Clovis Group

Clovis LogoClovis Group Relies on Capital CFO for Operational and Financial Expertise Leading to Successful Acquisition

Two partners and a business idea that took off.  That’s the basic story behind Clovis, a staffing firm that served the Washington, DC region providing information technology, finance/accounting and sales resources.  By the time of the company’s successful sale, Clovis had growth seven-fold and significantly diversified its client base.

Along the way, Clovis recognized the need to “grow smart”—which meant investing in finance, accounting and operations expertise that would help them deal with a range of complex and time-consuming challenges and decisions.  In short, Clovis understood that its needs outstripped the capabilities of its existing team; it had to become more strategic and “big picture” in its focus.

That’s when Clovis turned to Gary Guttman of Capital CFO Services.

“In addition to helping us grow out of our startup mode in the financial sense, Gary led us to think strategically about how we were doing business in a number of areas—such as our strategic focus and our ability to prioritize our resources.  As a result, we were able to increase the value of our company dramatically.”

Greg Diamond
President and Co-Founder
Clovis Group

Gary helped the Clovis executive team work through a variety of the typical operational challenges faced by growing companies, which go beyond just the accounting and financial management area.  Gary’s contributions spanned corporate strategy, sales, human resources, legal and information technology and specifically included:

  • Determining how many resources Clovis should assign to each of its business areas.

  • Strategizing on which market segments would create the most long-term value for the company.

  • Assessing and implementing the type of sales commission plans that would achieve the goals of incenting profitable growth.

Capital CFO’s supported Clovis throughout the following significant milestones:

  • Grew in annual revenues from $5M in 2006 to $36M in 2011.

  • Sold the company in 2011.

  • Increased profitability.

  • Managed the diversification of the customer base from one client’s accounting for 65% of revenue in 2006 to no customer accounting for more than 20% of revenue in 2011.

  • Received Inc. Magazine’s “Inc. 500” honors for three consecutive years.

Clovis Group’s work with Capital CFO Services covered a variety of areas:

  • Developed commission plans

  • Converted the financial statements from cash basis to accrual basis

  • Hired and trained accounting, human resource, office administration and other back office personnel.

  • Trained the owners how to read and understand financial statements.

  • Worked with the owners to segregate their responsibilities in order to take advantage of their skill sets.

  • Developed annual budgets.

  • Assisted with client and vendor contract negotiations.

  • Worked with the landlord during office renovation and expansion.

  • Coordinated the flow of information to investment bankers, lawyers and potential acquirers and educated these individuals about the business.

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