Restaurants & Hospitality
MERU CASE STUDY
Implemented $8M of EBITDA improvements for a global adventure racing organizer
- Leading global obstacle course racing (“OCR”) events organizer
- Declining revenue after hypergrowth in early years ($100M revenue in 3rd year of existence)
- The company faced EBITDA and liquidity pressure due to (i) lower turnout at events driven by shifts in the OCR market including increased competition, (ii) higher customer acquisition costs due to maturity of social media ad channels, and (iii) excess SG&A costs due to bloated overhead structure built for growth
- The fixed cost structure was not aligned with the new and downsized size of the operations (cut ~12 events globally from 2018 to 2019)
- Serving as the interim Chief Financial Officer
- Managed liquidity and developed a comprehensive 26-week cash flow model
- Led negotiations with lenders to secure additional financing
- Identified and implemented performance improvement initiatives including organizational chart redesign
- Spearheaded the development of a new budgeting process and tools; led the development of a revised 2019 budget
- Developed a monthly reporting package to summarize performance and KPIs of the business
Implemented performance improvement initiatives resulting in ~$8 million year-over-year EBITDA improvement.
Provided transparency into the liquidity profile of the business through replacing the company’s cash flow model with a driver-based 26-week cash flow model yielding results within ~10% of actuals weekly.
Re-built trust with critical vendors through negotiating and delivering on payment plans to pay back 6+ months of open invoices.