Client
An IT service management solution company
When our client was facing liquidity issues defaulted on loan covenants, they turned to RGP to support them with lender-required cash flow reporting.
In the past, our client had relied on other third parties to prepare 13-week cash flow forecasts. But when those engagements ended, the process was never transferred back to them, leaving them without the expertise to satisfy current lender requirements.
What We Did
- Created a 13-week cash flow forecasting model and streamlined weekly process for preparing the forecast and variance reports.
- Used Accounts Receivable historical days-to-collect to predict timing for future collections.
- Included special analysis for collections on yearly licenses.
- Accounted for payment plans negotiated with certain vendors.
- Trained our client to take over the weekly preparation process and reviewed and submitted final versions to the lenders on a weekly basis.
Impact
- Prevented further lender actions by satisfying requirements for cash flow forecasts.
- Enabled our client to refinance their debt by focusing on improvements in business operations and cash flow.
- Enabled our client to take on preparation of 13-week cash flow forecasts and avoid the expense of engaging third parties for such support.
Share This
Client
An IT service management solution company
Human Insights
Insights from our global thought leaders.