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Risky Business

Transforming a CEO’s Hobby Into a Viable Enterprise

Life Sciences

Industry

Pharma, Chemicals

Manufacturing

Category

Vertical

Summary

While serving as CFO for a life sciences company based in Illinois, LeVert Management Consulting accomplished a complete financial turnaround, bringing the company from $0 profits and $0 retained earnings to financial stability and success with profits of $1.75M annually and a 233% increase in annual revenue.

Situation

The company’s CEO had started the business as a chromatography and chemical company. Chromatography was a big passion and hobby for this CEO. Despite this passion for the business, the company was not having success with their original business model.

 

When they sought the CFO services of LeVert Management Consulting, the company’s future was in jeopardy, with $0 in profits and $0 in retained earnings.

Approach

  1. Created a strategy to leverage the company’s current assets in the marketplace by transitioning the company’s final product from chemical/chromatography to a pharmaceutical scale-up business.

  2. Led a dialogue with the CEO and Board of Advisors to achieve alignment on long-term goals and the financial path required to fulfill them.

  3. Spearheaded the transition of the company to a pharmaceutical scale-up business

  4. Consulted with the CEO and sales team to diagnose the issues plaguing revenue growth.

  5. Developed and helped implement more efficient prospecting targets for the sales team

  6. Implemented a more advanced financial system to measure company and project profitability.

  7. Developed a financial forecast to give owners a true sense of the company’s cash position and financial performance.

  8. Sat on Board of Advisors to exchange ideas and facilitate implementation of the transformation process.

Results

  1. Successful turnaround transformed fraught organization from a CEO’s hobby into a financially stable and successful business enterprise.

  2. Annual revenue grew from $3M to $10M, an increase of 233%.

  3. Profits grew from $0 to $1.75M annually.

  4. Coaching from LMC transformed fledgling CEO into a seasoned executive capable of creating long-term vision and driving business outcomes.

  5. Obtained financial stability and the ability to focus on the company’s long-term vision and goals.

  6. Gained financial visibility through implementation of financial systems.

  7. Improved communication amongst production, sales, finance, and ownership.

The Details

When LMC came onboard, this company was making no money, had no realistic vision for the future of the company, and lacked coherent tactics to achieve their goals. They lacked not only a CFO, but also a financial strategy, an effective sales strategy, and proper checks and balances within the executive team.

 

By creating a new business model and strategy, coaching the CEO through the decision of the company turnaround, and gaining alignment and approval from the Board of Advisors, the company was able to pivot quickly and start on a new path forward. Having alignment on the new path and goals, we then created more efficient prospecting targets for the sales team, resulting in a substantial increase in their close rate and achieved growth of 233%, with gross revenues of $10M annually.

 

By implementing better systems and forecasts, and setting clear goals and KPI’s related to revenue generation, our services enabled this company to achieve financial success. By continuously keeping an eye on the bottom line and progress towards KPI’s, the company learned to ensure continued financial stability and manage productivity in order to sustain growth.

 

Within 3 years, this company went from $0 profits and $0 retained earnings to financial stability and success with profits of $1.75M annually and a 233% increase in annual revenue. 

Services Provided in This Story

  • Turnaround Services

  • Financial Strategy

  • Strategy Services

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