Case Studies
J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida
Read MoreThe Company was a $65 million privately held E-commerce company located in Seattle, WA.
A venture-backed start-up that had become the leading provider of gift certificates and related services to corporate clients and consumers had spent the vast majority of the proceeds from a $50 million preferred stock issuance. Compounding the problem was the fact that the IPO market, on which it had been relying for future funding, had dried up. The Board had lost confidence in the CFO and recognized that it needed to augment the CEO and Founder's skill set.
Our experts assumed the CFO role, developed a credible financial forecast, and raised $13 million in convertible debt just as the Company was running out of cash and entering its busy holiday season. We introduced financial discipline across the organization and maintained vendor, customer, and shareholder support during this very difficult period. Our team renegotiated a number of online advertising contracts, resulting in approximately $4.0 million in savings for the Company. We were also instrumental in negotiating the cancellation of contracts for specialized printing equipment, as well as telecommunications and marketing services, which, together, relieved the Company of approximately $2.0 million in liability.
The Company shifted the focus from the consumer market to the corporate market, which has experienced exceptional growth and has superior cash flow characteristics. Inventory purchasing practices have been streamlined and improved. Aggressive revenue targets were achieved, and the cost control measures sustained. The Company secured a $7.5 million line of credit facility from a commercial bank and more than $14 million of new equity, and continues to be one of the success stories in the e-commerce industry.
> Office of the CFO & Corporate Finance Support
The financial function is a critical partner in value creation in most businesses. We provide unparalleled support to the Office of the CFO to shape organizational strategy and enhance long-term business value. As CFOs and finance leadership across sectors face increasing demands, understaffing, and unprecedented challenges, we deliver guidance regarding financial planning and operations improvement, risk mitigation, and strategic business intelligence.
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Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation.
