CFO & Strategic Financial Solutions (Public & Private)
Our firm is comprised of seasoned professionals with backgrounds in multiple different industries, business sizes, and transactions. Our finance leaders span the range of public CFOs to VPs of Finance for rapidly growing startups.
- Financial Forecasting, Budget Preparation, Implementation and Management
- Cash Flow Management and Projections
- KPI Design and Implementation
- Managerial Reporting Design and Implementation
- Board Meeting Management and Board Decks and Reports
- Shareholder/Investor Meeting Preparation and Support
- Audit Committee Interface
Financial Forecasting, Budget Preparation, Implementation and Management
Accurate financial modeling and forecasting is an essential component to any organization to help management quantify their plans, understand their financial performance, make better decisions and present their ambitions to outside parties. Critical to the financial model are the underlying assumptions, expectations, and drivers to the business, which allow the financial model to take shape. We are highly skilled at constructing financial models for our clients so that it can be an effective tool for not only outside parties but also for management on an ongoing basis. We know that business owners are faced with difficult decisions every day and we can help simplify decision-making processes.
An effective budget preparation process includes trade-offs and prioritization of company initiatives to ensure that the budget fits your business policies and plans. The most cost-effective variants must be selected with a view toward increasing operational efficiency and maintaining the necessary financial constraints. Accordingly, the budget formulation process must involve setting up the fiscal targets and the level of expenditures compatible with these targets, formulating expense policies, allocating resources in conformity with both policies and fiscal targets and addressing operational efficiency and performance issues.
A budget is management’s hypothesis of how the company will perform financially given the most likely set of circumstances. We can validate budgets developed with the best guess from management using statistical methods and sensitivity analysis. A budget can be converted into a set of financial forecasts, which are a formal presentation of the budget distributed to potential lenders or investors. Further analysis through costing, proforma analysis and financial projections can help management understand costs and present the expected financial results of their business plans to outside parties. As financial statements are produced, they can be compared to the budget to help you understand the nature of its costs and identify inefficiencies – it is a road map that helps a company stay on track.
Cash Flow Management and Projections
Having consistent and accurate visibility of cash flow is critical to any business. A cash crisis can be devastating and can cripple your business. With our assistance, we can help you manage and project your cash flow properly. This allows you to know:
When, where, and how your cash needs will occur
What the best sources are for meeting your additional cash needs
How to be prepared to meet these needs when they occur, by keeping good relationships with bankers and other creditors
We start by developing a cash flow projection. This will help develop both short-term (weekly/monthly) cash flow projections to help manage daily cash and long-term (annual/3-5 year) cash flow projections. This helps to develop the necessary capital strategy to meet your business needs. We also prepare historical cash flow statements to help you gain an understanding of past performance.
By creating an accurate cash flow projection, we can help you strengthen your ability to obtain an appropriate line of credit, enhance your cash collection acceleration techniques, establish effective collection and payment policies and help you obtain the maximum rate of return on your idle cash.
KPI Design and Implementation
Most leaders have an intuitive understanding of what drives their business, but no practical way to measure those drivers. Our team has deep metrics and data backgrounds and is very experienced in synthesizing disparate data streams into Key Performance Indicators. We not only design the KPIs, but we also implement processes to ensure proper measurement and data controls.
Managerial Reporting Design and Implementation
Sometimes the standard GAAP reporting package doesn’t give management the insight they need into running their company. We understand the importance of insightful and concise reporting and have designed and implemented numerous reporting packages tailored to individual business needs. Whether it is understanding your full collection process to your sales funnel, we can help you.
Board Meeting Management and Board Decks and Reports
Board reporting requirements vary significantly by company but all have the same need to provide deep insight into the most pressing issues the company faces in a limited amount of time. Our finance leaders have been the right hand of many executives in helping craft the message as well as delivering it.
Shareholder/Investor Meeting Preparation and Support
Shareholders and Investors have varied needs and requirements for reporting and communication. Our finance leaders have deep experience in addressing the varied reporting needs investors have. Whether it is running or supporting a quarterly investor meeting or providing a PE/VC/Family Office/Bank the individualized reports they require, our team has your back.
Audit Committee Interface
Dealing with an Audit Committee can be very daunting, especially if an executive does not have an accounting background. We’ve guided many executives through an audit committee and many of our finance leaders were former auditors and/or members of audit committees themselves.
