The Personal Board of Director - The CEO's "Trusted Advisor"

By Keith McAslan, Partner, CxO To Go

Introduction:

Many CEO’s and small/medium business owners do not have a Board of Advisors, or Board of Directors to help hold them accountable and direct the business towards the ultimate goal of monetization with an exit strategy. If the business cannot afford a full time CFO, a part time CFO with a broad based business experience can be that “Trusted Advisor”. Ideally the CFO who is the “Trusted Advisor” not only has financial experience, but operating experience as well to provide global insight to issues facing the business.

The Value Add:

The CFO who becomes the “Trusted Advisory” to the CEO delivers results-driven, professional counsel and solutions for complex situations. The key benefits for the CEO and the organization having a “Trusted Advisor” include:

· The CEO can think and act like an entrepreneur, focusing on business growth and customers.

· A “Trusted Advisor” who is an accomplished financial/operational executive quickly understands the key issues and can support the CEO, providing alternatives and recommendations to complex problems as part of the decision making process.

· Allows the CEO to think strategically, but provides the additional bandwidth to implement effective tactics.

· Drives the CEO and the business to plan for the long term building annual business plans and three year strategic plans.

· Provides a higher level of analytical support relating the results from operations to the financial statements and explains the variances to budget and the prior year.

· Helps identify key company initiatives on which to focus and in what priority sequence.

· Prepares the CEO and the business for an ultimate exit strategy to monetize the investment

· Provides an external challenge to the CEO’s decision-making process, the Trusted Advisor doesn’t tell the CEO what they want to hear, but tells them what they need to hear.

· Ensures all perspectives are considered in the decision making process to arrive at the best decision for the business.

· Execute decisions – most businesses in crisis have the common problem of either not making decision on a timely basis or making the wrong decisions.

· Develop and implement operational plans based on the strategy developed in the business plan

· Uses prior broad based industry experience to ensure the marketing, sales, engineering, manufacturing, logistics and human resources are executing according to best practices.

· Provides treasury and capital market support to secure funding alternatives and interfaces with the lenders regarding the performance of the business

· The “Trusted Advisor” becomes the coach, mentor and key confidant of the CEO and the one person the CEO relies on the most for unbiased, straightforward communication.

The Key Benefits of the “Trusted Advisor”

• Sustainability - Business answers from an experienced “Trusted Advisor” provides unbiased, on-target, and unencumbered feedback.
• Accountability - The more accountability the CEO and the business have the better everyone will perform. Without accountability, goals will be missed instead of made. The “Trusted Advisor” provides accountability, measurement, and metrics from the CEO down to ensure goals are more than just wish lists!
• Focus – The CEO gets to focus on the most urgent and important things, so the company produces the results it seeks in its business and strategic plans.
• Trust – The “Trusted Advisor” has developed a relationship of trust with the CEO by demonstrating, credibility, reliability, respect, business acumen and transparency.
• Communication – The CEO and the “Trusted Advisor” communicate frequently and openly about all issues impacting the business, with the “Trusted Advisor” providing a safe sounding board for the CEO.
• Networking – The “Trusted Advisor” typically has a network of business contacts that expands the CEO’s network and provides the business greater reach in the business community.

Conclusion:

CEO’s and owners of small/medium business should have a “Trusted Advisor” with financial and operational experience to supplement their skills and experience. The inclusion of a “Trusted Advisor” to the leadership team enhances the overall capability of the business and is a key component towards the future success of the business.

Keith McAslan is a Partner with CxO To Go a national professional services company headquartered in Denver, Colorado that provides on-demand C-Level expertise and best practices to client companies on a part time, flexible, and affordable basis. Keith is sought after to provide advisory services as the Trusted Advisor to Owners and CEO’s. By utilizing his extensive experience as a successful financial and operational C-level executive, Keith brings a results driven leadership style to complex situations.

