A leading foundation repair company in Texas that had been in business for three generations was in an extreme liquidity crisis and on the brink of bankruptcy.
With more than 300 employees and past annual revenue in the tens-of-millions of dollars, the company had experienced 27 months of losses without accurate or actionable financial reporting.
The enterprise needed expert guidance and oversight in restructuring and developing new finance planning and analysis (FP&A) processes. As a trusted corporate finance advisory firm with experience leading middle market enterprises through successful turnarounds, Larx was engaged to help the client restructure and rebound.
The Larx team took immediate action to create a 13-week, roll-forward cash flow model and assess liabilities in order to remove the company from immediate danger and enable it to continue operating during restructure.
Simultaneously, Larx conducted a holistic assessment of the business to identify areas of risk and opportunities for growth and it created a roadmap for execution. Larx approached the assessment from a balance sheet perspective in order to prioritize liquidity and enable the business to stabilize cash flow.
Larx collaborated closely with company management to refine finance and accounting processes, reporting procedures and operational policies. Larx also took the lead in establishing roles and responsibilities within the finance and accounting team to improve overall functionality and control.
Larx provided leadership and stability at all levels of the organization to move it from the brink of bankruptcy to profitability. Within 90 days, Larx guided the company back to profitability, and within six months, generate a seven-figure operating profit.
It did this through developing the structures and processes required to generate cash, stabilize the business and create a rhythm and cadence for finance, accounting and operations. Larx also worked closely with staff, vendors and lenders to repair relationships and find mutually beneficial solutions.
See how Larx Advisors helped this client turn its operations around with a system implementation and significantly grow sales by optimizing its marketing efforts.
Enter your email, and we’ll be in touch with you to see how we can help you navigate through your changes.