Corporate Renewal Service, Interim Management

Description of Client Company:  Company provided services reimbursed under Medicare 

Situation 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.
Engaged for: Interim Management for Company in Growth Mode

Situational Appraisal:
  • 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.
Corrective Actions:
  • 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

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