Recent CFO Case Studies
Integrated Healthcare Management
As CFO of a private-equity owned Integrated Healthcare Management company, ClearRidge CFO’s Director led initiatives to improve reporting and financial management, actively participated in Board meetings, and implemented new accounting methodologies and systems. Our Director was responsible for financial planning, budgeting, cash flow, investment priorities, and policy matters. She established and monitored inter-departmental goals, objectives, policies, and operating procedures, conducted financial analysis for contract negotiations, and contributed to product pricing and investment decisions. She also led Human Resources and the implementation of a new payroll and HR system company-wide. Our Director completed acquisition due diligence, forecasting, valuation, ROI analysis and the subsequent integration of acquisitions.
– completed 5 acquisitions in a three-year period, while revenues grew more than 250% prior to a subsequent sale to a strategic acquirer.
A manufacturer was sold to a large New York based private equity group. The equity group buyer engaged ClearRidge to provide CFO Services; to provide financial leadership to all areas of the business, including budget projection, analysis, monitoring, and special capital projects. We were also tasked to direct financial reporting in the preparation of all financial reports, including income statements, balance sheets, shareholder reports and tax returns to satisfy the legal, strategic and operational needs of the organization. We directed the budgeting process by developing and implementing appropriate financial systems that allowed accurate budgeting, analysis and decision-making. We improved the accuracy, quality and reliability of financial forecasts. We participated in and contributed to the strategic planning process, collaborating with Company leaders to pinpoint opportunities for efficiency and cost savings, performed statistical studies of economic trends to project Company prospects for future growth in sales and market share, and lead opportunities for acquisition or expansion.
A manufacturer was unable to produce accurate and timely financial reports to their outside equity investors, so ClearRidge was engaged to bridge the CFO responsibilities until a new CFO could be hired and trained. ClearRidge CFO’s Director uncovered failures to follow accepted accounting principles and practices. The company also lacked controls in processes within their inventory system, which led to inaccurate costing of the product. She supervised and retrained the in-house accounting staff to implement accepted accounting principles, change cost accounting and inventory processes, and re-state historical financial reports. She identified the changes and new processes needed to cure the issues moving forward, as well as ultimately training and transitioning the company to a replacement in-house CFO.
Food Processing Company
After their CFO resigned, a large food processing company noticed a $2 Million discrepancy in inventory reporting, but could not account for the misstatement. ClearRidge CFO’s Director was tasked with replacing their CFO and uncovering the cause of the issue. Undetected by their outside audit firm, she discovered how the former CFO had been intentionally misstating financial reports, falsifying adjusting entries from the company’s inventory accountant; over-reporting the value of inventory and under reporting COGS. Our Director disclosed her findings to our client and their lender, which subsequently triggered the company breaching their loan covenants. She continued to advise the company through their transition to a new lender (sourced by ClearRidge) and pursue new financial controls until such time that the company had completed their refinancing and a new CFO was retained and trained.
A national engineering services company had consistently grown year-over-year and was seeking an equity partner to support their additional growth objectives. However, the existing CFO was struggling to reconcile intercompany transactions between different divisions, failing to produce accurate consolidated financials and implement adequate financial controls. ClearRidge CFO’s Director was engaged as their outsourced CFO to identify the breakdown in internal accounting processes between different software systems, fix historical financial reporting issues, bring financial reporting in line with accepted accounting principles and implement new financial controls, with sophisticated and detailed reporting. Her work ultimately allowed for a successful recapitalization with a large public company.
An underperforming division of a regional aerospace company was divested. The division operated in the procurement and sale of commercial and military aircraft parts worldwide, with one of the largest certified and traceable inventories in the world. ClearRidge was retained to oversee and manage financial functions of the new company and lead relations with outside creditors and banks. Ultimately, the financial turnaround allowed for a successful sale of the business.
