Company Profile
Hospitality company with approximately $16 million in revenues.
Challenge
The previous CFO recommended closing one of the business units because he thought it was losing money. So, the owners were preparing to close it based upon his recommendation.
Approach & Result
Upon closer analysis, I determined that the business unit was, in fact, earning about $150,000 per year. I recommended keeping this location open, thus keeping this cash flow intact. Over my five years with this company, this resulted in $750,000 in cash that would have been lost had they closed this location. This cash was used to help reduce debt and thus, increased the value of the company when it sold.
“Gary Aldridge served as our CFO for 5 years. During that time, he trained our managers to better understand the financial statements and expense control. He increased the value of our company through refinancing our debt and implemented a simple to understand incentive-based compensation programs that were a win-win for managers and owners. We were very pleased with his performance and highly recommend him.”
-Bill L and Al R, business owners