Building Banking Relationships in High-Growth Company

Challenge 

This scaling, emerging growth company grew organically without any outside funding for it’s first five years. Over those years, company grew revenue 10-fold and began to turn a profit; yet during growth their working capital needs grew disproportionately to their expanding revenue. The management team had five-year goals that included geographic expansion, partner expansion, and acquisitive growth.  Thus, they were looking to refinance and restructure debt, while also increasing liquidity to fuel their growth.

The business owners knew they needed increased liquidity to fuel their growth. They also knew they needed assistance to build a robust and scalable foundation in accounting and HR while building a business strategy and corporate development functions. The challenge was how to do this cost effectively yet, with an elevated approach. Without deep corporate finance capability, they needed help in navigating banking relationships to restructure the capital stack.

Solution 

Working with the business owners, GrowthLab focused first on building out virtual accounting capability and processes to leveraging greater technology. In parallel, GrowthLab developed a corporate finance and accounting calendar to implement cadence, expectations, and ownership. (Learn more here)

Due to the urgency of the customer’s financing needs, the GrowthLab Team quickly developed their first Annual Operating Plan with integrated cash flow planning. The work during the first six months of the relationship focused on refinancing and restructuring their banking relationships in order to fund growth. The GrowthLab Accounting, FP&A, and CFO Teams worked hand in hand to build the accounting foundation, memorialize the company’s story, and establish the initial annual strategy documents. The GrowthLab team used these to work with the bankers to move through underwriting, credit committee, and funding within eight months.

GrowthLab leveraged all of this work to help the management team develop and adopt an annual strategic business cycle process that included AOP, Compensation structure, Shareholder reporting, and Long-range planning. As acquisition opportunities were identified, GrowthLab also assisted with screening and due diligence. 

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Results 

After working with this company, GrowthLab was able to get their debt refinanced with favorable terms while consolidating other debtors. A year after we initiated this effort, the balance sheet is cleaner which gives the company greater financial flexibility and positions them to take advantage of new acquisitive opportunities. The new accounting system gives transparency and visibility to project planning and management. We also implemented cadance and rigor around monthly and quarterly meetings for communication.  

The Annual Strategic Planning Process has positioned the company and Executive Leadership Team to think strategically, long-term about the risks and opportunities to the business while improving on feedback loops using dashboards and metrics improving agility around execution and communication with team members. 

Customer Highlights

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About GrowthLab

GrowthLab is your customized team of experienced business and financial professionals who find the right solutions to take your business to the next level.

Tizra

“GrowthLab has provided invaluable tools and advice to Tizra’s management team, helping us scale smoothly and confidently.“

Abe Dane, CEO at Tizra

NAMI Rhode Island

“GrowthLab earns my highest praise for professionalism and affordability. I have hired them to improve our financial reporting... they were hands-on, patient, and able to move our organization... to an up-to-date and easy-to-use system.”

Christine Earley, Ph.D. Board Member & Treasurer at NAMI

The Purple Carrot

“…well-versed in all areas of finance, providing strategic guidance for early- stage start-up businesses… possesses a great work ethic, deep insights into financial analysis and modeling, and a collaborative approach to his work. An asset to any team.”

Andy Levitt, Founder & CEO at Purple Carrot

FluidSense

“GrowthLab is a tremendous partner for FluidSense. Allowing our core team to focus on engagement and development, while GrowthLab focuses on the financial and bookkeeping aspects.”

Jeff Poole , COO at Fluid Sense

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