Financial Management and Problem Resolution for Growing Companies

Fulcrum Financial Management llc Reducing Risk—Improving Profit

Fulcrum Financial Management LLC

Presents

Corporate Canaries

• A century ago, coal mine operators located caged canaries throughout their mines. If the canaries went silent and dropped from their perches, coal miners were warned of the presence of poisonous gases and escaped before fatality.

• In similar manner, a company operator must have his or her own canaries- that is key reporting mechanisms and metrics- to determine the health of the company and to discern the warning signs early enough to save the company from distress.

Are Your Canaries Alive and Well?

• Operating costs are greater than they should be.• Cash is tight.• Your financing options are limited and expensive.• Risks are high because you are not getting the

information you need, when you need it, to run your business.

• Your management team is reacting to changes in the market, not proactively initiating change.

• You are working harder than ever but not seeing the improvements you want in your company.

Is There a Performance Gap in Your Finance Function?

• Lean financial staff (understaffed, overstressed or under-qualified)

• Little or no monthly reporting, providing primarily historical financials

• Budgets are busted and expenses are too high• Cash flow is uncertain with no forward-looking

projections• No grasp of key operating metrics • Little or no risk analysis and planning

What Fulcrum Professionals Can Do for You

• Assess quickly the strategic and financial problems that are holding your company back from achieving your goals.

• Develop financial solutions specific to your business to address these problems- solutions that reduce risks, control costs, and improve profits and cash flow.

• Take a leading role in the execution of these solutions.Jay Katz, CEO of Rockpointe Corporation: “[Bill Fisher] …helped us to emerge successfully, profitably…”

• Provide objective advice and counsel to you.Jim Melhorn, President & CEO of EMA: “commend Bill

Fisher for…his wise counsel to the senior management group.”• Function as the CFO or in support of your CFO or financial

management team on a project, part-time or interim basis.

How Have Clients Used Our Services to Solve Their Problems?• Restructuring and Revitalizing the Office of the CFO

Episcopal Ministries to the Aging, an owner-operator of continuing care retirement communities, had a seriously demoralized and dysfunctional Finance Department, resulting from poor leadership by its former CFO.

Bill Fisher served as the full-time, interim CFO while a new CFO was recruited. He reorganized the Finance Department into teams with the authority to develop and execute plans to remove bottle-necks in processes.

The results were improved efficiencies within the department and enhanced respect for the Finance Department throughout the organization.

Jim Melhorn, President and CEO: “[Bill] brought order to a Finance Department in crisis.”

How Have Clients Used Our Services to Solve Their Problems?

• Cleaning the Windshield Rockpointe, a medical education communications company, had relied

solely on monthly financial statements to measure its performance and had no formal planning and budgeting processes in place. Its CEO saw the need for a CFO, but due its modest size, believed the company could not support a full-time position.

Bill Fisher served as CFO on a 2-day a week basis. He identified the key value drivers in Rockpointe’s business and developed a series of reports and forecasts to uncover trends in the company’s business. A formal strategic planning and budgeting process was also put into action.

As a result, the company was able to identify a potentially serious cash shortfall some months in advance and took corrective actions to pass successfully through the crisis. The strategic planning process enabled new and more promising business lines to be identified and pursued.

Jay Katz, CEO: “[Bill] was critical in preventing us from slipping back into shoot from the hip entrepreneurial habits.”

How Have Clients Used Our Services to Solve Their Problems?• Due Diligence Support for Strategic Transactions

Edverify, a young internet-based company, was contemplating a new equity raise but first wanted to have its business model and plan analyzed and strengthened.

On a one-week project basis, we interviewed management, analyzed operating results, and reviewed the alignment of the company’s business model with its business plan.

As a result of our analyses and critique, the company undertook a repositioning and repricing of its services, as well as a reshuffling of its management team.

How Have Clients Used Our Services to Solve Their Problems?• Mentoring and Development of Future Financial Leaders

Colliers Pinkard, a major regional property management and leasing company, lost through resignation a divisional CFO, but rather than replacing him with a new hire, wanted to develop the two young controllers in that division into co-CFO’s.

On a project basis of several months, we worked with these controllers in analyzing financial procedures and processes in the division and in identifying where improvements could be made and efficiencies achieved.

As a result, a new financial operations manual was developed with the controllers, with each process diagrammed to facilitate uniformity and continuity. In addition, personnel were reshuffled and one-and-one half positions eliminated. At the end of our engagement, the two controllers were sharing the management responsibility for the Finance Department.

Fulcrum Professionals Take the Lead• Strategic and Financial Planning• Mergers, Acquisitions, Joint Ventures, and Strategic Alliances• Debt and Equity Financings to Lenders and Investor• Shareholders’ and Directors’ Relations• Banking Relationships• Annual Budgets and Cash Flow Forecasts for Operations and Capital

Expenditures• Financial and Operational Reports, Analyses and Performance

Measurements• Reorganization of Accounting Departments• Cash Management• Short-term and Other Investments• Accounts Receivable Collections and Accounts Payable

Disbursements

Purchasing Activities • Risk Management and Insurance

Fulcrum Financial Management llc

Contact Information:

William A. Fisher, III(410) 598-4893

bill.fisher@FulcrumFM.comwww.FulcrumFm.com

Fulcrum Financial Management LLC Reducing Risk—Improving Profit