Company Overview:
The company, once one of the largest online and mobile marketplace for chauffeured transportation had sales that exceeded $30M annually. To facilitate expansion and release new product line targeted to business travelers the company took on significant amounts of debt as well as secured $15 million in total equity funding over several years.

Situation: Waste and abuse drive decline
Flush with cash, the executive team spent recklessly, made decisions based upon self-interests and lost focus on the changing marketplace dynamics. The rise of ride-sharing companies such as Uber and Lyft intensified competitive pressures and added to the drag on earnings and cash flow.

Missing the financial forecasts became a pattern and was a cause for concern for the company’s investors. After multiple periods of declining revenues, mismanaged receivables, a magnitude of operational issues and missed loan payments the investors lost confidence in the management team.

VEER Group’s Role: Cash Flow is King
The VEER Group was brought on board to manage the business through the crisis with limited resources. We were tasked with quickly identifying the highest priority issues, determining short-term stabilizing solutions, and creating action plans that could be acted upon immediately.

Cash flow was the most immediate of all the issues. Our challenge was to continue operations while satisfying the short-term debt and operational expenses. We managed cash flow by forecasting, restructuring obligations, and tightly managing accounts receivable, and the payables.

VEER Group analyzed and identifying high growth areas, profit improvement opportunities and end-game goal (sale of the company) along with target acquirers.

Outcome: Getting Back on Track

“The VEER Group arrived well-prepared and with a strong understanding of the business and the critical issues contributing to the decline allowing them to hit the ground running and make substantial improvements within the first 90-days.” – Square 1 BankCo-Founder & Vice President

The VEER Group consolidated the financial services, technology services, and human resources within their shared services group creating a sustainable annual savings of over $1m annually.

Growth in both revenue and profit figures in a declining market positioned the company for a successful sale at a premium price.

In less than 17 months, the company found an exit and was acquired by a large, progressive transportation company out of San Francisco.