Corporate Renewal Service, Interim Management
Description of Client Company: Company provided services reimbursed under MedicareSituation as described by Corporate Stakeholder:
- CFO leaving Company and the borrowing base was a complicated manual process. The Company did not have sufficient depth in financial management to complete this task.
- Management and Board represented that they have good cash flow with a good business model.
- The assignment should not last long, maybe 30 days.
- Immediately upon meeting with the outgoing CFO, it became apparent that the Company’s financial statements were incorrect.
- In addition, the Company’s cash flow and financing did not meet the company’s requirements.
- As engagement progressed, it became clear that this was a turnaround.
- Informed management and board of the state of the Company’s record keeping
- Informed management and board of the true cash flow via a thirteen-week cash flow model
- Illustrated for management and board the current financing arrangement and how it did not support the business under the current revenue model
- Managed weekly cash flow against the thirteen-week forecast.
- Recommended strategic approach to business model enabling use of existing cash flow during process of restructuring the business.
- Interviewed CFO candidates
- Company changed business model enabling reduced costs for enhanced cash flow allowing for opportunity to restructure the business model
- After three months consulting with the Company, the new CFO started