FINANCE PERFORMANCE MANAGEMENT/TREASURY SOLUTIONS/ ACQUISITION SUPPORT

$15 Million Advertising Agency

12|21 Financial Consulting Group was engaged to help improve smoothness and efficiency of monthly financial statement closing process, as well as improve reporting and monitoring of projects to improve gross profit margins and increase Agency Gross Income. The Agency’s monthly close process was cut down from a range of twenty-five to twenty-eight days after the month-end, to eighteen to twenty days to produce financial statements. Gross margins improved three to six points over a five-year period. With this came the development of a detailed project forecast model that allowed 12|21 FCG to discuss project margins in various components at conclusion of each project, allowing management to have a tool to have continuous improvement when bidding new projects, and deciding on freelancer and production vendor needs. Additionally, a cash-flow model was created allowing for the COO and 12|21 FCG to project all cash receipts and disbursements on a weekly basis, forecasting out for a period of five weeks. This reporting allowed 12|21 FCG to make decisions on payables and line of credit draws or pay-downs to the COO. This accurate cash flow forecasting allowed the agency to have a tool to better adjust its spending and strategic initiatives on the move and to make adjustments with the agency on the move.

The firm negotiated a significant term-note with the Agency’s banking institution to allow it to up-grade its main computer servers and to do capital improvements to the office facility also owned by the shareholders. Additionally 12|21 FCG negotiated a renewal on the line of credit to double its size during a time of growth. Both of these finance deals allowed the shareholders to continue to have the cash flow flexibility they needed to continue to run the day-to-day business according to their current business strategy.

Working in the outsource CFO role, 12|21 FCG led a successful acquisition of a strategic SEO business that allowed the Agency to add a competency that it had been outsourcing, allowing for the firm to offer clients a full-service approach to their marketing needs. 12|21 FCG negotiated a payout deal with the acquired company’s ownership that allowed for a small upfront payout with terms on the balance that allowed the company to not require any bank debt financing.

12|21 Financial Consulting Group continues on-going weekly outsource CFO work with the Agency.