CFO for Startup of a Greenfield Metal Manufacturing Company
An Inglewood principal served as CFO for a startup company seeking to finance and build a $200 million green field metal manufacturing company. He participated in all conceptual and financial facets of the project development, from inception through financial closing and on to construction.
Initial services included demonstrating the viability of the project concept with the initial capital and operating budgets as well as market studies indicating the need for the project. He further supported the project concept by developing financial modeling and analysis to evidence the financial feasibility and by writing the offering document presenting the project to potential investors and financing sources.
The Inglewood principal helped select a site advisor and worked with that site advisor and the company throughout the site selection evaluating numerous sites in multiple states. This required building relationships with a variety of federal, state, and county agencies. The site and financing searches required considering a large number of project iterations to determine if various interests could be accommodated, and seeking non-traditional financing sources such as potential customers, suppliers and government and community support.
Ultimately, the company attracted equity from multinational sources, plus senior project financing from a European bank and local sources.
In addition to arranging and negotiating the financing, the Inglewood principal's involvement included:
- input into the major equipment and structural supply contracts;
- preparation of project execution plan detailing schedule of construction and non-construction activities;
- development of staffing plan;
- coordination of hiring activities;
- establishment of benefits plans and identification of appropriate plan providers;
- oversight of project spending and analysis of progress compared to budget;
- communication of results to external and internal stakeholders;
- working with controller and auditors to put in place appropriate business processes enabling superior financial controls and reporting capabilities; and
- participation on multi-functional team that specified, then identified and implemented an appropriate computer software system to support financial and non-financial reporting and controls.
The project broke ground in early 2014 and is headed for a successful startup in 2015.