Denver Success Stories
Organizations turn to vcfo for diverse finance, recruiting and HR solutions. Read about some of vcfo Denver’s engagements.
Mentoring Support During Corporate Global Expansion
vcfo engaged with an advertising production consultancy business to work on their broadcast and video production business. Headquartered in the U.S., this company had a strong European presence and was facing challenges with costly foreign currency transactions. At the time, most of their international client contracts were based on Euro and British Pound Sterling currency, which meant the company was charged exchange fees to convert to U.S. dollars and then convert back to foreign currency in order to pay contractors and other expenses. Additionally, the company was a closely held organization that was rapidly expanding and in need of strategic guidance with setting up foreign subsidiaries, contractor and employee classification issues, key employee incentive programs and succession planning.
After a diagnostic meeting with the company, vcfo deployed a Consulting CFO with extensive international experience. He introduced the client to a local bank offering a unique product in foreign currency accounts, enabling the company to avoid costly and repetitive exchange rate fees. The Consulting CFO also introduced the company to a global professional employment organization that provided guidance on foreign employment issues, and an international tax expert who provided guidance on setting up international subsidiaries conducive to optimal U.S. tax strategy. He researched, made recommendations and assisted top management in deciding the correct course of action for corporate global expansion.
As a result, vcfo was able to establish foreign currency accounts that are held and managed locally in the U.S., established a U.K. limited company (a subsidiary of the U.S. parent) and set general guidelines with respect to the timing of establishing future foreign entities in Canada, Mexico and China. vcfo continues to support this client with ongoing review of accounting software and dashboard reporting of regional results in the home currency.
Improving Bottom Line Through Employee Engagement
A family owned and operated company specializing in plumbing, heating, and electric services needed assistance selecting, developing and retaining top service technicians. vcfo had been providing the company with CFO services for many years, and the company requested additional human resources expertise to develop a strategy to advance productivity, reduce turnover and improve overall employee engagement, which in turn, would increase the bottom line.
A Senior Human Resources Consultant helped the company develop a quantifiable methodology for scoring technicians based on their relative contribution to the business across a multitude of different dimensions, many of which are tied directly to driving business value. The data was then used to compile quarterly development reports for Service Managers to review with the technicians to support their growth and success. Additionally, the HR consultant built a Service Manager compensation incentive program to drive further operational improvements and higher technician scores.
Ultimately, the company was able to convert this data into information to improve problem solving, make more informed business decisions, and reduce legal exposure around employee terminations through an objective score review process. The company and Senior Human Resources Consultant are now analyzing turnover data and scoring trends to design an improved retention strategy. Having seen the overall average technician score increase, the company expects to continue to see improvements in the bottom line.
Transitioning Financial Leadership
Upon the resignation of the CFO, a marketing software and professional services company quickly needed an interim resource to cross-train with the previous CFO and fill in until a full-time CFO could be hired. A Consulting Senior Controller from vcfo was hired to backfill critical areas until the permanent resource was brought on board…
…including re-vamping reporting package, reviewing month-end closings, processing new hires and terminations, overseeing bi-monthly payroll processing, training and mentoring a staff accountant, overseeing revenue accounting, calculating monthly commissions, coordinating audits and tax returns and more.
During the transition in financial leadership, the vcfo Sr. Controller ensured workflow continuity, met reporting deadlines and brought the audit to a successful conclusion. The company recently hired a new CEO, and vcfo’s Sr. Controller is working closely with her to help with the hiring, interviewing and transitioning of the new permanent CFO.
Providing a Variety of Strategic and Tactical Financial Expertise
In the Fall of 2014, the world’s leading manufacturer of microwave radiometers used for environmental and weather-related remote sensing asked vcfo to help with a variety of initiatives, including: cash flow projections, budgeting and C-level accounting and finance support.
