Goal

Quadruple revenue and increase operating profit margin from 6% to 20%.

Actions

CFO Options supported this company’s organic growth by helping establish quotas and variable compensation plans for existing and additional sales positions, for a new director of sales and for account managers growing the revenue from existing customers.

Further, we built a strategic plan and financial model that demonstrated that the entrepreneur needed to also grow by acquisition to achieve his growth goal. Bringing our experience in identifying, analyzing, financing and closing on the acquisition of small to lower middle market businesses without audited financials, CFO Options helped this company close and finance two acquisitions at very low multiples of incremental EBITDA and roughly $2.2M of additional annual revenue.

Result

The low acquisition prices, as a multiple of incremental EBITDA, increased enterprise value by nearly $8M with a cash outlay of only $400,000 preserving cash for future acquisitions.