Handling Growth

The Turning Point CFO advisory working with the executive mentorship and capital advisory teams helped this company get back to bank-ability.

“Too much growth sounds like a good problem to have.  But success can bring its own challenges, some of them serious. Turning Point can help.”

Overview:

When this mid-sized media publisher was introduced to Turning Point they were at a crossroads. Having grown quickly, many of the processes and procedures the client had been using needed to be upgraded and re-thought. The company was suffering from declining profitability and cash flow as a result of growth.

Actions:

Turning Point was able to utilize its significant experience and resources to assist with this process. Turning Point provided management with a blueprint to manage the company’s growth, while supplying the resources necessary for the client to test and review new analyses and procedures, including new metrics for budgeting and daily operations.

Turning Point was also able to introduce the client to new banking relationships and assist in acquiring non-traditional interim financing that increased the client’s financial flexibility during its growth stage. Once stabilized, Turning Point was able to facilitate traditional financing for the client.

Turning Point advised on financial and operational reporting tools to improve key metrics for the clients’ business, including weekly projected cash flow to help predict capital requirements.

Results:

Turning Point was also able to assist with Executive mentorship, helping many of the clients’ key employees grow into new roles as the day-to-day operations of clients grew substantially. This included the creation of flash financials allowing management a quick and accurate review of financial performance within 5 business days of the close of the month. With timely and accurate information, management was better able to direct the growth of the business.

Key Takeaways

Turning Point was able to assist the client with the acquisition of a competitor that increased the client’s size by 17%. Turning Point assisted with the financial modeling, due diligence, and financing components of the acquisition, and helped the client close the transaction quickly and efficiently.