Manufacturing - Tech
This company designs, engineers, and manufactures complete wireless electrical products. With less than three years of history, the company had grown quickly and had won several noteworthy awards.
With major investments in research and development since inception, the company had used most of its founding capital and saw a relatively short “runway” left of cash flow. We completed a financial model that clearly defined the cash flow of the business and allowed for various scenarios to be examined within the firm’s current cash flow constraints. With this information in hand, we considered accelerating the firm’s growth with outside capital and explored all viable options. Ultimately, we played a key role in establishing and implanting the strategic direction of the company based on the financial model
The company had done a relatively good job tracking income and expenses, but it had never held itself accountable to its business plan. We established a budget, and implemented budget vs. actual variance reporting every month to allow for improved cost controls. In addition, we helped the company analyze its gross margin and establish pricing parameters for sales based on volume, overhead, and profit requirements. By analyzing the margins on each product and correctly allocating the costs to develop each product, we helped the company focus on the products with the best long-term value proposition.
With clear projections in place, it was clear that the business would need to make internal changes or seek external financing. The best solutions were selected and implemented, and, as a result, the firm is now thriving.
Enter and Exit Successfully
This company operates in an interesting market in which mergers and acquisitions are common. We help the company understand its value as it entertains offers regularly.
With our help, the changes required to improve the company’s opportunity to arrive at its preferred destination have been discovered and implemented. As the company continues its rapid pace of growth, we continue to help the firm position itself to maximize its potential.