The challenge: Employee turnover and incorrect accounting procedures
Our client was a mid-sized manufacturer that lost key personnel and fell behind on monthly accounting after it was purchased by a private equity firm. The new PE owners had brought in a large CPA firm that was not local and could not provide GAAP basis financial statements.
The solution: Hands-on turnaround advisory and accurate financial reporting
The company needed an accounting advisor that could be hands-on and start work right away to right the ship. They reached out to Mowery & Schoenfeld’s client advisory services team for help. The next day, our team performed an assessment and outlined opportunities for improvement. Over the next few weeks, we:
- Implemented GAAP reporting and performed several months of catchup accounting
- Assembled detailed financial statements, which revealed that their financial challenges were even more extensive
The results: Data-driven decisions and recovery
The new reports armed our client with crucial data to renegotiate their largest customer contract, getting the large price increases they needed to stay afloat.
Following the turnaround engagement, our team stayed on as accounting advisors and the company recouped their losses, eventually seeing $1 million in monthly positive cash flow.