PE-CXO’s Success Stories cast a spotlight on private equity-backed operators and the tools and tactics they leverage to create real value. In each entry, a world-class executive details a practical solution to a critical business issue. To be featured, contact mallory.stokker@pe-cxo.com with the subject line “Success Story.”
Executive: Former CFO specializing in private equity-backed CPG businesses. Current finance operator at a leading middle-market PE firm.
Challenge: Driving transformation in a PE-backed CPG company whose fixation with top-line growth depressed earnings and limited liquidity.
Solution: An analysis model to assess the profitability of prospective or existing customers/channels and increased controls around discounting and promotional spending.
I stepped in as CFO for a private equity portfolio company in the specialty food space.
The pivotal challenge facing this business became quickly apparent. We needed to transform a company focused almost entirely on increasing its top-line growth into an organization built to deliver profitable, sustainable growth.
I was called to an offsite strategic planning session two weeks before officially assuming the role. The evening before, the CEO had emphasized to the executive team our need to better understand the difference between gross and net revenue.
At the time, we were only measuring gross price. EBITDA was negative, and the company was burning cash quickly. The strategy in place led employees to say, “it’s okay if...