Date
Client Name
Title
Address
City, State, Zip
Dear (Client Name):
Thanks for taking the time yesterday to discuss the financial management needs
of (company). We are very excited about the opportunity to propose the services
of TechCXO at (client), and look forward to working closely with you to formalize
the scope of these services and to begin providing the value needed for (client)
to “Experience Acceleration”.
As we discussed, TechCXO provides (relevant services). This typically comes in
the form of a TechCXO partner assigned to each account to manage the overall
relationship and serve as the CFO level resource in the organization. The CFO
can be involved with a variety of tasks, including review of financial statements
for compliance with GAAP, discussion and management of the business and
operating model, participation as a key member of the management team,
helping to formulate strategy, and discussions with potential investors, bankers
and the like.
In addition to the service of the TechCXO partner, if required, we can provide
additional resources on either a project or permanent part-time basis to provide
such services as staff accounting, special financial projects, hiring assistance
and HR management. We also offer comprehensive services for Sales,
Marketing, Operations, Technology and Talent.
The attached proposal outlines in more detail some of the capabilities of
TechCXO and the particular areas where we propose that (company) engage us,
based on our understanding of your needs. After you have had a chance to
review this proposal, we would welcome the opportunity to review it with you in
detail to address any questions you may have, and to further refine your
requirements.
We look forward to working with you in this process.
Sincerely,
Partner, TechCXO
75 5th Street, Suite 354, Atlanta, GA 30308
About TechCXO
TechCXO is a professional services firm that provides experienced, C-Suite
professionals to deliver strategic and functional consulting services for
technology companies.
TechCXO partners combine practical experience, comprehensive resources and
best practices to deliver objective, high-value results.
We answer your critical issues around obtaining capital, increasing revenue,
entering new markets and improving margins. We create value in every
engagement by using our knowledge and experience to give clients new options
and choices to:
-
Invest
Reposition
Obtain capital
Build market visibility
Increase revenue
Make acquisitions
-
Build sales channels
Select and deploy technology
Enter new markets
Develop new products
Improve operating margins
Exit
TechCXO Finance Practice
Our Finance Practice partners act as your guides through your most critical
decisions and functions. Every one of our Finance Practice partners have
successfully led technology companies as their CFO or most senior finance
officer.
Our clients include angel, venture and private-equity backed tech firms, small cap
public companies, rapid growth companies or companies with interim or complex
project needs. Services include Corporate Governance, Debt & Equity Financing,
Financial Operations, Strategy & Business Planning, Transaction Support and
Specialty Services.
We meet needs and solve issues in the following areas:
• Treasury & Cash Management
• Equity & Debt Financing &
Recapitalizations
• Financial Management &
Executive Leadership
• Accounting System Selection &
Implementation
• M&A, Divestitures and Joint
Ventures
• Due Diligence Support and
75 5th Street, Suite 354, Atlanta, GA 30308
•
•
•
•
•
•
Analysis for Buyers and
Sellers
Turnarounds & Restructurings
Building or Upgrading Your Board
Business Plan
Strategic Plans
Financial Models
Executive Presentations (for
capital raising, M&A, etc.)
• Internal Controls / Policies &
Procedures
• Accounting and Control
Procedures
• GAAP
• SEC Reporting
• Audits & Audit Committees
• Contracts/Agreements
Specialty Service Offerings
•
•
•
•
•
SWOT Analysis (Strengths,
Weaknesses, Opportunities,
Threats)
FAS 123R and IRC 409A
(Stock Option Accounting and
Reporting)
Foreign Currency Translations
Revenue Recognition
Consolidations
•
•
•
•
•
•
Foreign Subsidiaries
Valuation Analysis (corporate
or intangibles)
Contract negotiation
Equity-based compensation
programs
Human resource policies and
procedures
Employee benefits
As a key member of your management team, TechCXO can provide the right
resource at the most effective cost to address the needs of your growing
enterprise. We look forward to having you join the growing list of satisfied
TechCXO clients.
75 5th Street, Suite 354, Atlanta, GA 30308
Consulting Services Proposal for
(Clients)
(Date)
Overview
(Client) is developing a new generation of on-line games delivered through
social networks. The management team is made up of gaming industry
veterans, and the company has recently secured initial venture financing. The
initial product is expected to launch in Q4 2011. The business model is a
“Freemium” model, whereby consumers will access games for free through
social networks like Facebook, and then hopefully upgrade to premium
content for an additional fee.
The Company is expecting rapid growth, and management is seeking
executive management assistance, particularly in the financial arena, to help
ensure that financial operations are appropriately established and managed
to facilitate the expected growth. Additionally, management is seeking
assistance in strategic planning for company growth, financing that growth
and planning for potential exit opportunities in the future.
Currently, financial operations are being managed by an office manager with
book keeping experience and are operating on a QuickBooks platform. This
consists mostly of payroll processing and vendor bill payment, and basic
monthly financial reporting.
Objectives
Based on our discussions with (Client) management, the following outlines
the areas where TechCXO could provide value added services. This list is not
meant to be all inclusive, nor is (Client) required to engage TechCXO for all of
these services. It is meant to provide an outline of our observations of where
additional expert resources could be applied for significant value add to the
business:
1. Work with existing resources to gain an understanding of the current
financial processes. Establish a routine of monthly financial close and
reporting that provides timely results and actionable information. Also,
help identify key operating metrics and ensure that proper tracking and
reporting are in place to achieve company objectives.
