Service Type: Physical Commodity Risk Management
Project: Unexplained Performance Shortfalls and Cash Flow Issues
Our client, a private equity-backed business, was experiencing significant shortfalls in both its operating performance and cash flow. The shortfalls were threatening to put the company into bankruptcy and wipe out the investment of the private equity owner.
Approach & Results:
The private equity owner requested we partner with the management team to establish an updated operating plan and budget for the business. Once that was completed, we built a rolling 13-week cash forecast. At the same time, we completed a “3 Factor” model to forecast EBITDA, the Balance Sheet, and the Cash Flow statements on a monthly basis for 3 years.