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A civil construction company specializing in creating access roads and providing land clearing and bridge installation services planned a carve out of two business units in the Northeast.
The $100 million enterprise engaged the experts at Larx Advisors to help navigate financial and operational requirements and pursue new growth opportunities presented by the initiativ
Larx collaborated closely with the client to provide accounting and operational expertise, lead the project management office (PMO), and provide solutions for the first 100 days of challenges.
Larx served as Interim Controller, standing up a dedicated enterprise resource planning (ERP) system and implementing new revenue recognition policies in alignment with Generally Accepted Accounting Principles (GAAP). The Larx team also drove a number of tactical initiatives including company coordination with external auditors, negotiation of a settlements for working capital shortfalls, and development of financial, solvency, and forecast models. Larx also oversaw the management of union payroll nuances and challenges.
As part of this acquisition, the company was operating under a transitional services agreement (TSA) period which required a swift conversion of vendors and hiring additional staff to complete back office functions in a timely, GAAP compliant manner.
Managing both carve-outs, Larx assisted the company with the complex operational and financial requirements while increasing revenue from $34 million to $100 million.
As part of the PMO process, Larx built out the financial back office and sourced and hired a full-time Controller and Accounts Payable and Payroll Specialists. This allowed the client to operate independently prior to the 90-day TSA expiration period. Larx also built a variety of financial models to assist parent and subsidiary entities with strategic decisions around resource deployment.
What started out as a 100-day carve-out initiative expanded into an 18-month engagement as the client leveraged Larx’s expertise to identify and execute on new growth opportunities.
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