2. Produce a financial model of the business based on the desired growth
state. Help identify and model key business drivers so that appropriate
sensitivity analysis on operating and sales options can be easily modeled,
75 5th Street, Suite 354, Atlanta, GA 30308
3.
4.
5.
6.
7.
and include impacts on working capital, capital expenditures, space
needs, hiring, and cash burn rate.
Based on the outlook from the modeling effort, assist (client) management
in crafting a financing strategy for the business growth, including timing
and identification of financing options, and assist management in
preparation of materials that would be needed to best present the
company and assist in procuring the desired financing. Provide guidance
to management around the operations and financial implications of various
growth and financing strategies and alternatives.
Prepare regular monthly reporting package for sharing with outside
investors. Participate in regular business reviews and Board of Director
meetings to explain the financial results.
Perform a “financial health check” of the business to identify any
significant risk areas related to financial processes, human resource
management, tax/nexus issues and risk management. The goal would be
to identify any issues requiring immediate attention, as well as compiling a
list of items that should be addressed over time as resources permit.
Help identify any tools or systems that may be needed to support the
financial and operational needs of the Company.
Participate in regular financial and operations reviews to ensure (client) is
tracking to plan, and assist in mitigation planning if needed.
Timing, Scope and Staffing
TechCXO proposes to assign Neal Miller as the CFO partner for (client). Neal
has significant experience in early/mid stage companies. Neal will provide
oversight to the overall process and provide the CFO level guidance to the
Company as appropriate. We also recommend the assignment of Jason Scherr,
a Director at TechCXO. Jason has significant experience in complex financial
modeling and setting up financial systems, processes and reporting packages.
Jason will take the lead in items 1,2,4,5,6 above. Profiles for Neal and Jason are
attached.
As the scope of work is finalized, additional TechCXO resources may be
assigned, with (client)’s approval. The objective of these assignments would be
to match the most cost effective resource with the scope of services to be
performed. While the startup phase of the project likely will involve more effort,
we would expect that the ongoing involvement would be in the range of 15-25
hours per month. In the early phase of the engagement, we would expect to be
on site approximately two visits per month and interacting remotely in the interim.
TechCXO’s services are provided on an hourly basis.
structure is:
75 5th Street, Suite 354, Atlanta, GA 30308
Our standard rate
Hourly
Rate
$220
$160
$125
$65-90
Billed as
incurred
CFO/Partner
Director
Controller
Staff Accountant
Expenses (if any)
Terms and Conditions
Terms and conditions are defined in the Consulting Services Agreement that will
be executed by the parties after approval of this proposal. A copy of the
Consulting Services Agreement is attached for your reference.
Approvals
To accept this Proposal, please sign and date below.
Executed by TechCXO, LLC
Executed by (client)
Signature:
Signature:
Date:
Date:
Name:
Name:
Title:
Title:
75 5th Street, Suite 354, Atlanta, GA 30308
TechCXO Team Profile
Neal Miller - Partner
Neal Miller brings over 25 years of financial, operations, sales and marketing
executive management experience to TechCXO, having served in senior
management positions in private and public companies ranging from pre revenue
to $2 billion in revenues. Neal has significant experience in software,
telecommunications and subscriber based services.
Prior to joining TechCXO, Neal has served as CFO at publicly held companies
American Software Inc., Syntellect Inc. and Cypress Communications Inc., and in
a senior financial management position with Tandem Computers. His early stage
experience includes venture backed CES International where he prepared the
company for an IPO and raised nearly $20 million in venture capital, and Agentis
Software, where he led a buyout of this venture backed company and served as
CFO and Director. Neal also has served on the advisory board of MaxRecall
Technologies, an early stage, privately held provider of integrated document
management solutions.
Neal’s spans of responsibility as a CFO have included all financial,
administrative, legal, human resources, IT and internal systems development
functions. He has extensive experience directing the implementation of back
office solutions, both packaged and custom developed systems. In addition to his
financial expertise, Neal also served as Division President of Syntellect
Interactive Services, the $10 million hosted IVR services division of Syntellect
Inc. where he was responsible for sales, marketing, product development and
customer care and as an Account Executive, selling enterprise software solutions
at American Software.
Neal began his career as a CPA with then Big 8 firm KPMG after obtaining his
BBA from Georgia State University.
75 5th Street, Suite 354, Atlanta, GA 30308
Jason Scherr – Director
Jason Scherr has been with Tech CFO since early 2008. Jason offers clients
financial and accounting leadership drawing on a diverse business
background. He has held numerous positions within small, medium and large
companies including: CEO, VP- Finance, Treasurer, Controller, Director of
Operations, Program Manager and Analyst.
Prior to joining Tech CFO, Jason worked as VP- Finance reporting to the CEO
of a service company where he was responsible for all financial and accounting
functions of the organization. He led a $10 million capital raise that ignited
revenue growth from $4 million to $25 million. Jason started his career as an
Analyst and eventually became Program Manager at General Electric where he
was involved with new business development and current product growth related
to major clients including Home Depot.
Jason has a BBA degree from Goizueta Business School at Emory University
and is a lifetime member of MENSA.
75 5th Street, Suite 354, Atlanta, GA 30308