A convention center and arena was the subject of a bank deed in lieu of foreclosure, which led to independent management of the facility. ClearRidge CFO’s Director was hired to review accounting procedures and processes, and uncovered misstatements and inaccurate record keeping. She advised on the implementation of new financial systems, controls and cash management systems. Due to historical inaccuracies, she also had to oversee the tracing of every deposit and expense over a prior period, then create a new financial reporting model. After overseeing all the necessary changes, she then had to adjust the financial goals and systems to meet the different business strategies and goals of three different ownership groups in two years.
Cost of a ClearRidge CFO?
Hiring an outsourced CFO should cost less than the all-in compensation for an in-house CFO and deliver better results in both short-term financial reporting and long-term strategic results.
Is a ClearRidge CFO right for your business?
If you are interested in learning more about a ClearRidge CFO for your business, we will set up a time to meet with you in person, discuss your needs and determine if there is a good fit for us working with your company.
Recent ClearRidge Transactions
December 6, 2019.
Conroe Concrete (Yancey Ready-Mix) Houston, TX acquired by SRM Concrete, Nashville, TN.
Yancey Ready-Mix, operating in N. Houston, TX has provided services across all phases of the concrete industry and underground utilities for the past fifty years. The Company manufactures and delivers wet batches of concrete to construction contractors, for industrial, commercial and residential projects and is renowned among general contractors for quality and efficiency.
ClearRidge advised the owners of Yancey Ready-Mix on the sale. The buyer, SRM Concrete (www.smyrnareadymix.com) is among the fastest-growing concrete companies in the US, with locations across the Eastern US and expanding south and West, acquiring ten concrete companies in 2018 and exceeding that growth again in 2019.
November 4, 2019.
MAC Systems acquired by Summit Companies, St Paul, MN.
MAC Systems (macsystems.co), serving Oklahoma, Arkansas and Texas and from its two locations in Tulsa and Oklahoma City. MAC Systems was founded in 1989 and designs, installs and maintains fire, security and communication systems for retail and commercial customers. MAC also provides 24-hour monitoring, testing and inspection of these systems.
ClearRidge advised the owners of MAC Systems on the sale. The buyer, Summit Companies, a leading provider of fire life safety services designed to protect buildings, assets and people all across the US.
September 19, 2019.
Spiffy’s sold in Receivership
Spiffy’s multi-location cleaners and laundromats sold in Receivership. ClearRidge was engaged by Bruce Jones, Receiver to sell the business assets of Spiffy’s Cleaners, Laundry World and Laundryland, seven storefront locations in Tulsa, OK, at the direction of Judge Nightingale, Tulsa County District Court.
July 26, 2019.
Sayed Feghali Cardiology Assoc. acquired by Medical Center Cardiovascular Association at Texas Children’s’ Hospital, Houston, TX.
Sayed Feghali Cardiology Association (FeghaliCardiology.com), headquartered in Houston, TX, was founded in 1999 by Dr. Sayed Feghali, a world-renowned cardiologist and Principal Cardiac Consultant to the Liver Transplant Program at Baylor St. Luke’s CHI Hospital.
ClearRidge advised the owners of Sayed Feghali Cardiology Association on the sale. The owners of Medical Center Cardiovascular Association acquired the practice and will continue to operate out of Texas Children’s’ Hospital in Houston.
May 15, 2019.
Malone’s CNC Machining acquired by Crosslake, KVCI and CFB.
Malone’s (MalonesCNC.com), headquartered in Grove, Oklahoma, manufactures replacement aircraft parts and assemblies for U.S. military aircraft, manufacturing thousands of components and assemblies, shipping the highest volume of government contracts in the state of Oklahoma, with recurring revenue from approximately 400 active contracts year round.
March 29, 2018.
Fintube, LLC (Fintube) acquired by Rosa & Unis, LLC.
Chapter 11 DIP.
Fintube (www.fintubellc.com), headquartered in Tulsa, Oklahoma, is a world leader in heat transfer technology and is a producer of advanced products that increase the operational efficiencies of boilers, heat exchangers and related products. The Company has a well-known brand name, six decades of experience, and is regarded as the technological leader in all three product divisions.
