Visibility into Multiple Lines of Business

CHALLENGE

A growing real estate company experienced choppy growth with wide fluctuations in financial performance over time.  Planning was very difficult and wild swings in cash flow limited growth and caused great strain on the CEO.

THE FINTREPID SOLUTION

Divisional Reporting

Through a detailed analysis of historical financial information, a revised financial presentation was developed with clear representations of the performance of each line of business.  This allowed Fintrepid and the Company to assess ROI of future investment and growth accordingly. Management determined that one of the lines of business proved to be far less profitable than expected.

Liquidity Reset

Due to deeper analysis of company holdings, it became apparent that the company was further constricted by high leverage and cash tied up in assets.  The recommendation was to sell multiple assets, free up cash flow, and pay down debt.  This provided greater operating freedom for the business as a whole.  Furthermore, an ongoing review of short term and long-term holdings is taking place.