Case Studies - Fractional CFO
$10 Million Business Receives a $40 Million Order
A $10M family owned manufacturing company receives a $40M order.
- Current $1M line of credit about to expire, no financing in place.
- The logistics involve producing 8M components in 8 week period and shipping them to 1,800 retail locations.
- Part-time Lauber Business Partner, through his extensive experience, completed analysis and requirements for scope and timing of financing.
- In addition, the Part-time Lauber Business Partner guided the management team to develop a strategic financing plan, which included identification and negotiation of key terms and conditions with customers and suppliers.
- Ensured alignment of key production milestones and financing requirements.
- Secured bids from incumbent bank and three additional lenders due to size and complexity of credit.
- A $24M package of traditional bank financing, progress payments from customer and extended terms from suppliers was developed.
- Part-time Lauber Business Partner stayed very involved with monitoring and managing to key production deliverables and financial elements of this contract.
- Company’s success allowed it to be considered for a similar contract from a new customer.
What this meant to company
- Secured very large new contract.
- Open new line of business with significant long term potential.
- Successful completion of the order, significantly increased future revenue potential due to expected follow-on orders and new customer potentials.
- Increased level of repeat business and customer retention.
- Increased enterprise value.
The value of a Part-time Lauber Business Partner
- Extensive domain expertise in senior financial position.
- Entrusted adviser to owner/CEO on many matters.
- Looks at business through perspective of maximizing competitiveness and long term enterprise value.
- Extended tenure with clients helps develop stronger financial and business acumen across client’s leadership team.