Client Examples - Professional Services
A publically traded, health services company with $25 million in revenue.
Service Provided: CFO ServicesSituation
The Company's director of finance had left, the business was reporting a loss and they were not compliant with SEC filings or bank covenants.
Our Role
It was our responsibility to restructure their balance sheet (debt), close the books (which had not been done for months), implement internal controls and to work with senior management in developing a strategic growth plan.
Result
GFO completed the necessary SEC filings and implemented controls that ensured said filing on a quarterly basis. We also brought the company into compliance with their bank covenants. GFO closed the books and reconciled the general ledger accounts, resulting in a more favorable restatement of the company's profits and losses. We renegotiated the company's debt, thus improving the company's cash flow by providing more favorable payment terms. GFO also developed and implemented a plan to reduce the company's fixed assets, providing additional working capital to fund their strategic growth plan.
Private company, $10 million expense reimbursement solutions provider
Service Provided: Accounting process reviewSituation
The company was in the process of relocating their headquarters from Pennsylvania to Minnesota. Since they were not moving their accounting personnel they required a complete analysis and documentation of all accounting functions.
Our Role
GFO was engaged to conduct a review of the client's accounting operations and document all processes and procedures.
Result
Over a three month period GFO evaluated the client's accounting operations by conducting interviews with the accounting staff and reviewing their processes and procedures. Based upon our recommendations the client was able to reduce headcount and streamline their operations by consolidating some of the accounting functions. This resulting new HQ staff than was originally anticipated. GFO completed a thorough documentation of all accounting process and procedures, which helped minimize training time for the new accounting staff.
National banking institution
Service Provided: GFO was engaged by the bank to provide advice regarding credit agreements with one of their clients.Situation
The bank's client was not in compliance with bank covenants, causing the bank to have concerns about their client's viability. Their dilemma was whether to extend the forbearance agreement or to assume control of the bank's client's assets.
Our Role
GFO assessed the financial performance and viability of the bank's client by examining their books and records, including the financial statements, profit and loss statements, balance sheets, accounts receivable and accounts payable aging, price procedures, customer lists and equipment and inventory levels and evaluations. GFO provided a written report to the bank regarding the overall financial performance and viability of their client. Our report also provided an assessment of the bank client's compliance with federal, state, and local tax authorities. GFO also provided an evaluation and recommendation regarding the best manner in which to sell and/or liquidate the assets of the bank client in order to satisfy their debt to the bank.
Result
GFO determined that the bank's client had the appropriate tools and management in place to turn the business around. Based upon our assessment, the bank extended the forbearance agreement.