Our Consulting CFO introduced automated cash flow projections; established inter-departmental reporting guidelines to better manage product repairs, maintenance tracking and production efficiency; and advisedd the CEO, Board of Directors and Department Heads on personnel and financial issues. He is currently developing a budget platform for establishing goals and employee performance metrics, and reviewing accounting practices and procedures for efficiency, accuracy and profitability.
Our Consulting CFO provided a better cash flow management and planning system for the client, as well as better coordination and tracking of employee goals and incentives.
Evaluating Prospective Start-up Opportunity for Entrepreneur
Our client, a physician involved with various start-up companies, was evaluating a start-up opportunity and needed assistance analyzinga new business and cash flow projections. He was looking for assistance from a CFO to develop a detailed three-year pro forma business plan for an alternative living facility, including employee and personnel needs, and other costs of running the business, the estimated funding needed to launch the business, as well as an actionable, yet viable, timeline for going live.
The forecasting analysis we provided helped the client make the appropriate decisions for this prospective start-up.
Assisting in Growth Management Planning
The owner of a strategic channel program and marketing company saw opportunities for exponential growth, but wanted to be cautious about the timing of hiring professional staff to meet those opportunities. The owner reached out to vcfo for senior-level financial support to help create a business analysis and cash flow projection to assist in growth management planning. Our CFO prepared a three-year revenue plan and successfully assisted the owner in developing initiatives and making strategic and operational decisions that helped determine revenue goals and future professional staffing needs.
Enabling Successful Term Loan Closing
An oncology focused clinical trial management company was looking for senior-level finance support to help with the financial recapitalization of the company to fund ongoing operations and future growth. vcfo provided financial review and consulting services with respect to their business plan and banking relationships. Our analysis, insight and negotiation support led to successfully closing a term loan.
Providing Support to a Company Through Sales Transaction Process
vcfo was retained to support a client preparing to sell their business. The ownership had never experienced this type of a process, and as a result faced many challenges, including inconsistent financial records, regarding key components of the business. Additionally, the owners decided to keep the transaction confidential, and as such were not able to leverage any of the employees in the due diligence process.
The company had good legal counsel and adequate tax representation but no experienced financial staff in-house to lead or support this kind of transaction. Our vcfo CFO brought significant deal experience to the engagement and was able to fill an important role in the sale of the company.
The process from LOI to closing took approximately two months, anaggressive timeline, and yielded a significant valuation. A key obstacle that required consistent monitoring was lack of internal accounting staff able to produce key financial due diligence. To resolve this issue, vcfo’s Consulting CFO worked closely with their CPA firm.
vcfo was instrumental in the success of this transaction. vcfo’s knowledge of key tax elements in the structuring of the transaction, coupled withthe ability to work with their CPA and tax advisory firm, and our capacity to identify critical solutions to provide financial and operational due diligence materials produced invaluable results. vcfo also worked closely with the company’s attorney and management team to complete the lengthy asset purchase agreement schedules and provided overall guidance to the management team on multiple issues, including transitional and planning matters.
Helping a Company Resolve Shareholders’ Compensation
vcfo was retained by an architectural engineering firm who had structured a retirement program for three retiring shareholders. This program represented a fixed sum, payable over ten years as a deferred compensation arrangement under Section 409A of the Internal Revenue Service Code. After this program was instituted, the firm felt significant pressure to their earnings due to the economic downturn. It became clear that the existing retirement program was no longer sustainable.
If nothing changed, the company would have difficulty meeting its obligations under the plan.
vcfo’s consulting CFO guided and facilitated a renegotiation process that included building financial models to evaluate the numerous scenarios under consideration. vcfo was perceived as having a degree of independence with no stake in the outcome and acted as a liaison between the attorneys evaluating the 409A implications and drafting the agreements and with the M&A/consulting firm. The end result was a revised retirement program that provided the retirees with a level of security and lessened the cash flow burden on the firm. The resolution of this challenge freed up the owners to focus on what was most important: running the business.