A private equity firm purchased a struggling mid-sized hazardous waste control company that provides treatment, storage and disposal of radioactive and hazardous waste and its byproduct materials.
The newly acquired company was plagued with operational and financial inefficiencies as well as poor resource planning. It had major bottleneck issues with its proprietary software that it used to communicate with customers, store purchase orders, issue invoices, schedule deliveries, manage waste disposal process and document certifications for state regulators. The company was also struggling with proper revenue recognition processes and impacted by failures to collect receivables.
The private equity sponsor needed expert help with restructuring operational and financial reporting, streamlining processes and implementing a strong financial leadership team capable of optimizing its new portfolio company’s profits.
Larx Advisors was engaged by the private equity sponsor to strategize, manage and help execute operational and financial improvements. With extensive leadership, advisory and implementation experience in finance, operations and technology, the Larx team was able to work closely with sponsor and company management to swiftly assess and begin addressing the problems at hand.
In the finance department, Larx took over the CFO responsibilities on an interim basis. The team built company and departmental budgets, created standardized monthly reports for the sponsor and bank participants, and assisted the controller with updating accounting procedures.
To solve the bottleneck issues caused by communication gaps and software deficiencies, Larx worked cross functionally with IT, operations and account management teams to identify root causes, incorporate changes and facilitate adoption.
Working closely with sponsor and company management, Larx was able to streamline processes, develop consistent reporting and implement powerful and effective solutions.
The changes made in finance resulted in faster revenue recognition, quicker collections and better reporting, all of which optimized revenue. The operational process and software overhaul increased productivity, bolstered the bottom line and saved significant time, resources and frustration.
Ultimately, Larx was able to transform a struggling waste management enterprise into an efficient and profitable portfolio company for its private equity investor.
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