Technology Provider

Company Overview

•  $40 million provider of custom designed data storage services to law firms, proprietary trading firms, financial service firms and other companies with high volume, highly secure data storage needs.

•  The Company experienced very high growth and had tripled its revenues during the previous five years.

•  The Company began providing cloud based solutions and made significant investments in equipment and engineering personnel to grow its operations.

Engagement Overview
•  Fort Dearborn improved profitability and cash flows by:
•  Reducing payroll and related costs by over $1.1 million via rate and headcount reductions
•  Reducing other operating expenses
•  Assisting management in negotiating with vendors that were extended beyond credit limits
•  Assisted management in determining capital expenditures to defer, while managing growth opportunities in cloud based services

•  Prepared monthly financial forecast and weekly cash flow and borrowing base forecast factoring in strategic and tactical operating plans.

•  Prepared analyses of cloud based services, including profitability and capital requirements, to provide existing senior lender confidence in the business model.

•  Negotiated an over-advance with the senior lender while executing the turnaround plan and refinancing efforts.

•  Recommended seeking alternative financing to provide adequate capital to fund the Company’s growth opportunities.
Results
•  Fort Dearborn assisted management with the implementation of the profit improvement plan, allowing the Company to refinance its senior debt with a new lender and gain access to additional capital.