Case Studies - Part-time CFO

$10 Million Business Receives a $40 Million Order

A $10M family owned manufacturing company receives a $40M order.

Challenges

  • Current $1M line of credit about to expire, no financing in place.
  • The logistics involve producing 8M components in 8 week period and shipping them to 1,800 retail locations.

Solution

  • Part-time LauberCFO, through his extensive experience, completed analysis and requirements for scope and timing of financing.
  • In addition, the Part-time LauberCFO guided the management team to develop a strategic financing plan, which included identification and negotiation of key terms and conditions with customers and suppliers.
  • Ensured alignment of key production milestones and financing requirements.
  • Secured bids from incumbent bank and three additional lenders due to size and complexity of credit.
  • A $24M package of traditional bank financing, progress payments from customer and extended terms from suppliers was developed.
  • Part-time LauberCFO stayed very involved with monitoring and managing to key production deliverables and financial elements of this contract.
  • Company’s success allowed it to be considered for a similar contract from a new customer.

What this meant to company

  • Secured very large new contract.
  • Open new line of business with significant long term potential.
  • Successful completion of the order, significantly increased future revenue potential due to expected follow-on orders and new customer potentials.
  • Increased level of repeat business and customer retention.
  • Increased enterprise value.

The value of a Part-time LauberCFO

  • Extensive domain expertise in senior financial position.
  • Entrusted adviser to owner/CEO on many matters.
  • Looks at business through perspective of maximizing competitiveness and long term enterprise value.
  • Extended tenure with clients helps develop stronger financial and business acumen across client’s leadership team.