CASE STUDIES
RESPONSIVENESS, TECHNICAL ACUMEN & EXECUTIVE PRESENCE
Mining Technology
THE NEED
A tech company in the mining industry needed a pro forma forecast and valuation in order to complete its next round of funding. A Big 4 firm quoted them five times our price for the basic pro forma work and they required nearly three weeks to mobilize.
HOW WE ADDED VALUE
After an initial call from the CEO on a Friday we were provided the Company's historical financial information and basic assumptions. We worked throughout the weekend to ensure the assumptions and forecasts were robust and provided our first draft deliverable on Sunday evening. We were then able to review the document with the company's board and technical advisers and provided a final deliverable by the following Friday.
RESULTS
In calls with underwriter counsel and the funding group we were able to demonstrate our technical accounting and finance acumen, noting no required follow-up and high praise for the company's ability to generate a detailed and well supported pro forma forecast. The funding was completed and capital committed on the day the Big 4 firm was to have started their work. In addition, we did the work for one-fifth of the quoted Big 4 fee.
FINANCIAL LEADERSHIP FOR START-UPS
Agri-Business
THE NEED
A well-funded startup in the U.S. agriculture industry was without a CFO and in need of a fractional CFO as it looked to close on its series A funding round.
HOW WE ADDED VALUE
Initial calls were on a Monday and we were on-site on Wednesday having agreed to provide a fractional CFO resource for approximately two days a week. We were able to get the monthly books closed and initial forecasts, valuation and data room reviewed for the four months the company had been without a finance chief. Since that time we've been leading the financial and management reporting, capital management, governance & compliance, internal controls, and talent management for the company which has grown substantially and is about to close on its first investment grade funding round.
RESULTS
We quickly mobilized and have been leading the financial and management effort ever since. The company got a seasoned Big 4 resource for a fraction of what it would have had to pay a full time equivalent and has access to an entire firm as its CFO not just a lone temporary employee.
QUALITY OF EARNINGS
Oil and Gas Industry
THE NEED
A U.S. midstream oil and gas company had doubts about an acquisition it was closing. The initial firm that performed the quality of earnings (QoE) work appeared to have completed the work quickly and hastily, and the company wanted a secondary review.
HOW WE ADDED VALUE
Given our extensive Big 4 audit experience, we started with a top-down, risk-based approach and although no red flags were noted within the revenue and receivables and other significant risk areas we noted an unusual amount had been spent on legal costs year-to-date. Upon digging further and after multiple denials for the legal expense detail from the acquisition target we noted the target had not disclosed highly material legal contingencies nor did it plan to prior to the closing date of the acquisition.
RESULTS
Our client walked away from the acquisition and we were directly credited with the decision as a result of our QoE work and attention to detail.