Controllership & Accounting Solutions (Public & Private)
Our firm is comprised of seasoned professionals with backgrounds in industry and public accounting who are able to quickly get up to speed and provide quality deliverables. We strive to offer a customized approach to every client’s needs that enable us to simplify complex situations for clients who are seeking increased bandwidth during busy times, need timely year-end audits, need to save money on auditor fees, are lacking in-house experience in technical accounting matters or just need help processing transactions.
- Controller Services
- Day-to-Day Management of Accounting Team, Processes and Monthly Close Management
- Audit Preparation and Interface
- Building and Maintaining Sarbanes-Oxley Controls
- Design and Implementation of Accounting Policies, Procedures and Controls
- Capitalization Table Maintenance
- Accounting Services
- Accounting Transaction Processing
- General Bookkeeping, Monthly Closing Support and Account Reconciliations
Day-to-Day Management of Accounting Team, Processes and Monthly Close Management
Our team is equipped to assist you in all spectrums of the accounting process. It is not uncommon for many companies to lack the in-house experience to address their accounting and financial reporting needs. Whether on an ongoing basis or during short, focused periods of time during month-end or year-end closes, we are prepared to provide a high quality, cost-effective outsourcing solution.
Audit Preparation and Interface
One of the keys to a successful audit is performing the proper audit preparation. Late reports, penalties or noncompliance with debt covenants and SEC regulations and internal friction with audit committees are all organizational issues that stem from lack of proper preparation. While the actual audit may be the responsibility of an outside audit firm, preparation is the company’s responsibility. With our experienced team behind you, we can get you audit-ready in a timely and cost-efficient manner. We are prepared to:
Identify, research and analyze technical accounting issues
Prepare draft financial reports and accompanying footnote disclosures
Organize electronic files containing all financial and audit schedules
Reconcile bank accounts, prepaid expenses, fixed assets, accrued expenses
Prepare audit schedules
Assist with accounting for equity transactions
Analyze and record stock-based compensation
Review and report on revenue recognition
Analyze tax provisions and reserves
Building and Maintaining Sarbanes-Oxley Controls
Sarbanes-Oxley (SOX) controls and requirements are in-depth and can surprise newly public companies with their complexity. We get you up and running as well as maintain your SOX controls afterward.
Design and Implementation of Accounting Policies, Procedures and Controls
Controls are the often-forgotten part of the Controller title. We watch over your business to ensure that you keep the hard-earned money you earn and ensure you have the requisite accounting policies and procedures to be GAAP compliant.
Capitalization Table Maintenance
Capitalization tables usually start in Excel, or sometimes even on a piece of paper. As your business grows, your investor base diversifies and you start granting equity to employees, your cap table becomes more complex. We have brought order to the chaos of many cap tables and set up processes for the required investor reporting.
Accounting Transaction Processing
The foundation for accurate and timely financial reporting starts with effective and efficient transaction processing. This is essentially true of all accounting and financial management efforts, whether performed in-house or outsourced.
We provide efficient transaction processing solutions to our clients including:
Cash Receipt Processing
- Bank accounts
- Merchant accounts
- Daily cash receipts
- Merchant account processing
- Sales orders
- Customer invoices
- Customer statements
- Payment applications
- Credit memo and refunds
- Customer set-up and maintenance
- Inter-company accounting
- Vendor bills processing
- Credit and debit card processing
- Vendor payments
- Purchase orders processing
- Expense report processing
- Vendor set-up and maintenance
- Inter-company accounting
Cost Accounting & Inventory
- Cost accounting
- Inventory transaction processing
- Inventory movement processing
- Inventory valuation and monitoring
Fixed Assets, Prepayments & Accruals
- Fixed asset accounting
- Prepayments and accruals
- Journal entries
General Bookkeeping, Monthly Closing Support and Account Reconciliations
Whether we are directly involved in transaction processing or you have the staff already in place, we are equipped to assume a supervisory role and be responsible for directing other accountants or clerks, and reviewing the bookkeeping including:
- Amortization of prepaid charges such as insurance premiums.
- Accruals of expenses incurred but not yet billed, such as materials and supplies received, utilities used, and employee benefits, such as vacations.
- Journal entries to record depreciation on fixed assets, such as the company’s plant and equipment, entries to record the cost of sales based on purchases, manufactured products, and changes in inventory balances, and entries to record accrued or deferred income taxes, based on net taxable income or loss.
- Review of accounts receivable and accounts payable vouchers.
- Preparation and control over the monthly accounting closing schedules.
- Review of the purchases and sales journal and the cash receipts and disbursements journal.
- Supervision of the payroll process and review of the payroll register.
