Driving a strategic, operational, and financial transformation for a telecom company

Key metrics:

Went from struggling to break even to $225M business
On target to grow 30% per year with 10-12% projected EBITDA margins

Value levers pulled:

CFO services
Strategic advisory
Financial advisory
Operational and financial performance improvement
Transaction advisory
Supply chain optimization
Sales and revenue optimization

Picture this...

You’re a family of fulfillment, engineering, and construction companies specializing in telecommunications and broadband infrastructure. You provide a range of telecommunications infrastructure development services for Fortune 100 carriers, backhaul providers, and small and large rural telephone companies, including emerging power cooperative markets providing rural broadband. You’re facing a major revenue decline with a primary customer, as well as strategic, financial, and operational issues.

You turn to Accordion.

We step in as CFO and lead the strategic financial and operational transformation of your sponsor-owned portfolio company from one principally focused on the service and installation of satellite TV services, to one exclusively focused on the engineering and construction of telecommunications fiber infrastructure. This involves unwinding the robust shared services platform built to serve the satellite TV service business and rebuilding a functional corporate capability to serve the needs of the telecom construction business. We also unwind the high deductible property and casualty insurance programs designed for the satellite TV service business and negotiate replacement programs appropriate to the construction business.

Your value is enhanced.

Additionally, we:

Build business development and sales groups to serve the needs of the construction business.
Negotiate and successfully close the sale of the satellite TV service business.
Migrate legacy technology platforms to a single ERP platform to serve the construction business.
Identify and successfully exit money-losing service lines such as utility locates and various construction contracts.
Relocate the corporate headquarters from King of Prussia, PA to Dallas, TX, and rebuild the entire C-suite, including the CEO, CFO, GC, and CAO.
Develop and implement new compensation and equity participation plans that align management with the go-forward needs of the business, while successfully managing secured creditor relationships during the pendency of the turnaround.

Enhanced value:

Your trajectory is transformed. The satellite TV business was projected to lose 25 to 40% of its top line annually which—coupled with the extensive fixed-cost structure—would have likely resulted in a catastrophic failure of the business. What was a $300M top-line business, with 75% of revenue coming from satellite TV service lines and a negative top-line growth trajectory struggling to break even, is now a $225M business focused on telecom construction, growing 30% per year with 10-12% projected EBITDA margins.