Proven Results
Proven Results
Proven Results
From the Edge of Insolvency to Profitable in Six Months.
From the Edge of Insolvency to Profitable in Six Months.
From the Edge of Insolvency to Profitable in Six Months.
This is what a Locust Street Advisory engagement looks like in practice, the situation we walked into, the work we did, and the outcome the business achieved.
The Situation
The Situation
The Situation
A project-based business approaching the edge.
A project-based business approaching the edge.
A project-based business approaching the edge.
A professional services contractor serving venture capital funds with 25 employees and approximately $5,000,000 in annual revenue came to Locust Street Advisory in January 2023.
The business had active project flow but was approaching a liquidity crisis. Cash shortages were being masked by a revolving credit line that was nearly exhausted. The owner had no clear picture of which jobs were actually profitable, no 13-week cash forecast, and no financial voice inside the business capable of diagnosing the problem.
A professional services contractor serving venture capital funds with 25 employees and approximately $5,000,000 in annual revenue came to Locust Street Advisory in January 2023.
The business had active project flow but was approaching a liquidity crisis. Cash shortages were being masked by a revolving credit line that was nearly exhausted. The owner had no clear picture of which jobs were actually profitable, no 13-week cash forecast, and no financial voice inside the business capable of diagnosing the problem.
The Problem Underneath
The Problem Underneath
The Problem Underneath
Strong revenue. Broken cash flow structure.
Strong revenue. Broken cash flow structure.
Strong revenue. Broken cash flow structure.
After a two-week discovery analysis, the core issues emerged. Days Sales Outstanding was 61 days, far above industry benchmarks. Days Payable Outstanding was inverted, meaning the business was paying vendors faster than it was collecting from clients — a cash conversion cycle working directly against the business. Job costing was incomplete, making it impossible to identify which contracts were contributing margin and which were consuming it.
The business had real work and real revenue. But the financial structure was systematically destroying cash.
After a two-week discovery analysis, the core issues emerged. Days Sales Outstanding was 61 days, far above industry benchmarks. Days Payable Outstanding was inverted, meaning the business was paying vendors faster than it was collecting from clients — a cash conversion cycle working directly against the business. Job costing was incomplete, making it impossible to identify which contracts were contributing margin and which were consuming it.
The business had real work and real revenue. But the financial structure was systematically destroying cash.
The Work
The Work
The Work
Integrated. Hands-on. Immediate.
Integrated. Hands-on. Immediate.
Integrated. Hands-on. Immediate.
Locust Street Advisory integrated directly into the business within the first week. We rebuilt the 13-week cash flow forecast using actual performance data. We restructured vendor payment terms to extend DPO without damaging supplier relationships.
We implemented a job cost review process that identified the largest sources of margin erosion and gave the owner real-time project profitability for the first time. We renegotiated the business's relationship with its primary lender to stabilize the credit facility and buy time to execute the recovery plan.
Locust Street Advisory integrated directly into the business within the first week. We rebuilt the 13-week cash flow forecast using actual performance data. We restructured vendor payment terms to extend DPO without damaging supplier relationships.
We implemented a job cost review process that identified the largest sources of margin erosion and gave the owner real-time project profitability for the first time. We renegotiated the business's relationship with its primary lender to stabilize the credit facility and buy time to execute the recovery plan.
The Results
The Results
The Results
Sixty days to solvency. Five months to profit.
Sixty days to solvency. Five months to profit.
Sixty days to solvency. Five months to profit.
Within 60 days of engagement, the business had returned to solvency. By month five, it had reached sustainable profitability. The cash conversion cycle was corrected. The owner had a forward-looking financial picture and a financial partner embedded in the business and staying there.
Within 60 days of engagement, the business had returned to solvency. By month five, it had reached sustainable profitability. The cash conversion cycle was corrected. The owner had a forward-looking financial picture and a financial partner embedded in the business and staying there.
Client Feedback
In their own words.
Jim Gray
“Daniel has the rare understanding of both the financial and operational sides of a business. He asks the right questions, diagnoses risks and challenges assumptions early. He has a good grasp of human nature and sees around corners. And he has the kinds of practical insights that help companies make sound business decisions.”
Client Feedback
In their own words.
Jim Gray
“Daniel has the rare understanding of both the financial and operational sides of a business. He asks the right questions, diagnoses risks and challenges assumptions early. He has a good grasp of human nature and sees around corners. And he has the kinds of practical insights that help companies make sound business decisions.”
Client Feedback
In their own words.
Jim Gray
“Daniel has the rare understanding of both the financial and operational sides of a business. He asks the right questions, diagnoses risks and challenges assumptions early. He has a good grasp of human nature and sees around corners. And he has the kinds of practical insights that help companies make sound business decisions.”
Facing a similar situation?
Facing a similar situation?
Facing a similar situation?
Whether you're in active distress or building the infrastructure before problems arrive.
Whether you're in active distress or building the infrastructure before problems arrive.
Whether you're in active distress or building the infrastructure before problems arrive.
The conversation starts the same way, a direct call with Daniel.
Construction-focused fractional CFO services. Cash management, forecasting, and financial leadership built for contractors.
© 2026 Locust Street Advisory. All rights reserved.
Construction-focused fractional CFO services. Cash management, forecasting, and financial leadership built for contractors.
© 2026 Locust Street Advisory. All rights reserved.
Construction-focused fractional CFO services. Cash management, forecasting, and financial leadership built for contractors.
© 2026 Locust Street Advisory. All rights reserved.