Private Equity Case Study:
Financial Deep Dive

VISIBILITY, STABILIZED ENVIRONMENT FOR A HIGH-TECH PORTFOLIO COMPANY

CHALLENGE:
Side-Tracked by High Finance Team Turnover

• A portfolio company with high turnover in the CFO/controller position for the past three years was transitioning out their current controller.
• The company had not issued accurate financial statements in the past 2 months.
• The company needed to stabilize its day-to-day accounting function and implement a monthly close process that produced timely financial statements.
• The company required a better mechanism to track and manage cash and to implement ways to improve cash flow.
• Prior-year audited financial statements had not been issued and this was delaying the company’s ability to obtain much needed financing.

SOLUTION:
Deep Dive Reveals Finance Tool, Process Needs

CMF mobilized a team on site within three business days and performed a financial “deep dive,” which included:
• Quickly assessing the situation, and implementing an action and resource plan needed to remediate the issues
• Transitioning out the current Controller and taking over the CFO/Controller roles.
• Working with the independent auditors to address and resolve open audit issues
• Implementing a detailed 13-week cash flow forecasting tool
• Issuing backlogged monthly financial statements and three subsequent months financial statements

OUTCOME:
Stable Finance Function Positioned for Growth

• CMF implemented a streamlined and sustainable monthly accounting close process that produced timely, accurate information.
• The team enabled prior year audited statements to be issued which were used to obtain bank financing.
• CMF managed and improved cash flow to help get company to the next round of financing.