Lamplighter provides a broad array of outsourced financial
services to small businesses, private equity and venture capital
firms, and commercial banks.
Private equity firms and commercial banks often struggle with
moving a transaction forward if the prospect company’s finance
team does not have prior institutional experience. Lamplighter
helps companies navigate through these challenges by working with
them before, during, and after a transaction.
Lamplighter’s professionals also have experience serving as CFOs
of private equity firms. The unique world of fund accounting can
be difficult for many traditional CPAs or corporate CFOs to
master. Lamplighter helps small private equity and venture
capital funds navigate through these challenges by ensuring the
proper internal controls and fund management tools are in place.
Each of Lamplighter’s turnaround professionals brings decades of
experience reviving small businesses that have hit a bump in the
road. Working with companies on the brink of bankruptcy takes a
unique set of skills. Lamplighter’s turnaround specialists
are experts at illuminating the financial path for troubled
companies.
Small businesses are focused on growth and execution of their
business plan. This growth often takes precedence over the
back office infrastructure, leaving it understaffed. When seeking
to complete a transaction, these deficiencies stick out to
institutional investors, frequently leading the deal astray.
Lamplighter’s small business services help companies get back on
the path to a successful transaction.
During the Conversion phase, Lamplighter professionals evaluate
the current status of the client’s finance function, including
accounting systems, internal controls, and third-party
accountants. Areas of improvement are identified and
implemented in cooperation with the client’s management team.
Historical financials are also converted to comply with
Generally Accepted Accounting Principals (GAAP), if necessary.
During the Maintenance phase, Lamplighter professionals ensure
that the changes implemented during the Conversion phase continue
to run smoothly within the constructs of the client’s corporate
structure. Periodic reporting is standardized, forecasts
and budgets are developed/refined, cost cutting and process
improvement initiatives are identified, and Lamplighter’s
professionals take over managing the interactions with
third-party accountants and banks.
During the Capital Raising phase, Lamplighter professionals
assist the client’s senior management team and other third-party
advisors in positioning the company for a successful transaction.
This includes preparing a preliminary due diligence package,
evaluating term sheets, and managing the due diligence process
for the company.
Once a transaction is closed, companies face a new challenge:
Institutional Investor Relations. Investor relations for
institutions differs significantly from investor relations with
friends and family investors. Lamplighter’s professionals
understand these differences and help the company manage investor
relations during the Post-Close reporting phase.
The purpose of the Transition phase is to identify and help hire
a new, full-time CFO. Lamplighter leverages its industry contacts
to assist companies in this process. Once the new CFO is
hired, Lamplighter provides training during the Transition phase
in order to ensure continuation of the high level of reporting
standards established in the prior phases of the engagement.
Most private equity and venture capital funds with less than
$150M assets under management cannot afford to hire a full-time
CFO, nor do they need a full-time CFO. Lamplighter’s
professionals have experience working as CFOs of private equity
firms and provide an affordable, flexible solution to small
funds.
Fund accounting requires a unique skill set that escapes many
CPAs and traditional corporate CFOs. Lamplighter’s PE CFO
professionals are proficient in fund accounting, understand the
unique requirements of institutional investor relations, and are
well-versed in managing due diligence processes during
fundraising.
Lamplighter provides Outsourced CFO Services for the fund, the
general partner, and the management company. Our
professionals are well-versed in fund accounting and understand
the symbiotic relationship between these three entities.
Most fund administrators or PE CFO outsourcing firms will
only serve the fund, leaving the general partner with the need to
still hire someone else to handle the general partner’s and the
management company’s books. Lamplighter’s ability to handle
all three entities sets it apart in the industry.
The Dodd-Frank Wall Street Reform and Consumer Protection Act
(“Dodd-Frank”) requires that asset managers with between $25M and
$100M assets under management register with either the state in
which they maintain their principal place of business, or with
the SEC. Furthermore, Dodd-Frank augmented SEC rule 206(4)-7 to
require asset managers to have a defined compliance program,
including:
Designate a Chief Compliance Officer to be responsible for
administering the compliance policy and procedures
Design a compliance program, including written procedures
reasonably designed to detect and prevent violations of the
Adviser Act
Lamplighter can help streamline your fundraising due diligence
process. Our professionals have experience fundraising and
interacting with due diligence teams from some of the top
institutional investors in the U.S. We are able to make the
fundraising process more proactive instead of reactive when it
comes to responding to due diligence requests.
Lamplighter’s Investment Due Diligence Services help private
equity firms get more deals done. When the investment team
is overwhelmed with deal flow, portfolio management, and
fundraising, Lamplighter’s due diligence team can add value by
increasing bandwidth and getting deals across the finish line.
Because Lamplighter focuses on transactions, our
professionals have broad experience across many industries that
allows them to perform both quantitative and qualitative due
diligence in a short period of time.
Not all portfolio company finance teams are created equal.
Lamplighter can supplement existing finance teams who need
guidance and direction. A common situation where Lamplighter can
be helpful is when the existing CFO leaves the portfolio company.
We can plug our professionals in on a part-time basis to keep
things running and assist with the hiring process for a new
full-time CFO. Alternatively, we can plug our professionals in
for longer term engagements where the portfolio company may not
need a full-time CFO. Lamplighter works with private equity firms
to find flexible, affordable solutions for their portfolio
companies.
Lamplighter’s professionals have a vast array of experience in
managing companies through turnaround situations. We have worked
with the special asset groups of commercial banks, with private
equity firms, and with activist hedge funds on deals that have
gone sideways to revive businesses and salvage as much of the
institution’s investment as possible.
In recent years, the most common issue creating a turnaround
situation was inappropriate capital structures due to the
abundance of easily obtained debt. Lamplighter’s professionals
are experts at evaluating capital structures and determining what
makes sense given the company’s prospects. We then work with all
stakeholders to find a solution that gets the company back on the
right financial path.
A CFO is the corporate officer responsible for managing the
company’s financial risks. CFOs are responsible for financial
planning, record keeping, and financial data analysis.
A Controller is responsible for supervising the quality of the
accounting and financial reporting of the company. Controllers
are responsible for internal audit, overseeing accounting, and
monitoring internal controls.
