This document discusses the benefits of hiring a CFO for a business. It notes that a CFO can help ensure a business has a realistic business plan, understands its market and competition, maximizes existing resources, controls costs and spending, and leverages technology properly. A CFO can also help a business access financing, increase profits and cash flow, clarify financial goals, and plan an exit strategy. The document provides two case studies that illustrate how a CFO helped transport company triple its revenue and increase profits to 20% and helped a biotech startup raise $20 million.

1. Does your business need a CFO?
 Business Plan Current? Realistic? Rational?
 Do you need investors, bankers, cash, to move your business idea
forward?
 Do you know your market? Competition?
 Are you maximizing your existing resources?
 Are you seeking to grow rapidly? Enter new markets?
 Do you have controls over costs and spending?
 Is your company properly leveraging technology?
 Are you struggling with administrative or regulatory issues?
 Does playing CFO keep you from running your business, exploring
other opportunities or talking to customers?

2. Expectations
 Increased profits & cash flow - ROI
 Financing options and means for acquiring capital
 Clarity and communication of financial goals
 Investor relations
 Exit strategy & planning
 Trusted business advisor to CEO and Board
– Ensure integrity of cash management and financial
reporting
– Identify and manage new business opportunities
– Identify and manage business risk
– Provide rational analysis and strategic advice

3. CFO Impact Case Study #1
Private - Pilot Transport Co.
Auto transport company specializing in moving research & test
vehicles around the country
1992 - $7M Gross Sales – 4% shrinking profit margin – Very
limited technology. Company was financed by a $1M, personal
responsibility, partner’s loan
Results:
 First 6 months – secure financing, stabilize the operation
– Formulated 5 Year Business Plan
– Presented business plan to banks
– Negotiated a $5M line of credit secured by revenue pledge and pledge
of equipment (eliminating personal liability issue)
 First two year objective - Increase revenue run rate
– Led development of enterprise software / revenue analytics
– Focused on increasing revenue per mile by maximizing utilization of
people and equipment through a resource assignment calendar
– Embarked on Company wide effort to increase revenue run rate
coupled with employee profit sharing program

4. CFO Impact Case Study #1
Private – Pilot Transport Co.
 Improved productivity through modernized and automated
systems
– Improved communications through a voice activated phone system
coupled with a GPS system on all tractors (trucks)
– Real-time access for dispatchers to track location / utilization of all
equipment nationally
– Instant feedback to dispatchers of revenue rate per trip
 Defined exit strategy for owners
 Tripled Gross Revenue to $20M+ and increased Profit
Margins to 20% in 7 years
– Accomplished by 35% increase in revenue run rate
– Empowering staff to actively participate in improving profit margin and
rewarding them for there efforts
 Company market value increased from $3M to $20M dollars
– Exit strategy executed – company sold to a newly formed publicly
traded company for $20M+

5. CFO Impact Case Study #2
Tolera Therapeutics, Inc.
Biotech start-up opportunity and company founding
– CFO was 2nd employee in company
 Establish financial credibility with potential investors /
venture capital
– Speak their language
– Gauge their resource capacity and financial return expectations
– Sell the opportunity, business plan, and the science
– Negotiate fair valuations, purchase terms, etc
 Set foundation for continuing operations
– Clear regulatory hurdles with FDA
– Manufacturing in a regulated environment (FDA)
– Product development research and testing
– Recruit and hire operating team
– Establish accounting systems and reporting of results

6. CFO Impact Case Study #2
Tolera Therapeutics, Inc.
Results:
 Company launched with $8M venture financing - $14M
raised in 24 months
– During WORST venture industry years (‘08-’09)
– Follow on state funds added $2M after 6 mos
– Investors re-up an additional $4M after two years
 Company has strong operating team, and has met
significant valuation milestones
– 4x increase in company valuation since inception
– Capital conservation strategy for higher ROI
– Product development completed - FDA cleared for human clinical trials
– Lead drug candidate manufactured to GMP
– Growing industry attention and medical community interest
– Partnering and exit opportunities identified

7. Pathways to CFO
Value-added skill sets to support value creation
Board of Directors and CEO
Corporate Strategy & Finance
Chief Financial Officer
Operations
-Manufacturing Information Systems
-Process / controls -Data / process mgmt
-Supply chain mgmt -Security & controls
-Distribution / logistics -Licensing
VP Finance / Controller
-Treasury
-Planning
-Budgeting
Accounting & Administration

8. Other Pathways to CFO
 Contracted Service – B2B
– specific skill for specific need
 Hire – but at minimal salary
– Add incentives for % of increased margin,
sales or operating efficiencies
– Add incentives through stock ownership where
exit potential exists