Background

• Introduced by VCs who were co-investors
• Company had achieved good sales growth but was unable to attain bottom line profitability
• Historic losses placed significant strain on cash flow to fund operations

Activities

• Contracted to provide a phase one assessment of the company to address primary business issues and provide recommendations for strategic direction
• Recommended the implementation of financial reporting protocols, a cost control plan including a reduction in force, and the commencement of an M&A process
• Provided interim management to implement plans and a divestiture manager to manage the M&A
• Provided necessary level of confidence to support a bridge financing from the existing VC group to fully fund the business model

Results

• Successfully implemented cost control program, including a reduction In force, which reduced total expenses by 25% and met all budgetary expectations.
• Achieved 32% increase in sales revenue while at the same time reducing inventory levels and outstanding accounts receivable.
• Four substantive merger and acquisitions completed involving various pieces of IP and core business