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CASE STUDY: B2B CFO® Partner Provides Financial Transformation, Multiplying Client’s Company Worth

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Randy Walther - B2B CFO® - Arlington, MA

Randy Walther - B2B CFO® - Arlington, MA

How a B2B CFO® Partner helped a Business Owner Sell Their Company for $25 Million

My one and only goal is to support my client all the way until their vision is fulfilled.”
— Randy Walther
ARLINGTON, MA, UNITED STATES, January 24, 2023 / -- Bringing strategic business skills and a breadth of financial leadership experience, Randy Walther, B2B CFO® partner, assisted the CEO of a multi-million-dollar security services company contending with cash flow, market growth, and business valuation challenges. He did this by revitalizing the company’s financial processes, maximizing market strengths, implementing corrective actions, securing funding, and improving EBITDA. This resulted in a tripling of the company's valuation over a two-year period.

The Situation

In 2019, Walther was introduced to Tim, the CEO of a Boston-based multi-million-dollar facilities and events security provider. The business was in its tenth year and Tim was in the early stages of exploring his exit plan and business sale, but knew he needed to make changes to improve the company’s valuation. The business was comprised of static security guard services for hotels, condominiums, office buildings, hospital wards, entertainment venues, and even security detail for events such as the Boston Marathon. At that time, the company was hitting $12 million in annual revenue, how-ever, their growth was limited by a restricted cashflow.

Like many businesses, they offered services to different customer segments, but lacked the financial analysis to maximize segment growth potential. In order to successfully manage profits and cash flow, the company needed to shift the focus to their most profitable customer base and consequently increase the lifetime value of these customers.

Tim had employed a CPA and an accountant, but he needed a strategic business advisor and B2B CFO® whose financial acumen and experience would not only help equip the company with objective decision-making, but also help improve the company’s value to provide Tim with a financially sound retirement. Additionally, Tim needed a financial champion to work with his team to provide the financial strategies to help them overcome growth plateaus and expertise in cash flow management, financial reporting, and budgeting/ forecasting as well as the macro components of analyzing the company’s greatest business segments of opportunities.

The Challenge

Cash flow challenges impeded the company’s ability to take on new, major clients given they lacked the cash to hire more staff and make the investments needed to broaden the company’s geographic foot- print. At the time, the company often struggled with making payroll.

Additionally, Tim’s five-year goal was to retire with the hopes of selling the business for roughly $4 million to $5 million. But, at that time, the business valuation hovered around $2 million, significantly less than desired.

The Pandemic Strikes

In March of 2020, everything changed. The pandemic crippled a portion of Tim’s business literally overnight, where he lost 15% in revenue. Most of the event detail security and a large portion of the static security business dissolved. With deep concerns regarding the other business segments, Walther and Tim had to strategize ways to pivot the organization based on new needs resulting from the pandemic.

After considering multiple scenarios and weighing all options, Walther decided the best course of action was to apply for the Paycheck Protection Program (PPP loans) created to provide loans to help businesses make payroll and cover other expenses during the pandemic. Tim’s company qualified for $2.1 million in PPP funding which they later learned was forgiven and the key to the company’s financial transformation. Helping with scenario-based modeling, Walther knew the PPP loan could provide a runway for the company to strategically reinvest money back into the business.

Learn More: Read the full case study and see how Randy helped this CEO through the pandemic and helped him sell his business for $25 Million.

Randy Walther
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