In this Chapter 11 case, ClearRidge represented Fintube, the Debtor in Possession. The result was a successful sale of Fintube as an operating business to the former President of the Company, Jack Rosa, along with his partner, Joe Unis.
Fintube filed for Chapter 11 Bankruptcy on June 27, 2017. ClearRidge was engaged to analyze the company, propose a reorganization plan and market the assets of the Company for sale, to maximize value for the creditors of the Company.
The Company has four divisions:
i) TEKTube (TEK)
ii) Kentube Finned Products (KFP)
iii) Kentube Engineered Products (KEP);
iv) Aletas y Birlos (AYB)
Case No.: 17-11274 – M in the United States Bankruptcy Court for the Northern District of Oklahoma.
January 09, 2018.
Technology Associates EC Inc. (TAEC) recapitalized by Optimal Investment Group.
TAEC (TAEC.net), headquartered in Carlsbad, California, provides site development, site acquisition, project management, architecture and engineering services for wireless network operators and tower owners. TAEC was recently named as the small business contract manager in the AT&T First Responder Network Authority (FirstNet) award.
“Over the past six years, TAEC has grown into one of the leading wireless services firms on the West Coast, with coverage from California to the Pacific North West,” said Walt Oleski, Chairman of TAEC. “Our new partnership with Optimal Investment Group provides the growth capital required to meet increasing demand for our services due to our growing market share / the roll out of 5G upgrades and the FirstNet award.”
Headquartered in Sherman Oaks, CA, Optimal Investment Group (optimalinvestmentgroup.com) is a private investment firm focused on investing in lower middle market business acquisitions throughout North America.
December 6, 2017.
Gene Smith Dealership acquired by Doug Gray Auto Group.
Gene Smith GM and Chevrolet Dealership (genesmithinc.com) (Gene Smith, Inc.) serves a region in western Oklahoma and the Texas panhandle. The dealerships were founded in 1955 and have been in continuous operation under the Gene Smith brand for the past sixty years.
ClearRidge advised the Smith Family on the sale. Doug Gray Auto Group (douggrayautogroup.com) is a regional chain of dealerships, including Ford, Chevrolet, GMC, Chrysler, Jeep and Dodge.
May 31, 2017.
Arrowhead Precast was acquired by NAPCO Precast.
Arrowhead Precast (arrowheadprecast.com) was founded in 2010 and experienced exceptional growth, expanding to their purpose-built facility on 35 acres in 2014. Arrowhead fabricates precast parking garages with many levels and capacity for 1,000 vehicles or more, precast wall panels, hollow core planks, slab beams, spandrels, stairs, risers, raker beams, L-Beams, FEMA approved safe buildings for schools, double-tees and columns for buildings. Arrowhead is one of only two PCI Certified Plants in Oklahoma.
ClearRidge advised the owners of Arrowhead on the sale. NAPCO Precast (napcosa.com) is one of the largest precast concrete fabricators in the United States and their acquisition of Arrowhead was to expand their reach into the Oklahoma market, as well as leverage the existing growth opportunities of Arrowhead.
December 23, 2015.
Diamond Coach was acquired by B12 Capital Partners.
Diamond Coach (diamondcoach.com) was founded in 1957 and is one of the premium manufacturers of medium sized passenger coaches in the United States, selling through dealerships in most every U.S. state. The Company is centrally located in S.E. Kansas and operates out of their purpose built state-of-the-art 91,000 sq ft fabrication facility.
ClearRidge advised the owners of Diamond Coach on the sale. B12 Capital Partners was chosen as the ideal partner due to their experience working alongside entrepreneurs and founders, their relationships and prior experience in Diamond Coach’s industry and their shared vision for the future growth of the company.
September 8, 2015.
Eastpointe Industries was acquired by Long Trail Holdings.
