Consulting & Advisory

Wesley Partners' clients experience significant sales growth through the use of an array of consulting services focused around the creation, online distribution, and monetization of custom content for their business.

 

Managing Financial Risk

Situation

A well known marketing technology company was facing an uncertain financial future. The firm felt it needed to reduce its workforce while at the same time trying to plan for potential new business projects which were scheduled to close. The firm had absolutely no financial oversight in place and did not know whether they would have enough cash from month to month to meet payroll and other immediate financial needs.

Solution

A complete business plan and forecast model was built which projected cash flows out into the future while identifying sales and expenses. With this model and for the first time, the company was able to proactively take steps to ensure the company’s ongoing cash worthiness, and identify opportunities to improve cash flow. This solution also gave rise to their realization that there were needs to improve the overall sales process.

Results

  • Objectives for the next 12 months were developed and communicated to management, instilling organizational alignment.
  • A $30 million new business product opportunity was identified during the process. Resources were allocated to complete and launch the product.
  • Cash flow predictability was established, eliminating the need to do more radical staffing reductions in the business and allowing new resources to be allocated to the new product solution.
  • At least $100,000 in monthly cash flow opportunities to improve cash management was identified.

Mobile Lime and Stop & ShopMergers and Acquisitions

Situation

An opportunity was identified to acquire a fledgling Stop & Shop funded custom development software business. The business had been developing several prototypes of in-store technology. One of the applications was a mobile shopping solution. However, Stop & Shop was no longer interested in funding this enterprise. The firm had no commercial product at the time, but two prototype products had tremendous potential. The entity was out-of-cash and seeking an investor. MobileLime was a small entrepreneurial company with limited resources. However, there was tremendous synergy with the Stop & Shop entity.

Solution

A creative acquisition plan was developed and executed. The plan needed to be both attractive to Stop & Shop while attracting additional investment to support the acquisition. The plan was constructed to minimize investment risk by rewarding certain milestones. These milestones represented significant evidence that the solutions in development had demonstrated commercial viability. Financial projections had to be extremely accurate because resources would be very limited.

Results

  • Acquisition was completed in April 2007.
  • Business plans including sales projections and other financial metrics were achieved according to plan by year end 2007.

CendantBusiness Turnaround

Situation

In 1998, Cendant Corporation was accused of fraud after their company's merging of CUC International and HFS Incorporated in 1997. At the time, Vice Chairman E. Kirk Shelton had inflated the company's revenue by $500 million over a period of three years. When this report was released to the public, the resulting damage to the market value for the company was approximately $14 billion, with their stock tumbling from a high of $41 down to nearly $12. This fiasco was the largest case of accounting fraud in the country's history up to that time. Mr. Shelton is now serving a 10 year prison sentence.

Solution

Starting in 1999, Bob Wesley led the restructuring of the financial and operations processes as the head of Finance, Marketing Operations and Technology to eliminate the major accounting deficiencies that gave rise to the fraud. In addition the processes had to be substantially altered to reflect recent changes in accounting standards. Concurrently, certain business models were found to be inaccurate, resulting in several unprofitable contracts. A new pricing strategy was implemented along with strong business metrics, plans and operating procedures.

Results

  • All accounting irregularities were addressed thoroughly and directly resulting in a clean auditor’s opinion issued by Deloitte.
  • The Division made over $10 million in profits after incurring losses in the prior year.
  • Unprofitable customer business arrangements were eliminated. Overall profit margins increased. One of the customer relationships renegotiated was with Citigroup.
  • The overall Company’s stock price increased, hitting $25 per share.

 

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