Corporate Finance and Transformation Practice Group
As businesses evolve, management and owners often find the need to expand their focus and implement specific top-line growth strategies, market and product expansion/diversification, follow-on acquisitions and eventually, sale or recapitalization of the business. These business transformation points involve laying the groundwork for the business to scale operationally while at the same time identifying sources for capital—debt and/or equity. The increased number and complexity of corporate finance alternatives mandates thoughtful decisions, given their significant impact on the future growth and success of the business.
We provide comprehensive advisory solutions that include:
- Enterprise strategic planning: operational and financial
- Capital raise: preparation of related memorandums, introductions to most suitable capital sources, and end-to-end comprehensive deal support and execution
- Go-to-market strategy (product positioning, branding, product segmentation)
- Sales/Marketing strategies and organizational implementation (technology, ERP selection and implementation, sales process optimization, product pricing)
- Optimization of inventory levels and cash management cycles
- Capital budgeting, balance sheet management, performance incentive plans
- Follow-on mergers, acquisitions, and integrations
- Comprehensive hands-on design, preparation and execution of liquidity events
Practice Leader- Joe Alouf, CPA
Joe Alouf is an inspiring executive with distinctive experience and capabilities in business model scaling, reinvention, and operational and financial optimization. With over three decades in a multitude of industries, Joe has developed a demonstrable track record helping companies in transition maximize their operation and financial value potential, complemented by hands-on expertise and contacts related to debt and equity capital raising. His background offers a hand-on partner with deep working knowledge of designing and managing finance, accounting, legal, HR, and IT departments. Joe has worked at startups as well as established global companies and brings proven capabilities of a seasoned operating executive with deep financial acumen to help companies achieve their potential, solve the most difficult business problems, identify successfully integrate M&A opportunities, and design and execute liquidity events.
Who We Serve
As Companies grow they find their balance sheets also grow in complexity. Often, high growth companies have small finance departments that do not have the requisite experience creating appropriate working capital and capital investment plans. Our partners can assist with the implementation of balance sheet management processes and the related monitoring of results.
Operators have a need to understand how their production schedules and investment decision-making relate to the overall business plans and financial goals of the company. Frequently, operations management has limited access to finance personnel for assistance in their efforts to manage their balance sheets. Our partners can provide the necessary support to operators in their efforts and can design meaningful financial reporting tools for their use in predicting and monitoring results.
- Assist in development of strategic alternatives for debt and equity capital financing and assist with due diligence. Perform financial modeling and sensitivity analyses of alternatives. Evaluate adequacy of capital structure to meet business plans. Perform associated risk analyses.
- Assist in development of working capital and balance sheet budgets and underlying methodologies.
- Assist in development of material requirements planning forecasts. Coordinate the consolidation and comparison of financial plans to production and inventory plans.
- Identify slow and obsolete inventory and assist with liquidation plans.
- Develop management reporting tools related to receivables and evaluate receivable quality, credit granting policies and receivable concentration. We can assist with ways to mitigate the risk with concentration of credit issues.
- Fill interim financial management needs where management turnover could cause a risk of deterioration in key balance sheet items. Provide CFO assistance with direct hire of permanent financial management personnel.
- Develop processes and reporting surrounding capital expenditure planning including return on investment modeling and reporting.
Successful Client Engagements
- We have staffed on an interim basis, key receivables management and collection positions for Companies ranging in size from $10 million to $550 million in annual sales. We have been providing staffing services for nearly 30 years and unlike other search firms, our CFO partners are involved in candidate screening; applying a CFO’s understanding of client needs.
- We were brought in to perform triage for an aging of a $20 million receivable portfolio and supplemented management to quickly bringing the balance back in line. We then performed a follow-on project to implement department goals and evaluation measures in order to have nearly real-time monitoring of the quality of receivables.
- We have mentored numerous Controllers / CFOs in evaluating balance sheet risks and opportunities to assure adequacy of controls over material account balances. For two companies with identified significant and material control deficiencies we developed corrective action plans and timelines to achieve compliance. In each instance, the deficiencies were eliminated within the time estimated at project acceptance.
- We have assisted in review of other current assets and liabilities with an eye towards monetizing assets and extending credit granted. By way of example, we look at such areas as refunds of prior deposits, financing of insurance premiums and the timing of estimated tax payments.
- We have assisted with debt and equity financing between $5 million and $200 million in net proceeds. We participate in the development of the overall strategy, financial modeling and forecasting, preparing for due diligence and pressure testing of financial covenants, Our experience includes both public and private transactions and we have been involved in multiple PIPE transactions.
- We have assisted with the implementation or refinement of inventory management controls reporting for Companies ranging in size from $20 million to $650 million. These assignments have included tools to measure inventory productivity down to the sku level. We have managed systems that project future inventory balances using days of inventory on hand and planned sales. In one instance we participated in what turned out to be a nearly 20% reduction in inventory despite rising sales.
- We have evaluated quality of inventory with a focus on excess and obsolete balances for Companies ranging in size from $20 million to $6 billion in annual sales. We have assisted in numerous inventory reduction programs involving the liquidation of excess inventories of up to $6 million.
- We have implemented numerous capital investment evaluation models in areas such as advertising and marketing, information technologies and supply chain management.
- We have performed investment portfolio reviews of selected assets for Companies ranging in size from $30 million to $6 billion in sales with a quantification of achieved asset returns and proposed corrective action.