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.
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Client
An IT service management solution company
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