Eastpointe (www.ep-ind.com) has manufactured structural retro-fit wireless tower components and new towers in Oklahoma for over 18 years. Eastpointe has the distinct capability to fabricate retro-fit components that exactly fit the existing wireless tower, without the need for costly refab work on site. Demand for their products continues to increase every year. Eastpointe’s products are shipped all across the U.S. for the leading U.S. wireless providers and tower owners, including Crown Castle, American Tower, AT&T, Verizon, US Cellular and T-Mobile.
ClearRidge advised the owners of Eastpointe in their search for a partner to help expand the platform they built. Long Trail Holdings (www.longtrailholdings.com) was chosen as the ideal partner due to their experience working alongside entrepreneurs and founders, ability to source key management through their relationships within Eastpointe’s industry and their shared vision for the continued growth of the company.
March 2, 2015.
Bergan has been acquired by Ohio-based Coastal Pet Products, Inc.
Bergan, an Oklahoma pet products company, is headquartered in Monkey Island and is known for its cat toys, soft-sided pet carriers, automotive pet harnesses, seat covers, as well as pet feeding solutions.
Within its product portfolio, Bergan has developed the #1 selling cat toy in the U.S., the Turbo Scratcher® and its derivative line of products. Coastal Pet Products, Inc. was founded in 1968 and has expanded its product line from 50 different SKUs to over 7,500 total finished good SKUs, with over 500 employees and a 376,500 square foot facility. Coastal is the world’s largest pet collar and leash manufacturer.
December 19, 2014.
B+T Group has recapitalized with a $28 Million investment by Gladstone Capital Corporation (Nasdaq:GLAD) and Gladstone Investment Corporation (Nasdaq:GAIN).
B+T Group, headquartered in Tulsa, is a full-service wireless engineering, construction and technical services firm, including Tower Modifications, Structural Analysis, A&E Services, Site Acquisition, DAS/Small Cell Services, Tower Construction. The Company has 170 employees in six regional offices across the United States and is licensed and certified to provide engineering services in all 50 states. The Gladstone Companies are publicly traded investment companies that invest in private debt and equity securities.
November 24, 2014.
Progressive Supply was acquired by DistributionNOW (NYSE:DNOW). The Company was advised by ClearRidge.
Progressive Supply, headquartered in Tulsa, Oklahoma, is a privately held wholesale distributor of steel pipe, weld fittings, flanges, long weld necks, outlets, nipples, forged steel fittings and various pipeline products. The Company serves the pipeline, heat exchanger, air cooled exchanger, turnaround and steel fabrication industries, shipping to customers all across the U.S. DistributionNOW is an industry-leading provider of pipe, valves and valve automation, fittings, mill and industrial supplies, tools, safety products, and artificial lift systems to the upstream, midstream, and downstream & industrial markets.
September 9, 2014.
Bridge Employment Services was acquired by Employee Solutions. The Company was advised by ClearRidge.
Bridge Employment Services, headquartered in Broken Arrow, Oklahoma, is a full service staffing firm providing human resources solutions for larger private manufacturing and industrial companies. Employee Solutions, headquartered in Plano, Texas, is a leading regional provider of customized staffing solutions; a three-time Inc. 5000 recipient and one of the fastest growing staffing companies in the U.S.
November 8, 2013.
Ball Winch Pipeline Services was acquired by L.B. Foster Company (NASDAQ: FSTR). The Company was advised by ClearRidge of Tulsa, Oklahoma.
Ball Winch Pipeline Services, LLC, headquartered in Willis, Texas, applies specialty pipe coatings and provides field services for the oil and gas, mining, water and waste water industries. Ball Winch has developed and continues to maintain a strong presence in custom pipe coating for in-service replacement and new construction. L..B. Foster, headquartered Pittsburgh, PA, supplies transportation, construction, utility, energy, recreation and agriculture markets with the materials necessary to build and maintain their infrastructure.
June 13, 2013.
Hermetic Switch, Inc. (HSI Sensing) acquired Genisco Filter Corporation, a California company. Genisco, headquartered in San Diego, designs and manufactures electromagnetic interference (EMI) filters for military/defense and industrial/commercial markets. ClearRidge is a long-time advisor to HSI Sensing.
