Real businesses. Real problems. Real results.

Ampleo was appointed Receiver by Washington State Court to manage and oversee three medical clinics near Vancouver and Longview, Washington. Having become disabled, the owning dentist abandoned the practice, which led to the appointment of the receiver.

Ampleo hired interim doctors to treat patients, implemented a pay-for-performance plan among staff, sold non-productive assets, and restored the practice’s profitability. Ampleo worked closely with the secured lender and unsecured trade vendors on the recovery to keep the practices functioning, and the clinics were ultimately sold within seven months for greater than appraised value. Judge Hernandez congratulated the Receiver on a very efficient and pleasing outcome on its discharge.

Background:

Red Sky Solutions, initially a modest IT consulting, design, and cybersecurity company, faced challenges as it rapidly scaled from 10 million to 30 million in revenue. Realizing the need for robust financial infrastructure and processes to sustain and accelerate further growth, the company sought the expertise of Ampleo, a fractional executive firm recommended by their financial advisor, Matt Zundel from Coign Capital.

Challenges:

Red Sky lacked a CFO, controller, and scalable processes despite increasing demand for their services. The existing QuickBooks software and inadequate financial management threatened to impede their growth trajectory.

Engaging with Ampleo:

In 2013, Red Sky partnered with Ampleo to address their financial and operational challenges. Chris Barney, Red Sky’s CEO, recalls, “I was focused on sales growth rather than on financial operations. While I knew our business well, I had to recognize that I was not a controller or a CFO. I needed smart, experienced people in those roles. Partnering with Ampleo added immediate value to our company that fueled our growth and eventually led us to be acquired for top dollar.”

Ampleo’s CFO and controller conducted a thorough assessment, streamlined financial processes, and facilitated the transition from QuickBooks to Netsuite. This overhaul included refining systems from quote to cash, ensuring effective cash management, and providing clarity on accounts payable and receivable. Ampleo not only revamped financials but also played a pivotal role in creating scalable processes. They trained Red Sky’s team in adopting these new systems, ensuring a smooth transition and fostering a culture of financial efficiency.

Chris emphasizes, “If you aren’t preparing for growth with your financial systems, and processes, then it can really hurt you if you do grow. Whatever inefficiencies or challenges your business might have, they grow too, and often faster than revenue. You can’t just sell your way to growth. Ultimately, your business is a vehicle that moves you from point A to point B. The engine must be tuned and running on all cylinders for the journey ahead, or else you risk not making your exit. I cannot stress enough the need to plan and prepare for growth early.”

Results:

With Ampleo’s assistance, Red Sky achieved remarkable growth. Growing the business from 30M to 100M in revenue in under 5 years. Soon after, Red Sky Solutions was acquired by Presidio, a 5B dollar systems integrator. During the acquisition due diligence by Presidio, Red Sky received praise for having “the cleanest books” ever seen for an organization of its size. Chris reflects, “To this day, it still makes me proud,” highlighting the enduring impact of the partnership.

Chris Barney attributes the increased valuation to Ampleo’s contributions. The acquisition by Presidio not only validated Red Sky’s success but also garnered top dollar due to repeatable and scalable processes and meticulously maintained financial records.

Post-Acquisition Success:

Chris Barney continued with Presidio, post-acquisition, as the SVP of Strategic Business Development, and applied the systems and processes introduced by Ampleo at Red Sky. Chris grew Presidio’s cybersecurity division from ~400M to 900M in just three years. Chris said, “It turns out that the systems and processes Ampleo brought to Red Sky Solutions not only scaled at a regional level but nationally as well.”

Lessons Learned:

Chris emphasizes, “Finance should be treated as a strategic part of your business. It’s what enables and propels growth. If businesses ignore this fact, it is to their own peril. Finding and partnering with a company like Ampleo can help you prepare and maintain sustainable growth even if you believe you can’t afford a CFO now. At Red Sky Solutions, we couldn’t afford not to!” He urges businesses to invest in financial systems and processes as early as possible in the growth cycle.

Conclusion:

Red Sky Solutions journey from a 10M startup to a 100M acquisition success story is a testament to the transformative impact of Ampleo’s strategic financial guidance. By addressing crucial financial and operational challenges, Ampleo became a true partner in Red Sky’s growth, ensuring not only success but also an optimal exit strategy through acquisition. Chris Barney’s endorsement of Ampleo as a strategic advisor reflects the lasting impact and value the partnership brought to the organization.

Peisner Johnson Hits Annual Revenue Goal 3 Months Early with a Fractional CMO

Background

Peisner Johnson (The Sales Tax People) has been helping businesses and trusted advisors for over 30 years stay sales tax compliant. Its team of specialized accountants has consulted with thousands of companies in virtually every industry across the United States and Canada.

Challenges

In 2022, after Peisner Johnson’s full-time CFO departed, CEO Jason Parr and COO Paul Johnson turned to Ampleo for a fractional CFO. While Peisner Johnson had built an incredible business, the leadership team did not have visibility into the company’s year-over-year business performance. Financial reporting was based on cash rather than accrual accounting, making it difficult to track business growth and profitability. Additionally, accounts receivables continued to increase, with 17 percent of all receivables overdue by more than 90 days.

Engaging with an Ampleo CFO

When Ampleo’s fractional accountant and CFO stepped in, they quickly identified the financial changes needed to help the leadership team understand an accurate representation of the company’s financial health. Ampleo’s accountant and CFO implemented accrual-based accounting and restructured their QuickBooks with classes, which helped track and compare profitability across multiple business units.

Ampleo’s team not only made accounting changes but also automated financial forecasting through Giraffe, created dashboards and KPIs, and implemented new reporting and review processes for accounts receivable. As a result, clients began to pay, on average, 10 days faster, decreasing the receivables overdue by 90 days from 17 percent to 6 percent.

Engaging with an Ampleo CMO

“The partnership with our Ampleo CFO proved so successful that when we learned Ampleo also provided marketing expertise, we didn’t hesitate to bring in an Ampleo fractional CMO,” said Paul Johnson. Peisner Johnson had a talented sales team and a dedicated marketing manager but lacked a strategic marketing leader needed to achieve its ambitious annual revenue goals.

With the direction of an Ampleo CMO, Peisner’s marketing team had a leader who helped it create strategies and align its work toward the same goal. In collaboration with Ampleo’s CFO and Peisner Johnson’s leadership team, Ampleo’s CMO developed clear strategies, implemented KPIs for each team member, and created campaigns to drive more leads, resulting in hitting the annual revenue target three months ahead of schedule.

Paul Johnson said, “I’m not a marketer, I don’t do marketing, I don’t even know the first thing about marketing, but having someone with the experience to come in and show the way, create the process, and hold people accountable through KPIs and then seeing the direct results from those efforts is amazing.”

Results

The unified efforts of Ampleo’s financial and marketing consultants to set KPIs, ensure accountability, and deliver results that directly affect the bottom line have resulted in Peisner Johnson’s operating income increasing from 7 percent to 29 percent. With more leads coming from marketing efforts and converting at a higher rate, the team is now able to use the extra revenue to reinvest in its growth and build for an even stronger future.

What began as a solution to fill a CFO vacancy has led Peisner Johnson to not only achieve its immediate revenue goals but also gain stronger financial controls, strategic marketing direction, and improved operational efficiency, allowing it to prepare for continual growth in the future.