Financial Management & Capital Sourcing

The most frequent refrain we hear from clients and stakeholders is “It would be ok if we just had access to more money.” Behind that wistful lament, the two most frequent complaints we hear are “I can’t get good/timely/accurate reporting” and “No matter what I do, the numbers don’t come in where expected.” If you are looking for money, your reporting and your accuracy need to be good. And even if you don’t need more money, you can’t run a business, invest money, or sleep at night when you are flying blind. We can help.

Case Study: NY Distributor: Assessment, Financial Improvement and Capital Sourcing

Situation:
The $100M company ran out of cash after poor integration of a large acquisition combined with mismanagement of commodity hedging. Approaching its slow season, the long term lender forced an exit. A strategic partner offered to provide bridge funding subject to a viability assessment that could demonstrate the company could succeed, and the existence of a measurable plan to return to profitability.

Action:
Chrysalis Management conducted a viability assessment and plan which included a full financial and operational review, revamped hedging strategy, service model, contract obligations, and tightened financial metrics for improved performance. We structured and closed year 1 bridge financing, identified and closed replacement financing in year 2, provided financial oversight, first through the liquidity crisis as an advisor then, as organization stabilized, as Interim CFO. Now, provide support for lender requirements and special projects including, recently, the due diligence and negotiation for a large acquisition.

Results:
The assessment and resulting plan showed that the company was viable and provided a path forward. Chrysalis secured bridge financing of $20M+, and a replacement round of $23.5M one year later. EBITDA went from breakeven to $3M in two years and to $5M over the next two years.

Post Engagement:
Initially hired as advisor for assessment; then retained as advisor for implementation; then as Interim CFO; still retained as advisor for special projects i.e. last fall oversaw diligence for a recent large acquisition

Detailed Service Offerings

  • Setup accounting systems
  • Interim management until you find/need a controller or CFO
  • Create investor-worthy financial projections
  • Variance reporting as you progress forward
  • Helping to find angel or VC funding
  • Setup/improve financial systems to keep pace with your growth
  • Determine key metrics you should be watching
  • Set up reporting systems
  • Cash management to ensure you don’t run out of cash as you grow
  • Acquisition or investment due diligence
  • Sourcing capital (debt or equity) for organic or acquisition growth
  • Interim controller or CFO until things stabilize
  • Create accurate, credible financial projections that are reliable
  • Daily/weekly/monthly reporting to ensure things stay on track
  • Cash management, especially if in a liquidity crisis
  • Creditor negotiations when payments are in jeopardy
  • Monetizing non-core assets
  • Bridge or replacement financing (typically debt, sometimes equity)
  • Estate planning support (we provide info your planner needs
  • Valuation and projections to support what is feasible
  • Businss continuity plans
  • Sale preparation, opportunity memorandum, projections

Contact Us

Boston: 393 Totten Pond Road, Suite 202, Waltham, MA 02451

New York: 135 Crossways Park Drive , Suite 402,Woodbury, NY, 11797

888.445.1062

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