The Challenge: As a result of continue growth, a solar energy company contracted with B&A to assist them in reviewing and improving their financial reporting. They focused in residential and commercial solar installations, concentrating mostly on growing the residential market.

 

The B&A Difference: When working with clients, our philosophy is to position the company as if it were for sale. This approach requires certain financial and operational disciplines that are not only best business practices, but also provide owners with the same analysis that potential buyers use to value the company.

 

The Process: Working closely with the Controller, we initiated proper accrual based accounting procedures, reviewed and enhanced processes and procedures, created a budget, calculated margins by market, and generated alternative growth models. This process highlighted that commercial market growth would yield greater revenue with less capital investment than residential market growth. At the time, the average commercial project invoiced for $50,000.

 

Delivering Results: With this data, the company transitioned its marketing and business development thrust toward the commercial market. Within nine months, the company was quoting commercial projects valued over $500,000 and growing profitably. Coincidentally, the company was approached to be acquired by a larger solar energy company. Working in conjunction with the lawyer and accountant, B&A prepared financial projections and advised the owners throughout the negotiating and closing process. Having already laid the financial and operational foundations, the due diligence process only took one month. Following B&A's recommendation to obtain an independent valuation, the purchase price increased by approximately 50% over the original offer price!

 

The Challenge: Due to increased growth, a professional services firm needed to expand into larger offices. Presently occupying 12,000 square feet of office space, and based on five-year growth projections, the company was looking to secure approximately 16,000 – 18,000 square feet of space. 

 

Delivering Results: The company was growing and financially secure, and therefore, a desirable tenant. Many properties were offering attractive rates and terms. During the evaluation process, B&A recognized the company owner could leverage his financial return by also serving as the landlord to his own company. Expanding the search to include properties to buy or build, a 3 acre property with a 19,600 square foot pad already in place was deemed the best option. The existing owner of the property, a commercial builder, erected the “shell” based on their original rendition. B&A championed and coordinated with the architects and contractors to complete the interior of the building.

 

The B&A Difference:  B&A looks for wealth maximization opportunities for their clients. Due to the company’s financial and operational stability, from a landlord’s perspective, it was an ideal tenant. Seizing upon this opportunity, B&A leveraged the company’s rent expense to provide rental income for the owner and establish of profitable real estate investment. 

 

The Challenge: A growing professional services company had hit a hurdle. For the first few years of operating, the workflow was manageable and morale was high. Clients love the firm and due to the ongoing nature of the service, many had developed camaraderie with the employees. However, as growth continued and employees began to find the workload excessive, performance faltered and morale began to suffer. The added growth also demanded more organizational and process related skills from the owner, whose natural strengths were sales and marketing related.

 

The B&A Difference: Rather than selling a standard product, package, or program, B&A's primary focus is the meet the unique needs of a client, given their past experiences, their present circumstances, resources, constraints, and their future goals. Every client's situation is different, and packaged solutions seldom work.  B&A, working directly with company leaders, implements customized action plans that move companies forward.

 

The Process: Utilizing their Diagnostic Assessment Survey tool, B&A interviewed the team to form a current snapshot of the business as it relates to company mission, values and goals, financial discipline, corporate culture, team cohesiveness, process documentation, operational efficiency, and accountability. The findings indicated that the company needed to transition from a sole proprietor model to a management team model.

 

Delivering Results: B&A designed a customized business plan to elevate the senior level employees to managers, who in turn, would oversee and develop the new employees needed to support the continued growth. Additional training was provided, as needed, to those who accepted the manager position. Some employees preferred to remain in their present position, and some were deemed not ready to manage. A Chief Operating Officer was added to compliment the owner's skills. Going a step further, workflow processes were also evaluated to identify areas where critical process knowledge and experience rested in only one individual. Appropriate steps were taken to reduce and/or eliminate this business risk. With a management team in place, the company was able to support additional growth, resulting in improved morale and performance. Within six years of the initial assessment, the company grew 400%, expanded to its own building, and the owner sold to a publicly traded company as part of his retirement strategy.