A tech startup grew out of its in-house, part-time finance team and, as a result, missed a cash flow forecast. Eventus stepped in to upgrade their finance talent.
This is a classic situation of a rapidly growing tech startup. They had just completed a major acquisition of a competitor and were trying to integrate the target’s operations. The company’s standard contracts were monthly subscriptions, which were billed monthly. Therefore, as long as the cash collections were under control, the net income was a decent proxy for the cash position. The target had a company’s
different business model and billed semi-annually or annually. Therefore, cash collections and forecasting began to significantly deviate from net income. After missing consecutive cash forecasts the board put pressure on the company’s management to remedy their forecasting and cash collection issues. That’s when Eventus got the call.
“When Eventus got involved, the company had missed consecutive cash forecasts and the board had put pressure on management to remedy the forecasting and cash collection issues.”
The company asked Eventus to put together an emergency cash flow forecast that they could show the board in a week. After it was executed, they were so impressed with the work of our experts, the company hired Eventus to replace their current outsourced finance team. Eventus put in place an entire finance team: a CFO, Controller, FP&A
Analyst, and Accountant. Eventus revamped the company’s entire financial operation from their month close, to their investor reporting, internal reporting, budget, forecast, cash forecasting, and cash collection process. Eventus also cleaned up their prior books and records.
After the overhaul of the finance structure at the organization, the Board of Directors and a major investor regained their confidence in the financials. As a result, an additional $8 million was invested in the company.
