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Case Study

Providing Strategic, Operational, and Financial Transformation to the Office of the CFO

Team Size
2 Senior Managing Directors
Project Duration
10 months

The Situation

A family of fulfillment and engineering and construction companies specializing in the telecommunications and broadband infrastructure industry, providing a widely diversified set of telecommunications infrastructure development for services for Fortune 100 carriers, backhaul providers, small and large rural telcos, including emerging power cooperative markets providing rural broadband was facing a major revenue decline with a primary customer as well as strategic, financial, and operational issues.

Services

CFO Services

Strategic & Financial Advisory

Operational and Financial Performance Improvement

Sales and Revenue Optimization

The Execution

  • Led the strategic financial and operational transformation of this sponsor-owned portfolio company from a company principally focused on the service and installation of satellite TV services to one exclusively focused on the engineering and construction of telecommunications fiber infrastructure.
  • Unwound 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.
  • Unwound high deductible property and casualty insurance programs designed for the satellite TV service business and negotiating replacement programs appropriate to the construction business.
  • Built business development and sales group to serve the needs of the construction business.
  • Negotiated and successfully closed the sale of the satellite TV service business.
  • Migrated legacy technology platforms to a single ERP platform to serve the construction business.
  • Identified and successfully exited money losing service lines such as utility locates and various construction contracts.
  • Relocated corporate headquarters from King of Prussia, Pennsylvania to Dallas, Texas.
  • Rebuilt the entire C-suite including CEO, CFO, GC, and CAO.
  • Developed and implemented new compensation and equity participation plans that aligned management with the go forward needs of the business.
  • Successfully managed secured creditor relationships during the pendency of the turnaround.

The Results

The Satellite TV business was on a trajectory to lose 25 to 40% annually of its top line 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 it’s revenue coming from satellite TV service lines and a negative top line growth trajectory that would struggle to break even, became a $225M business focused on telecom construction – growing 30% per year with 10 – 12% projected EBITDA margins.