The Company
Industry: Consumer Recreation
Entity Type: PE-Owned
Operating Region: Bicoastal U.S.
Size: $35M
The PROBLEM
The client needed to unify the business’s three entities under one umbrella to create scalability, shared services, and economies of scale. The incumbent Chief Financial Officer retired, so the PE firm needed an interim CFO to conduct a comprehensive review of the current financial models, roll forwards, month-end close, and consolidation process for the three businesses.
The Solution
McDermott + Bull Interim Leaders deployed an interim CFO with over 20 years of experience in accounting and finance, with nearly 10 of them in public accounting. The interim leader had significant experience in designing, implementing, and reconfiguring poorly functioning accounting systems, with a specialization in M&A, consolidation, reorganization, and expansion strategies.
The RESULT
The interim leader was originally brought on to address financial modeling and ensure long-term financial stability. However, the scope of the role shifted abruptly due to a short-term cash crisis. The consultant quickly developed short-term cash flow models spanning 6 – 8 weeks, taking immediate financial management actions such as issuing payments and managing cash flow tightly to address the crisis. Additionally, the holding corporation had neglected intercompany accounting, resulting in a $200K error in their P&L statement, which required immediate correction to ensure accurate financial reporting.
Improved Financial Management
Stabilized the organization’s cash management and successfully rebuilt both accrual and cash basis projection models, addressing previous inaccuracies in financial forecasting.
Revenue Recovery and Standardization
Built a consolidation process in QuickBooks, aligned charts of accounts across the entities, and created an eliminations company to ensure financial and P&L statements accurately reflected the true financial performance of the entire organization.
Crisis Management and Projections
Assisted the CEO in navigating a severe cash crunch, updated the company’s rolling 3-year projections, and identified $150K that could temporarily be transferred to one of their entities.
Mark McConnell
Senior Managing Director, McDermott + Bull Interim Leaders
mcconnell@mbexec.com
Mark McConnell serves as Senior Managing Director for McDermott + Bull Interim Leaders, where he forges relationships with companies addressing transition, change, and transformation. He partners closely with clients who require on-demand consulting resources to bridge leadership gaps and propel their business forward. He has experience working with emerging and enterprise-level companies across numerous industries and has depth in functional areas such as finance, accounting, human resources, and operations.