- Calculation and recording of depreciation, amortization, and depletion.
- Determination of the cost of goods sold and inventory balances.
- Review of the trial balance.
- Account analyses and reconciliations.
- Preparation of information required for internal management reports and outside reporting.
- Budget control and variance analysis.
- Compilation of information and preparation of schedules required by internal and independent auditors.
Financial Operations (FinOps) Solutions
- Process Improvement
- Profitability Enhancement
- Planning & Implementation of Accounting Policies & Procedures
Business process improvement is a systematic approach to help an organization optimize its underlying processes to achieve more efficient results. Effective process improvement is part of organizational development in which a series of actions are taken to identify, analyze and improve existing business processes within an organization to meet new goals and objectives such as:
- Revenue enhancement
- Increasing profits and performance
- Reducing costs
Process improvement is also a method to introduce process changes to improve the quality of a product or service, to better match customer and consumer needs. Our team has experience in operating businesses and can:
- Identify what’s important to the customer and the business.
- Identify associated critical business processes.
- Prioritize key processes.
- Help you to determine how a given process actually works.
- Analyze the process for waste, inefficiencies, wait times, etc.
- Redesign and re-engineer the process to what you would like it to be.
- Implement the identified process improvements.
- Monitor re-designed process performance to ensure success.
Our accounting and finance expertise enables us to assist companies in maintaining or enhancing the profitability components that come from a combination of financial and managerial disciplines, which contribute to the continuous growth of sales and earnings. Our solutions include:
- Profitability analysis – A technique for understanding the impact of three key contributors to a company’s sales base: customers, product, and service.
- Cost analysis – To be an effective management tool, cost system management must guide you in making good business decisions on what to offer and what to charge for it.
- Benchmarking and performance analysis – To effectively interpret operating results, management must establish realistic financial benchmarks. Only then can they determine whether they are operating above or below expectations and take appropriate corrective action.
- Supplier analysis and negotiation – As customers continue to squeeze margin out of company sales, companies, in turn, need to leverage their position with suppliers.
- Implementation and execution – Once profitability by segment is understood, procedures may be changed to maximize the value-added revenue from pricing policy, production scheduling, even organizational structure.
Planning & Implementation of Accounting Policies & Procedures
We assist our clients by designing and implementing the high-level policies and procedures to ensure that financial activity is recorded accurately and consistently across the organization. This includes the following and helps answer the question of “who does what?” & “how to do it?” by formulating standard and reliable accounting processes.
- Identify the required resources needed for the department.
- Establish authorities and duties in the department for maximizing efficiency and effectiveness.
- Achieve segregation of duties and internal controls in the department.
- Set comprehensive policies and procedures to streamline accounting operations.
- Acquire a reference explaining essential accounting assumptions and their application.
Capital & M&A Advisory
Strategic alternatives are out of the scope of your normal business activity. So, whether you are considering new lines of business, acquisitions, a sale, merger or a consolidation of your business, we can bring objective financial and operational advice to these critical decisions. Furthermore, we provide the management team with our expertise in communicating and navigating the capital markets to best benefit their needs. When we consider taking a client engagement, we make certain to understand our clients’ current valuation as a standalone and relevant to their industry peers. At that point, we can engage our investor networks to best position the client in the capital markets to maximize shareholder value.
- Planning and Implementing Due Diligence Engagements
- M&A Integration and Consolidation Support
- Deal Structuring and Financial Modeling
- Capitalization Planning and Evaluation of Financial Alternatives
- Data Room Management and Fundraise Process Support/Management
- Investor Road Show Support
Planning and Implementing Due Diligence Engagements
In order to drive corporate growth, companies need to seek new markets, channels, products, and operations that may be outside of their core competencies. M&A has become riskier than ever with the increasing pace of technology changes and industry disruption. The due diligence process was historically designed to focus on identifying risk, and either mitigating, negotiating, or abandoning a potential transaction. However, a significant shift needs to occur during the due diligence process, from a primary focus on assessing risk, to the addition of early and meaningful identification of post-deal value creation opportunities, including the early development of an integration plan. Companies are getting integration teams involved earlier in the deal process. We strive to assess and plan for these factors so that our clients become better at realizing and accelerating value realization after a deal is closed.
M&A Integration and Consolidation Support
We believe that critical information for integration planning comes from due diligence findings and recommendations. A smooth transition of knowledge from the due diligence team to the integration team can maintain the deal’s momentum and increase deal value. We are focused on leveraging valuable time to jumpstart integration planning activities pre-close in order to engage the right resources to lead the integration, leverage due diligence findings, formulate a vision, and deploy a structure to govern the process.
