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From Chaos To Clarity: Financial Turnaround for a PE-Backed Portfolio Company

From Chaos To Clarity: Financial Turnaround for a PE-Backed Portfolio Company

Situation

MMG was engaged to lead a financial turnaround for a PE-backed company experiencing severe instability and leadership turnover. The was facing severe financial and operational instability:

  • Rapid cash burn with little visibility into liquidity

  • Executive turnover, including removal of the CFO and CEO

  • Finance team instability — four controllers/assistant controllers in less than two years

  • Fraudulent “Non-GAAP” accounting under prior leadership, resulting in a successful R&W claim

  • Mid-audit with a balance sheet in disarray

  • Reliance on an expensive outside reporting firm, yet leadership still lacked clarity

MMG was engaged to stabilize the finance function, restore credibility, and rebuild internal confidence.

Solutions
1

Cash Flow & Liquidity Control

Established and maintained a weekly cash flow forecast to provide leadership with clear visibility into liquidity and near-term priorities.
2

Audit Completion & Compliance

Finalized the 2023 audit and led the 2024 audit under heightened scrutiny, ensuring all findings were resolved and timelines met.
3

Accelerated Close Process

Learned the month-end close process without guidance and reduced the close timeline from 15–20 days to just 5 within four cycles.
4

Balance Sheet Cleanup & Fraud Correction

Identified and corrected fraudulent and non-GAAP entries through detailed analysis and reconciliation, rebuilding trust in reported results.
5

Debt Restructuring Support

Supported diligence and financial modeling for debt restructuring, completing two audits on extended timelines and improving lender relationships.
6

Transition & Team Development

Assumed monthly reporting from the outside firm, delivered accurate in-house results, and trained a new Controller to maintain performance post-engagement.
Results

  • Reliable, transparent cash forecasting

  • Debt successfully restructured

  • Accurate, timely financial reporting

  • Leadership regained insight into key operational levers

  • Stronger finance team foundation for the next audit cycle

Impact: The company transitioned from chaos and mistrust to financial stability and credibility, empowering leadership to make smarter, faster decisions completing the financial turnaround for this PE-backed company.

5 Days

Month End Close Process
(Down From 20 Days)

Reliable

Cash Forecast

Acquisition On-boarding and Exit SupportConsulting ServicesFractional AccountingInterim CFO / Controller / FP&AB2B Services
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