Restoring Financial Control & Stakeholder Confidence For a 9x Exit
AT A GLANCE
Challenges:
Inaccurate cash forecasting and limited financial insight
High seasonality straining liquidity and line of credit availability
Line of credit covenant restrictions limiting flexibility
Rapid growth outpacing financial systems and internal capabilities
Pressure from banks, board, and shareholders after missed projections
Leadership forced to slow growth to preserve liquidity
Key Takeaways:
Built reliable, driver-based cash forecasting and financial reporting
Restored credibility with banks, board, and shareholders
Enabled leadership to reaccelerate growth and profitability
$6.7MM value creation; successful exit at 9x EBITDA
OVERVIEW
This high-growth, family-owned food manufacturer faced strong demand but was constrained by financial uncertainty. Despite ample data, it lacked actionable insights for effective cash management and forecasting. Following an unprofitable year and missed projections, scrutiny from stakeholders intensified. Leadership was forced to turn away growth opportunities and sacrificed profitability to manage cash risk. The company engaged Turning Point to stabilize financial operations, rebuild stakeholder trust, and create a scalable financial foundation for sustainable growth.
ACTIONS
Embedded directly into the business to understand operational, sales, and financial drivers
Built driver-based cash forecasting and LOC availability projections based on seasonal AR and inventory
Integrated financial reporting across executive leadership, including monthly presentations to a board with significant family presence
Negotiated working capital solutions to address high seasonality, resulting in $1.5MM additional cash to the seller
Supported bank communications and renegotiation of LOC terms; reviewed GAAP absorption to maximize inventory borrowing capacity
Equipped and coached the client Controller to strengthen long-term financial leadership
RESULTS
Achieved consistent single-digit forecast variances within six months
Influenced the investment bank to model projections incorporating CapEx-driven growth rather than space constraints
Full turnaround resulting in $6.7MM of EBIDTA benefit
Managed a complex due diligence process for a successful exit at 9x EBITDA
“Turning Point truly understood our business. They became an extension of our team, helped us rebuild trust with our bank and board, and gave us the confidence to lean back into growth.”
-CEO, CPG/MANUFACTURING CO.