HSI Sensing, headquartered in Chickasha, Oklahoma is the innovative leader in the engineering, design, and precision manufacturing of custom reed switch and sensor technology. Founded over 40 years ago, they are the industry experts at solving problems for customers in challenging design applications.
March 5, 2013.
Winston Company (Winston Chemical Water Gardening brands). The Pond Guy Services, Inc. acquired the Winston Chemical Water Gardening brands and assets of Winston Company. Winston Company was advised by ClearRidge.
Winston Company has been producing environmentally friendly chemical products for over 30 years. The Company’s products include pond and lake treatments and industrial water treatments. Sold through leading big box retailers and specialty stores, Winston’s CrystalClear® line of pond and lake maintenance products treat pond water with 100% natural and safe bacteria and enzymes.
January 4, 2013.
First Wave Aerospace. Tulsa-based Aerospace Executives, Tray Siegfried and Jon Werthen acquired First Wave Aerospace, LLC. First Wave Aerospace, LLC was formed to purchase the assets of First Wave Aviation, LLC as a part of the 2011 recapitalization of all First Wave entities.
Originally founded in 1992, First Wave Aerospace’s business operates in the sale and brokerage of commercial and military aircraft parts worldwide, with over 3,000 customers and one of the largest certified and traceable inventories in the world. First Wave serves some of the world’s largest aviation companies, providing inventory investment and supply chain cost savings to jet aircraft operators worldwide.
December 31, 2012.
Thacher Associates. K2 Intelligence, the business investigative and intelligence firm founded by Jules and Jeremy Kroll in New York City, has acquired investigative consulting firm Thacher Associates LLC, also in New York City. Thacher Associates was advised by Managing Directors of ClearRidge, acting in their capacity as registered representatives of Burch & Company, Inc.
In addition to providing due diligence, investigative/audit and loss prevention services to both private and public sector clients, Thacher Associates is recognized as the nation’s leading construction project integrity monitor, having completed high profile projects such as the post 9/11 Ground Zero clean-up, the ongoing rebuilding of the World Trade Center, the construction of the new Yankee Stadium, The East Side Access and the Second Avenue subway lines, and the building of headquarters for such corporate giants as the Bank of America, AOL/Time Warner, I.A.C and The Canadian Imperial Bank of Commerce.
December 31, 2012.
EngATech (SolidWorks business unit). GO Engineer, Inc. acquired the SolidWorks business unit of EngATech. EngATech was advised by Managing Directors of ClearRidge, acting in their capacity as registered representatives of Burch & Company, Inc.
Having sold its SolidWorks 3D CAD Software business, EngATech will now focus resources on the growth of its Objet 3D Printers business. EngATech sells and installs the 3D printers and also provides training and support. 3D Printing is in an early expansion phase and Objet is the world’s leading provider of advanced, inkjet-based 3D printing systems and materials.
December 17, 2012.
First Wave MRO, Inc. Tulsa-based Aerospace Executives, Tray Siegfried and Jon Werthen, acquired substantially all the assets of First Wave MRO and First Wave Interiors. First Wave was advised by ClearRidge.
Founded in 1992, First Wave’s core focus is the composite and bonded structure overhaul of engine nacelle system and thrust reversers. The company has a strong reputation for quality, an exceptional FAA compliance history and aerospace certifications including FAA, EASA, CAAC, DCA Thailand, AS9100 and ISO 9000.
October 29, 2012.
Allied Industrial, Inc. Pipeline Supply & Service acquired substantially all the assets of Allied Industrial Supply. Allied Industrial was advised by ClearRidge.
Founded in Oklahoma in 1978, Allied Industrial Supply is an Oklahoma distributor of commercial and industrial tools, supplies and equipment. The Company serves large corporate customers that provide services to downstream oil and gas companies, providing a superior service and more efficient purchasing process for major construction, turnaround or rehabilitation projects.
September 28, 2012.
TCI Services, Inc. TCI Services (Tank Consultants) was acquired by Team Industrial Services (NYSE:TISI), the largest specialized industrial services company in North America. The Company was advised by Managing Directors of ClearRidge, acting in their capacity as registered representatives of Burch & Company, Inc.
