Family Owned and Operated Commercial Flooring Installation Company

Situation Overview:

  • The largest family owned and operated commercial flooring installation company in the U.S. was experiencing rapid growth and had out grown their capital structure and human capital management.
  • After going live with a new enterprise management system, the company discovered the implementation was flawed which resulted in the inability to produce meaningful financial reports. Further, they were unable to satisfy collateral field audits and subsequently delayed two years of audits.
  • In addition, the company’s existing credit facility was over extended and in consequence of their financial reporting issues, existing lenders would not commit to a renewal without a financial advisor assisting the company.
  • The company retained an Armory professional to provide financial advisory services. The professional was later appointed as Interim CFO to the company.

Armory Solution:

  • The Armory professional developed a 13-week cash flow and collateral forecast model including weekly updates, projected project profitability and backlog reporting.
  • Assisted the company with managing a reimplementation of the accounting enterprise system.
  • Negotiated a short-term liquidity bridge while audits and monthly financials were updated.
  • Implemented a three-year strategic plan for controlled growth and modified organizational structure.
  • Implemented various sales compensation and senior management incentives focused on contribution profits and enterprise value creation.

Engagement Results:

  • The Armory professional successfully negotiated a new credit agreement with existing lenders three time the original size.
  • During the Armory professional’s engagement, sales grew an additional $30mm. All overdue audits were completed, and monthly financials were delivered on a regular basis 5 days after month end.
  • The Armory professional assisted with the recruiting of a permanent CFO for the company.
  • The Company realized most profitable year in its 30-year history one year after conclusion of engagement.