CFOs.co

Why Choose CFOs.co?

Round Rock cfo and controller

A business that's in crisis, trying to grow, or just starting out desperately needs financial guidance to keep moving forward. The oversight of a qualified CFO and business consultant is critical to helping you gain control of your finances and CFOs.co has the experience you need. We can identify and implement operational adjustments, find ways to curb expenses, and offer the practical advice that contributes to the profitability of a business.

CFOs.co will deliver a customized formula that will clearly show how your business can live up to its full potential. We're confident our strategies will result in success because we've done it for so many other businesses just like yours.

We encourage you to learn more by reading the case studies below, then call us at 512-253-1900 today to schedule a free initial consultation. There's no obligation so there's nothing to lose.

Business Solution Case Studies

Case study 1 – Poor management

Problem: A 30-year-old nonprofit was technically insolvent due to poor management and associated systems. It had failed to produce audited financial statements as well as maintain compliance requirements according to the Secretary of State. Its viability and sustainability were in question.

Solution: Create a comprehensive solution which included a nonprofit specific business service information system, controls, and financial reporting system. An operational assessment was conducted and ongoing strategy implemented.

Results: The agency improved from a position of financial and operational weakness to a position of financial and operational strength. The agency's negative working capital was transformed into sufficient working capital with cash reserves in the 90 to 180 day range. Overall net assets increased to approximately $6 million from insolvency.

 

Case study 2 – Startup troubles

Problem: A senior executive with significant staffing industry experience had difficulty obtaining funding and launching a startup.

Solution: Create a business plan for use in operations and financing needs. Execute on initial business plan and subsequent operations and strategic plans including exit strategy.

Results: Secured initial startup funding and multiple rounds of subsequent funding and mezzanine financing. Revenues grew according to plans to approximately $35 million run rate in first five years. Start up financing replaced with lines of credit and asset based lending of $2.5 million annually. Offering memorandum produced in third year securing offers of 12 -16X earnings and 2-4X revenues.

 

Case study 3 – Groupthink

Problem: A developer approached a health and human service organization with a joint venture purchase of an $8.5 million building with substantial risk in nominal upside potential in a deal that included call/put options to terminate the relationship upon certain events.

Solution: Provide a detailed analysis of JV relationship including valuation of the assets and potential cash flows accruing to the partners. Provided solutions that mitigated substantial risk and maximized returns on investments. Properly identified net present value of the JV in $16 million range and advised clients to bargain for majority interest given deal structure.

Results: The organization opted, in a unanimous vote, to proceed with a joint venture as presented by the developer commenting that there would be limited risks. Unfortunately, the organization had expended approximately $200 thousand in personnel and related costs before the developer exercised the option to terminate the relationship. The organization had not negotiated the majority interest, nor any other fees as suggested. Instead they were paid a $50,000 option fee which didn't remotely cover their costs. The developer sold the property approximately 2 years later for $16 million and reaped almost $8 million net windfall. The organization’s failure to properly understand the deal structure and risks not only cost them $150 thousand net of the option, but also their $4 million in profits from the subsequent sale.