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Restructuring, burn rate management and value retention

Future matters solutions

 

  1. Identify opportunities for cost reductions and efficiency improvements

  2. Prepare the restructuring plan

  3. Plan execution/offer implementation assistance

  4. Mitigate legal and PR risks​ 

Relevant experience

 

Business Restructuring in Response to a Change in the Market Conditions

In response to the deterioration in market conditions and contraction in potential revenue sources, a member of our operational team and the acting CFO of a large Internet startup led the preparation and implementation of the restructuring plan. As a result of the drastic and rapid cost-cutting measures, improved cash collection and increased process efficiencies, the cash burn rate was cut ten times from $400 thousand per month to $40 thousand. Restructuring was performed in a responsible manner that minimized the risk of legal actions against the company and its directors. Now that a clear path to break-even had been established, the company managed to attract investments and preserve its core value and development potential.

 

Moving Focus from Product Development to Cash Generation

Our team facilitated the rapid and smooth transition to cash generation of a technically intricate Internet project after a three-year period of capital and labor intensive market research and product development. The tasks that we handled included the introduction of new KPIs, cost-cutting measures and HR issues.

 

Plan B Preparation

We coordinated the preparation of Plan B for a startup at the first revenue stage. This plan implied
fast track to break-even, using a limited amount of incremental shareholder financing, while focusing on key value and revenue drivers and the elimination of operational inefficiencies.