Situation

A venture-backed $81 million firm expanded too rapidly, completing two acquisitions and then attempting an IPO. When the IPO failed and the services market encountered a slowdown, the company was within three months of going bankrupt.

Solution

A NextLevel executive, as CFO, assisted the owners (Board) and CEO in completely evaluating the firm’s strategy and business performance, and generated options for owners. Immediately, he closed one business acquired via acquisition. The second business was turned around in 60 days by increased focus on revenue pipeline management. In addition, he reviewed and changed operations and fixed assets to maximize efficiency and cash flow, initiated targeted staff reductions, and renegotiated real estate and other leases. Other actions included negotiating and closing a $7 million bridge financing round, preparing offering projections and materials, and conducting a road show for potential purchasers.

Results

  • The company became cash flow positive in 60 days and profitable (for the first time in two years) in 90 days.
  • A deal was sourced, negotiated and signed for the sale of the company for a mid eight-figure premium.

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