Deal Structuring and Financial Modeling
We focus on the main tools and analyses that M&A investment bankers and acquirers utilize. Our goal is to identify and address common structural issues, crucial merger consequence analysis and structures and methodologies. It’s essential to translate fundamentals into different modeling techniques to determine common structural issues in a transaction (stock vs. asset purchase), merger consequence analysis including accretion / dilution and financial implications of a deal, building a fully functional accretion / dilution model that accounts for different transaction structures and sensitizing financial projections and the financial impact on a transaction.
Capitalization Planning and Evaluation of Financial Alternatives
There are a number of steps required as part of any major capitalization plan to attract investors including:
- Converting a company’s basic revenue and expense assumptions into pro forma financial projections that conform to Generally Accepted Accounting Principles (GAAP) standards;
- Determining the optimal capitalization mix of equity, debt, leasing or any other financing methods to lower the ultimate cost of capital;
- Assessing the company’s minimum or maximum capitalization needs, thereby reducing the need to give up too much equity too soon and increasing the probability of capital attainment;
- Evaluating what affects a capitalization plan has on previously issued securities;
- Analyzing Internal Rates of Return (IRR) on a series of deal structure scenarios;
- Building an interactive financial model as a management planning tool to make qualified decisions for future capitalization planning.
We can guide you through each of these steps so that you can communicate and deliver the appropriate information for investors.
Data Room Management and Fundraise Process Support/Management
Determining the appropriate type of financing for a company is not only critical to the planning process but also highly dependent on the availability of capital whether in the form of equity, debt or a combination of both. We are consistently communicating with financing sources as part of our business practice and can advise and guide you toward the most viable avenues for funding. However, once you get the attention from any financing source, you need to be prepared to provide the data for due diligence and to continually support the needs for information to close the financing. We work alongside you to help with that heavy-lifting and to manage the stress typically associated with this process.
Investor Road Show Support
Every company should have a short-term and long-term capital plan and should be analyzing their future financing options – ideally at times when they don’t need it so that they are prepared for any unexpected circumstances. We can help you analyze the financial metrics of your business and develop financial models so that you can greatly enhance your ability to see into the future capital needs of your company. In addition, we can speak to these financial metrics by participating in finance and investor meetings to support the capital raising process from start to finish.
SEC Reporting & Compliance
- Planning and Management of SEC Reporting Timelines
- Preparation & Filing of 10-Ks, 10-Qs, Registration Statements, Proxy Statements and Other SEC Filings
- SEC Query and Communication Interface
- Consultation on Compliance with Sarbanes-Oxley
- Shareholder Meeting Preparation
Planning and Management of SEC Reporting Timelines
In the environment of SEC reporting, it’s critical to have proper planning for every engagement to “measure twice and cut once.” Whether it be for Exchange Act reporting for 10-Ks or 10-Qs where we plan on what is required on an annual basis or for a company’s first 10-K and we have to understand and outline all technical accounting issues first before resources and time are spent on pre-audit or drafting, planning and assessment is critical so that all parties involved know what to expect.
Preparation & Filing of 10-Ks, 10-Qs, Registration Statements, Proxy Statements and Other SEC Filings
We have over 25 years of combined experience in the SEC filing requirements needed to stay compliant as a reporting company, whether you are traded on the NASDAQ, NYSE, OTCQB/QX or looking to uplist from the OTC Pink markets. The complexity and timeliness of the requirements under the Securities Act of 1934, as well as Sarbanes-Oxley, make it increasingly difficult for smaller companies to keep up with the SEC required paperwork. We are able to assist, or completely manage the editing and developing of necessary content required for these SEC filings and can affordably and efficiently perform the work so that you can timely file your 10-K, 10-Q, 8-K, S-1, and proxy statements.
SEC Query and Communication Interface
During a public company’s lifecycle, there will be comments and inquiries from the SEC staff as filings get periodically reviewed. This is normal, and we are prepared with the knowledge of your filings and technical accounting issues to help respond to any inquiries.
Consultation on Compliance with Sarbanes-Oxley
Our staff is skilled in Sarbanes-Oxley compliance and can assess and assist management in implementing the necessary steps to become compliant under SOX. In addition, we are equipped to plan, prepare and coordinate the filings and venues necessary to assist you in your regular or special shareholder meetings.
