Interim CFO Drives Triple EBITDA Growth and Leadership Stability for PE-Owned Food & Beverage Company
Top 3 Areas of Impact
Increase in EBITDA over 9 months from $20 million to $60 million
Increased liquidity and improved lender relationship
Better positioned company for potential exits
Summary
A private equity (PE) owner of a $400 million food and beverage company was looking for support to help its portfolio company overcome significant financial and leadership challenges. BDO was hired by the PE firm as interim CFO and financial planning and analysis (FP&A) manager to improve financial planning, cost management, and profitability, collectively boosting the company's EBITDA from $20 million to over $60 million in nine months while positioning it for potential exit paths.
The PE owner needed to replace its portco’s long-serving CFO because the executive had not provided sufficient financial planning and analytical support to the management team. Without a CFO, the portco still needed to prepare its annual budget, the roll-forward of standard costs, the planning of the year-end physical inventory, and the preparation for the annual audit.
The business also needed to manage a tight liquidity situation with a new lender. Further complicating the portco’s leadership turnover, the CFO that the PE firm hired as a successor resigned just three months into their tenure because of an inability to handle the complex financial issues facing the company.
Results
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Increase in EBITDA over 9 months from $20 million to $60 million
