Background
- A VC-backed company burning $1 million/month with only 2 month cash on-hand after having raised a $5 million financing 4 months earlier
- Investors engaged Kirchner to assess the company and subsequently committed $5 million additional financing to implement Kirchner’s recommended turnaround strategy
Mandate
- Kirchner Group team member installed as interim CEO
Activity
- Revenue maintained while monthly burn reduced 70% to $300K/mth
- Gross margins grew 9% and the bottom line improved by $10 million year-on-year
- A major threatening lawsuit settled
Results
- Within 11 months, AIM exchange listing with restructuring financing participants achieving an 3.5x return on capital at IPO date
