A $75 million software company experienced financial control complications and defaulted on several loan covenants with its lender. At the bank’s request, the client engaged Lighthouse Management Group to review and produce financial statements, stabilize cash flow and find alternative financing.
Lighthouse Management Group quickly determined that many of the company’s financial difficulties resulted from the complex financial controls exceeding the existing CFO’s skillset. Lighthouse Management Group provided an interim CFO and worked with the client to develop weekly, monthly and five-year projections, improve financial controls and prepare a recapitalization plan. In conjunction with the financial and operational review, Lighthouse Management Group was able to negotiate a forbearance agreement, allowing the company the time it needed complete its recapitalization efforts.
Lighthouse assisted management in the hiring of a permanent CFO to implement a new strategic financial plan, which included a recapitalization with a new lender that provided greater liquidity and a flexible structure tailored to the client’s recurring revenue business model.