McAslan’s expertise includes: financial advisory; management consulting; part time, interim & virtual CFO, COO and CEO; debt and equity financing; turnaround management; acquisition and divestiture advisory. Most recently Keith, was instrumental in the successful sale of Western Forge to Ideal Industries. As the interim CFO with finance and private investment transaction experience, he guided the management team through the complex sale and due diligence process completing the sale from prospective buyer presentation to close within 60 days. Please contact Keith at 303-520-2493,

Western Forge Sale Endorsement

"Keith McAslan joined me as CFO for a distressed hand tools business in desperate need of financial leadership. Keith's experience leading turn-arounds within private equity organizations allowed him to make an immediate impact. Our challenge was to quickly position the company for sale. McAslan was instrumental in dissecting the financial drivers of the business and identifying improvement areas that deliver quick returns. Because of Keith’s effort and expertise we were successful in securing a strategic buyer in record time at an attractive price.

Keith is as comfortable leading teams as he is digging into the details. He is a very approachable, hands-on leader that is able to quickly assess situations and activate corrective action plans. This deal could not have been done in the compressed timeframe without Keith McAslan's leadership." Mark A. Gold - President & CEO Western Forge

Lender Financing One of the Secrets to Improve Success in Funding

By Keith McAslan, Partner, CxO To Go

During these difficult economic times, one constant complaint we hear all the time from small and medium business owners is the difficulty they have in securing debt financing. Clients of CxO To Go have been successful teaming with our professionals to develop a Bank Proposal Package (“BankSell™”). BankSell is not a business plan, rather a comprehensive turnkey package written so bankers and lenders will take action.

Most small business owners work with their bookkeeper or Controller to compile information they think the Lender would want to see. They then schedule an appointment with their Bank Officer to request a loan. CxO To Go professionals lead you through a more professional 3 step process: 1) prepare a Bank Loan Proposal Package that “tells the story” to the Banker describing your businesses; 2) presents the financial information the lender requires; 3) presents your business in the best light - an organization that is professional, has done its homework, and can stand behind their numbers. Typically, businesses that present a comprehensive Bank Loan Proposal Package move up in the review priority sequence, as lender’s have less work to do gathering information. The result is that the loan application is promptly sent to loan committee for review and approval faster.

The typical elements CxO To Go includes in a Bank Proposal Package are:

• Executive Summary (“PowerPuncher™”)
• Business Plan (“PowerPlan™”)
• Personal Financial Statement
• Recent Credit Report with FICO Score
• Management and Ownership Profile
• Financial projections for the current year
• Most recent 3 years tax returns
• List of all assets including appraisals, copy of purchase orders, acquisition price and current net book value. The lenders typically like to see an estimate of orderly liquidation value (“OLV”) and forced liquidation value of the assets (“FLV”)
• Current aging report for accounts receivable and accounts payable
• Organizational Documents
• Information related to other loans, leases, etc.
• Website – URL link and high resolution color copy of the Home Page and About Us page
• Source and Use of Funds Statement for the proposed loan
• Application from the lender

If your business is seeking debt or lease financing, we recommend you contact CxO To Go at 303-520-2493 or kmcaslan@CxOToGo.com to give your business an advantage over the competition with a professional Bank Proposal Package (“BankSell™”). Additionally by leveraging our BizKing™ Advisory Service we will accompany you to your meetings with the lenders giving you an unparalleled advantage.

Guided Sale of Manufacturer in 60 Days

Keith McAslan, Managing Partner of McAslan Consulting, was instrumental in the successful sale of Western Forge to Ideal Industries. As the interim CFO, McAslan having both CFO and private investment transaction experience, guided the management team through the sale and due diligence process completing the sale from prospective buyer presentation to close within 60 days.

Ideal Industries Inc. agreed to buy the Colorado Springs-based Western Forge from MW Universal Inc. just two years after MW paid $40 million for the hand tool manufacturer. Sycamore, Ill.-based Ideal was founded in 1916 and has grown into an international manufacturer and distributor of connectors, testing equipment, tools and supplies mostly for the electrical, communications and data transmission industries. The privately held company employs 1,200 worldwide. Western Forge makes screwdrivers, pliers, punches and other hand tools for a variety of major retailers including Sears and Home Depot. The company was founded in 1965 in Defiance, Ohio, and moved a year later to Colorado Springs.