Background:
Seth Atkinson is GM and business owner of KAE, a ten-person electrical services company. He was told by both his accountant and business coach that he was blowing the lights out with his business, pun intended! Yet his spider-sense told him something wasn’t adding up, which is when he talked to a Better Execute Business Coach for the first time.
The Process:
Better Execute, in conjunction with a virtual CFO, reviewed Seth’s business and financial books and quickly confirmed that Seth was correct in being concerned. There were several errors found in the books and a general lack of clarity on the Gross Profit numbers on specific jobs and services. Although revenue was looking okay, gross profit and revenue recognition timing were serious issues. It became clear Seth was going to run out of cash and become insolvent.
The Results:
Better Execute identified strategic finance and terms that were agreeable and seen as synergistic to all parties. It is still early days post-investment, but all signs show that KAE will bounce back stronger with better management as a result of the near catastrophic event.