Case Studies

The partners in a Los Angeles-based investment advisory firm and investment bank with over $7 billion in assets under management decided to sell the business. While the partners, with their deep M&A experience, understood the importance of well-prepared financial statements, they also knew that their company lacked audited financial statements.

The firm frequently referred clients with similar accounting problems to Buxbaum HCS, so they knew we would resolve their issues quickly so they could go to market.

Buxbaum Solutions 

We pursued a two-phase engagement:

• Phase 1: Senior and junior Buxbaum HCS finance professionals jointly worked to prepare the client for its first financial audit.
• Phase 2: Our senior resource, an experienced M&A CFO, remained with the company post-audit to assist with buyer due diligence and closing, and again post-close to assist with integration.

Value Creation

Over a few weeks, our team of finance professionals successfully prepared the firm’s books and financial records for its first financial audit. Our CFO was an instrumental member of the M&A team, contributing to the successful sale for $125 million. The buyer was so impressed with our CFO that she was asked to remain during the post-acquisition integration phase, then was offered a permanent position as CFO responsible for finance and accounting for the acquirer and its U.S. subsidiaries.

Warner Pacific, a privately-owned general insurance agency was preparing for a financial audit and needed an extra set of expert hands. An advisor to the agency suggested they retain a Buxbaum HCS interim resource. Once the audit was complete, our resource stayed with the agency to select, design, test and launch a new enterprise resource planning (ERP) system.

Buxbaum Solutions

• Helped the company’s accounting department prepare for a financial audit.
• Worked with the company and value-added reseller, spearheading the process of developing an ERP system to meet the company’s objectives and business requirements.
• Developed the chart of accounts structure, customer and vendor numbering conventions, revenue and cost project tracking, as well as other key system data elements.
• Designed and built a full suite of relevant financial reports.
• Facilitated the accurate conversion of historical transaction-level data from the legacy system to the new system.
• Developed user manuals for effective, efficient staff training.

Value Creation

ERP conversions are time-consuming and require a high level of expertise. With Buxbaum HCS on board, Warner Pacific achieved its goal of substantially upgrading its systems without compromising ongoing operations. The new ERP system substantially improved efficiencies by eliminating manual processes and reduced costs paid to CPAs. Additionally, the ERP system provides management with access to critical information through dashboards and reports.

A privately-held consumer products manufacturer founded in 1979 was not profitable and its financial reporting systems were substandard and lacked transparency.

At the recommendation of the company’s investment banker, the company’s owners retained Buxbaum HCS to upgrade its financial reporting. Our Interim CFO, specializing in the manufacturing and distribution industries, began working immediately.

Buxbaum Solutions

• Identified deficiencies in financial and management reporting and operations.
• Implemented substantial improvements to all aspects of financial and management reporting, improving efficiency, accuracy, transparency and timeliness.

Upon learning more about the company’s issues from our CFO, we recommended outside advisors to help the company’s owners define and implement a profitable strategic direction for the business. As a result:

• The Advisory Board identified significant operating deficiencies, leading to the CEO’s resignation.
• Within 48 hours of the CEO’s resignation, we identified two highly qualified interim CEO candidates and one was hired.
• Our interim CEO and CFO worked with the company’s strategic advisor to diagnose and correct numerous operational and corporate governance issues.

Value Creation

Buxbaum HCS contributed substantially to the company’s turnaround, increasing its total value from essentially zero to over $12 million in less than two years. The company eventually converted our interim CEO and interim CFO to full-time employees.

One of California’s largest collectors of waste oil and the state’s sole operator of a re-refinery was in bankruptcy and preparing for a sale. The company’s debtors were unsatisfied with its CFO’s performance, as the recaords and systems were substandard.

The debtors demanded that the company retain a financial advisory firm to assist with the bankruptcy and subsequent sale process, and referred management to Buxbaum HCS. Our Interim CFO brought immediate relief to the debtors’ concerns.

Buxbaum Solutions

Working closely with the company’s management and CFO, with whom we established strong relationships, we:

• Successfully navigated multiple constituents (some adversarial to one another) and obtained accurate information for the debtors.
• Built cash-flow projections and completed court-required filings.
• Assisted with daily operations and potential buyer due diligence.

Value Creation

Buxbaum HCS efficiently got the company on track for a successful exit from bankruptcy in the U.S. Bankruptcy Court and a $60 million sale to the leading provider of environmental, energy and industrial services in North America.