OEM Manufacturing

Issue Faced. The Company hired ERG as an interim CFO so they could terminate their existing CFO and conduct a search for a permanent CFO. During the first week of the assignment, the Company received numerous order cancellations and postponements from its customers. These changes resulted in a revision of the sales forecast from $45M to $22M (from a prior year of $30M).

Industry. OEM Manufacturer

Location. Westboro, MA

Size Of Company. $30M

Who Brought In The Team/Individual. President

Goal Of Assignment. Seamlessly continue accounting/finance functions during search for permanent CFO.

Actions Taken. Financially guided company through downturn in economy and resulting decline in sales. Restated prior year’s income to lower tax payments by $1.6M, established procedures for prioritizing vendor payments, prepared detailed financial model which was basis for laying off 2/3 of the work force and lowering pay for remaining employees, raised $1M in stockholder loans, maintained banking relations, and assisted the Company in working with investment bankers (the company was sold the following year).

Duration. The assignment, initially intended to last three months, expanded to nine months as the requirements for the permanent CFO changed.

Resources. One ERG CFO

Submitted By. Douglas Smith