CFO Services Case Study
Consortium Networks
“Having Emmett join our team as our CFO was one of the best strategic and operational decisions we made and I don’t believe we would have been as successful without him.”
DELIVERING EXCEPTIONAL RESULTS ON BOTH SIDES OF A COMPETITIVE M&A PROCESS
A successful exit for the owners followed by a smooth transition of CEOs and new Private Equity ownership
OVERVIEW
Consortium Networks, a trusted Cyber Concierge, helps clients tackle complex cybersecurity issues. Founded to revolutionize the field, Consortium connects and educates the community on cybersecurity risks, technology, and networking. Their innovative approach positioned them for significant growth and new opportunities.
Consortium Networks is a cybersecurity risk, technology, and networking organization on a joint mission to connect and educate the community.
GOALS
Consortium Networks aimed to prepare its financial data to be market-ready and attractive to potential buyers. The owners sought to enhance their strategic and financial operations bandwidth and expertise to ensure a successful M&A process. Specific goals included:
- Ensuring readiness M&A process
- Developing new Financial Models, Reporting, Quality of Earnings, KPI analysis
- Assistance with Transaction Negotiation
- Providing C-level support during transition to new Private Equity ownership and onboarding a new CEO
- Increasing the robustness of financial operations
Achieving these goals would position Consortium Networks for a successful exit and transition to private equity ownership and sustained growth.
SOLUTION
TechCXO provided comprehensive CFO services to Consortium Networks, ensuring a successful exit in a highly competitive M&A process. Services included Quality of Earnings & Due Diligence Support, Transaction Negotiation, and the implementation of Strategic Finance Best Practices. TechCXO’s support encompassed KPI development, Financial Modeling, Crafting a Year 1 budget & 5-year Strategic plan, Completing the first GAAP audit, Establishing an Internal Finance Function, all while Facilitating a smooth CEO transition.
OUTCOME
M/C Partners, a private equity firm focused on small and mid-size businesses in the Digital Infrastructure and Technology Services sectors, acquired Consortium Networks. TechCXO’s strategic and operational support enabled Consortium Networks to develop robust finance and accounting systems, processes, and infrastructure. Their M&A Transaction Support ensured that the sale price accurately reflected Consortium Networks’ true value. Six months following the acquisition by M/C, TechCXO facilitated a transition to a full-time CFO.
“[appointing Emmett] as our CFO was one of the best strategic and operational decisions we made… I don’t believe we would have been as successful without him.”
“Emmett was instrumental in my success as I transitioned into the company as CEO…it never felt like a fractional engagement; Emmett was an integral part of the team.”
