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| Private Startup Company in Telecommunications |
| Services Provided - CFO |
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Situation |
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The company had no in-house financial expertise because it had all been outsourced. Still, it had managed to land a large contract in Mexico, and similar deals were in the works both in the U.S. and Mexico. It also managed to secure $10M+ from a private investor. There were no IT systems to handle any aspects of business including inventory, accounts receivable and payable, accounting, purchasing, sales orders, and customer relationship management (CRM). |
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Challenge 1 |
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To secure growth capital and implement new accounting, finance, financial modeling, IT, and business process systems to allow the company to grow both domestically and internationally. |
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Actions |
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Created a five-year pro-forma to paint the picture of long-term revenues, costs, and profitability. |
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Brought accounting in-house and established internal controls. Designed new JV deal models. |
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Hired, trained, and managed finance and accounting staff in the U.S. and Mexico. |
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Selected KPMG as independent auditors to develop domestic and international tax strategies. |
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Researched, selected, and collaborated with an investment banking firm to market company in search of capital—identified the investor target market; conceptualized, created, and refined the investor presentation; and wrote and finalized the "deal book." |
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Impact |
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Company received $4.75M in private equity funding and landed three new contracts worth $17M in cash flow using new financial models. New finance and accounting infrastructure enhanced the ability to understand revenues, costs, profitability, and joint-venture options. |
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Challenge 2 |
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To build an IT platform and systems that allowed the company to operate domestically and internationally with limited resources, time, and money. |
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Actions |
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Identified and documented critical IT requirements. |
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Researched and selected an online ERP/CRM system capable of multinational operations. |
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Negotiated favorable pricing for system implementation, support, and ongoing service. |
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Hired, developed, and managed the project implementation team. |
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Directed the migration of existing records to the new system. |
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Conceptualized and designed the system operation training program. |
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Impact |
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New ERP/CRM system was successfully implemented in the U.S. and Mexico. Saved approximately $50K in implementation expenses versus a more standard approach. Saved an estimated $85K in annual operating costs. Significantly improved the company's ability to handle all aspects of operating a multinational business. |
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