BACK TO GROWTH AFTER A BANKRUPTCY

CHALLENGE:
Lack of Preparation for Post-Bankruptcy Growth

A specialty retailer emerged from bankruptcy with a vision to create a cutting-edge, prototype retail offering and scale this offering. Two years in Chapter 11 had left the company’s financial management and infrastructure unprepared to support the new initiatives. The president and private equity firm sought an expert resource to provide the following:

• Rebuild infrastructure, process and financial team
• Enhance operational accounting/financial reporting
• Provide retailing and general management expertise
• Represent the company as CFO in a fundraise

SOLUTION:
Strategic and Tactical Counsel to Guide Decisions

The CMF team’s plan to position the retailer strongly for its next phase of growth included:

• Working with management to rebuild team processes and controls; enhancing month end close procedures and general reporting
• Creating a supportable one-store financial model; rolling out a five-year financial model that included monthly income statement, balance sheets and cash flow statements
• Actively contributing to company operational issues by providing a sounding board for the CEO and private equity fund

OUTCOME:
Solid Infrastructure for Expansion

The CMF team achieved thefollowing:
• Established company’s financial statements; facilitated completion of audit
• Developed a comprehensive five-year financial forecast for the company
• Completed annual budget
• Established and activated regular financial reporting machine
• Recruited a senior finance staff member to join the client team and transitioned CMF out of the company