Situation
This client manufactures, sells, installs and services artificial turf systems that look, feel, and play like natural grass. A portfolio company of a local equity firm -- a team of professionals responsible for helping to build over 500 hundred companies, source over $6 billion in capital, and create over 200,000 jobs – they came to Penn Valley with a request to provide financial modeling expertise. While the timing appeared likely for a potential buy-out, the equity company wanted to determine what such an opportunity may look like, and how to potentially structure the transaction for a mutually successful outcome.
Solution
Working closely with the equity firm and key members of the client team, Penn Valley developed a financial model that provided insight into the potential of the company 3 to 5 years in the future. PVG also assisted in the preparation of the investor presentations, as well as played an active role in those meetings throughout a subsequent 90-day period
Impact
PVG work supported the successful buy-out and then continued with post buy-out support in the role of interim CFO to address the critical areas of banking, risk management and developing processes around reporting and job costing. In addition, PVG helped build out the finance staff. Finally, by instituting a robust formal forecasting process, PVG implemented controls regarding project profitability, and identified a new ERP system designed to position the company for achieving its growth plans.