Shareholder Meeting Preparation
There are many components that need to be coordinated and come together for a successful shareholder meeting. From the drafting and filing of the proxy statement, to mailing, analyzing voting requirements, shareholder outreach and meeting logistics, it is typically a very stressful process. We’ve been there and done it, and we’re always prepared to adapt to any issues as no process is the same for any company.
Public Listing Solutions
- Identifying & Evaluating APO Opportunities (Reverse Mergers, Shells and Reg A+)
- Initial Public Offering Planning and Filing
- SEC Self-Registration
- FINRA Regulatory Filings
- OTC to Fully-Reporting Transitioning
Identifying & Evaluating APO Opportunities (Reverse Mergers, Shells and Reg A+)
If you are looking to take your company public, there are viable Alternative Public Offering (APO) opportunities that can be explored by way of reverse-mergers with existing registered or non-registered “shells”. There are also numerous pitfalls associated with APOs. In addition, the landscape of intermediaries and available public shells is diverse and complex. We can help you determine the most viable route toward the APO market and make introductions to help you decide on what avenues to choose. We can map out this process for you to find the best pathway for your company while you are able to dedicate your valuable time to other business activities.
Congress passed the 2012 Jumpstart Our Business Startups Act (the JOBS Act) on a bipartisan basis that was intended, in part, to help small entrepreneurial startups raise capital. Previously, Regulation A had such a low fundraising limit and high compliance cost that it was almost never used. Companies could only raise up to $5 million in capital, and they had to file the offering in every state in which they were selling (the so-called ‘blue sky laws’). The new Regulation A+ raises that limit to $20 million for the existing Tier 1 and creates a new Tier 2, in which companies can raise up to $50 million, $15 million of which can be offered by current shareholders. In addition, Tier 2 will not require companies to be reviewed by every state, significantly reducing the cost of compliance. The new Reg A+ essentially will create a new kind of IPO as a way for companies to go public with less initial and ongoing expense compared to a traditional IPO. Furthermore, now with new developments to Reg A+ in January 2019, existing public companies are now included.
Initial Public Offering Planning and Filing
The planning for a traditional IPO, the audit preparation, the preparation and filing of a registration statement, as well as the continuing reporting requirements under the Securities Act of 1934 are both intense and time-consuming and involves the work of many parties. We have the expertise to work with you every step of the way and to seamlessly interact with your SEC counsel and auditors so that you can focus on your daily operations.
Unlike a reverse-merger with an existing public shell, self-registering with the SEC (filing an S-1) can be highly appealing as a custom-tailored approach to going public. However, it involves a significant degree of planning, diligence and time and is just the first major step toward becoming a publicly-traded company. Our expertise with SEC filings is very valuable to this process and we assume an integral role in the construction of a registration statement while coordinating the process with SEC counsel and auditors to make the process as cost-effective and efficient as possible.
FINRA Regulatory Filings
Maintaining relationships with key market-makers and staying actively involved with the filing of FINRA-related filings (i.e. Form 211) is a critical component to the electronic trading side of going public. Companies need a firm to work alongside them for these functions; our expertise and connections enable us to do that. This is a highly regulated and difficult process to navigate. We have relationships with the market-makers that can sponsor these filings and that can make a market in company securities.
OTC to Fully-Reporting Transitioning
We encounter many small companies whose stocks trade at a relatively low price and market capitalization. These stocks are typically known as microcap or penny stocks (by definition, microcap stocks have a market capitalization under $500 million). Many of these companies trade over-the-counter (OTC) and are quoted on the OTCQB, OTCQX, and OTC Pink, formerly known as the “Pink Sheets.”
To many, companies that trade on such exchanges are typically categorized as “riskier” investments. This is due to the lack of public information on these companies, as well as the fact that there are no minimum quantitative listing standards for these exchanges. Many institutional investors have mandates that prevent them from investing in companies that trade on OTC exchanges, and retail investors are usually asked to sign a waiver from their broker/dealer stating they understand the risks associated with OTC exchange-traded stocks. Even online brokerages have restrictions when it comes to OTC stocks.
We can outline the criteria a company needs to uplist and implement the steps necessary once a company is ready to uplist to the NASDAQ and NYSE MKT (formerly known as the AMEX). These two exchanges are typically the next step for a company uplisting from one of the OTC exchanges. Companies must adhere to additional requirements, such as corporate governance and exchange listing fees, in order to uplist to a higher exchange. If the management team is successfully executing on a company’s growth strategy, meets the requirements to uplist with these respective exchanges, an uplisting not only benefits the company but also benefits shareholders.