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A mid-sized portfolio company backed by a private equity firm faced an urgent liquidity crisis after missing payroll—an incident that had not been forecasted. This unexpected event raised alarms about possible revenue leakage and broader operational inefficiencies, particularly troubling with a company sale on the horizon. The PE firm needed clarity on whether the problems stemmed from weaknesses in revenue cycle management. They also sought our guidance on the potential for transitioning to a shared services model to improve financial predictability and operational control.
We led a comprehensive assessment of the client’s revenue cycle management process. Over a concentrated three-week period, we conducted a deep dive into billing, collections and cash application processes, evaluating how current systems, roles and workflows might be contributing to cash flow volatility and missed revenue opportunities.
Our findings informed both immediate interventions and longer-term improvements. We outlined 10 practical, high-impact improvements and delivered a detailed implementation roadmap, staying actively involved for an additional 45 days to ensure execution. Our solution also included recommendations to improve revenue recognition and forecasting accuracy, while positioning the company for a smoother transition to a shared services model.
The client saw rapid stabilization in its revenue operations through the implementation of 10 targeted quick wins, which helped capture missing revenue and improved overall cash collection processes. Our intervention not only reduced the risk of future cash-flow disruptions but also bolstered internal controls to prevent further revenue leakage.
Additionally, our insights provided the PE firm with the confidence and documentation needed to move forward with the company sale. This engagement reinforced our ability to act swiftly and strategically in high-stakes, time-sensitive situations, delivering measurable improvements and long-term value.