TCI Services performs inspections, engineering, construction and repair services across the U.S. for above ground storage tanks. The Company is headquartered in Tulsa, Oklahoma, with offices in Illinois, Kentucky and Texas. The Company serves refineries, marketing and storage terminals, commodity and chemical processing plants, aviation, pipeline and energy companies.
April 9, 2012.
Prime Hardwoods LTD. Cedar Creek Lumber acquired substantially all the assets of Prime Hardwoods. Prime Hardwoods was advised by ClearRidge.
Founded in Texas in 2006, Prime Hardwoods is a Texas distributor of hardwoods, hardwood specialty products and premium lumber. The Company sells to over 700 independent commercial dealers and industrial customers, ranging from OEM furniture makers and cabinet manufacturers to large track and custom home builders.
December 21, 2011.
First Wave Aviation, LLC. A consortium of Oklahoma Private Investors acquired substantially all the assets of First Wave Aviation. First Wave was advised by ClearRidge.
Founded in Oklahoma in 1992, First Wave Aviation operates in the sale of commercial and military aircraft parts worldwide, with one of the largest certified and traceable inventories in the world. The Company stocks components for most Airbus, Boeing and McDonnell Douglas commercial aircraft, procured from and sold to many of the world’s leading airlines, OEMs and aviation fleets.
December 6, 2011.
Warren & Christian, Inc. Warren & Christian was acquired by the Reservoir Group, an Aberdeen, Scotland company focused on down-hole drilling products and services. The Company was advised by Managing Directors of ClearRidge, acting in their capacity as registered representatives of Burch & Company, Inc.
Warren & Christian is an oil and gas field services company, located near Elk City, Oklahoma, in the heart of the western Oklahoma and Texas panhandle oil and gas region. The Company provides well-logging services to oil and gas drilling companies.
October 26, 2011.
United States Shooting Academy, Inc. (USSA) was sold to a consortium of Oklahoma Private Investors. USSA was advised by ClearRidge.
Founded in Tulsa in 2004, USSA is recognized as one of the leading US providers of firearms training and instruction for military, law enforcement and civilian personnel, as well as host for national and international shooting competitions.
September 1, 2011.
Gladstone Investment Corporation (Nasdaq: GAIN) announced the acquisition of SBS Industries, Inc. of Tulsa, Oklahoma. SBS Industries was advised by ClearRidge.
SBS Industries founded in 1975 and headquartered in Tulsa, Oklahoma, is a manufacturer and value-added distributor of specialty fasteners and threaded screw products.
July 5, 2011.
Insituform Technologies, Inc. (Nasdaq: INSU) announced the acquisition of CRTS, Inc. of Tulsa, Oklahoma. Bruce Jones and Matthew Bristow of ClearRidge were CRTS’ advisor throughout the M&A sale process. CRTS, Inc., is a global leader in pipeline coating services based in Tulsa, Oklahoma.
The purchase price was $24.0 million at closing with CRTS shareholders able to earn up to an additional $15.0 million upon the achievement of certain performance targets over the three-year period ending December 31, 2013. For 2010, CRTS had total revenues of approximately $13.3 million and earnings before interest, taxes and depreciation (“EBITDA”) of approximately $3.8 million. For more information, read full transaction information here.
Blitz U.S.A., a portfolio company of Kinderhook Industries, acquired Reliance Products, L.P. Blitz U.S.A. was advised by ClearRidge.
May 20, 2010.
Cedar Creek announces a recapitalization by Charlesbank Capital Partners, who acquire majority ownership of Cedar Creek, the largest cedar distributor in the United States. ClearRidge was advisor to Cedar Creek.
Considered the nation’s largest cedar distributor, Cedar Creek supplies lumberyards and building supply retailers across a 13-state area. With eight locations in seven states, employing a staff of 400, founder Clark Wiens projected sales of $500 million in 2010, about even to 2009 results.