A Washington State based home builder ($75 million revenues) became a victim of the 2008 real estate crash. Falling land values and sales prices upset its financial business models and ‘froze’ the company in inaction.
A NextLevel executive, as CFO, assisted the Board and president in revamping the company and getting it back to business. He evaluated asset inventory and wrote it to market values, reviewed and changed operations and fixed assets to maximize efficiency and cash flow, and installed a dynamic and robust system as the builder’s new ERP. The NextLevel executive also introduced all-new financial analysis models to feature marginal contribution and profitability, enabling the company management to financially understand and explain to owners the rationale for re-engaging the business. In addition, he consolidated and renegotiated credit lines to reduce cost.
- The company increased building activity six-fold in two years.
- The company returned to profitability and positive cash flow for the first time in six years, and began evaluation for expansion to a new market.