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Case Study
The Client: A biotech startup needing
to raise capital.
The Challenge: The Client needed to
raise its first institutional round to complete
initial animal studies. The co-founders completed
a draft of a presentable business plan but early
investor feedback indicated that the financial
projections were unrealistic and unacceptable.
The financial presentation needed to clearly
demonstrate the use of capital and what additional
capital requirements would be required upon
successful completion of the animal studies.
The Client did not have the experience to undertake
this financial presentation and had limited
resources to engage an experienced full-time
CFO.
The Solution: Rankin-McKenzie was brought
in to meet with the co-founders and review the
business plan. Rankin-McKenzie devoted time
with the co-founders to understand the business
plan and then develop a five year financial
model to show the cash flows required to execute
the business plan. After several iterations
a final financial model and summary was incorporated
in the revised business plan for investors.
After reviewing with previously contacted investors
and several new investors that Rankin-McKenzie
knew, two investors expressed interest in negotiating
a term sheet with the Client.
In addition, the Rankin-McKenzie partner assisted
the Client making sure that the existing financial
statements were reliable and understandable.
The Client was impressed with our ability to
problem-solve in a time of their need.
The Partnership: Rankin-McKenzie continues
to provide ongoing cost effective financial
advice and services to help the company during
its capital raise and subsequent events.
Case Study
The Client: A rapidly-growing distribution
company.
The Challenge: The Client suffered from
cash flow issues caused by rapid growth, undercapitalization
and lack of financial management expertise and
control processes. The Client accumulated excessive
losses and struggled with liquidity issues that
threatened future viability. They had grown
too rapidly and lacked processes and working
capital to fund their success. The Client needed
financial restructuring and a solid, experienced
financial advisor if the company was to succeed,
but could not afford a full-time CFO.
The Solution: Rankin-McKenzie was brought
in to clean up the company’s finances and
help find bridge capital. Rankin-McKenzie helped
the Client establish new banking relationships
and secure a loan. Interim short-term financing
was also secured to fund seasonal business.
Subsequently, a plan was developed to help the
Client set goals for predicted future growth
and cash flow requirements. The Client was impressed
with our ability to problem-solve in a time
of their greatest need.
The Partnership: Rankin-McKenzie continues
to provide ongoing financial advice and services
to help the company during its next growth phase.
Case Study
The Client: A Technology Start-up.
The Challenge: The Client needed to
raise significant equity capital to fund the
continuation of their product development and
their sales and marketing efforts. Previously,
the Client had raised limited capital from local
Angel investors, but now needed to attract sophisticated
institutional investors. This was the first
time the CEO had headed a venture backed start-up
and he needed prudent business counsel to avoid
the typical pitfalls of a young company. Additionally,
the Client’s daily bookkeeping was being
handled by an administrative assistant with
little accounting experience. Accounting records
were inaccurate and incomplete. The CEO was
understandably concerned that his accounting
records would not pass the rigorous due diligence
conducted by the new institutional investors.
The Client needed an experienced CFO who had
successfully raised venture capital and who
could serve as a trusted advisor to the CEO.
He also needed to make sure the day-to-day was
being handled in a professional manner that
would give investors confidence.
The Solution: At the recommendation
of the Client’s attorney, Rankin-McKenzie
was engaged to both assist the CEO in raising
equity capital and to be responsible for the
company’s accounting functions. Rankin-McKenzie
utilized a team-approach to affordably meet
the client’s needs. The team consisted
of (i) a CFO who had extensive start-up and
capital raising experience and (ii) a Controller
who is a QuickBooks expert. The Rankin-McKenzie
team helped the CEO successfully raise over
$7 million in equity capital from a top-tier
venture capital firm. Moreover, the team’s
careful management of the company’s books
and records made the VC due diligence a painless
process. The CFO served as the CEO’s close
confidant to help guide the Client through numerous
challenging growth opportunities.
Case Study
The Client: A Technology Start-Up.
The Challenge: The Company had no accounting
system whatsoever. A bank account had been opened
and transactions were accumulating. There was
no mechanism in place at all for financial reporting.
The Solution: Rankin McKenzie was engaged
to provide Controller services in the very early
stages. Our controller transitioned the accounting
system from a “shoe box” to QuickBooks.
Along the way, numerous procedures were established
such as a purchase ordering system, a system
for tracking and paying sales commissions and
a streamed lined method for recording and paying
expense reports. Rankin McKenzie worked with
the start up until such time when a full time
Controller was needed and helped them with their
search for filling the position. We were able
to ease the transition by providing a detailed
listing of in-process projects.
The Partnership: Rankin-McKenzie continues
to provide ongoing financial advice and services
to help the company during its next growth phase.
Case Study
The Client: An E-commerce Start-up.
The Challenge: Sales were beginning
to grow rapidly and the company was in need
of a clear, concise mechanism for reconciling
sales per the company website to the back gateway
and bank.
The Solution: The Rankin McKenzie Controller
established procedures for tracking and reconciling
sales on a monthly basis. Additionally, numerous
financial reports were developed that have provided
management with valuable tools for running the
business successfully.
The Partnership: Rankin-McKenzie continues
to provide ongoing financial advice and services
to help the company during its next growth phase.
Case Study
The Client: A plaintiff’s law firm.
The Challenge: Through targeted advertising,
the number of cases was rising rapidly, but
the company needed to borrow more and more money.
The Solution: The Rankin-McKenzie CFO
put in incentive bonuses for each legal team
and changed the monthly reporting to show profit
centers and expected bonus levels at current
productivity. Productivity increased, profits
skyrocketed, and the law firm paid down debt.
The Partnership: Rankin-McKenzie continues
to provide ongoing financial advice and services
to help the company during its next growth phase,
an expansion to other cities.
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