For Greenough Consulting Group, the most complex challenges are often the most enjoyable. GCG was brought into Starvox, a voice and data communications provider, at a pivotal time for the company. Newly-appointed CEO Tom Rowley was tasked with raising capital through a reverse merger into a public shell, putting Starvox in a position to acquire other companies.
The business plan called for supercharging Starvox through strategic acquisitions of copper wire telephone companies where customers were prime for conversion to VoIP technology.
With the departure of the CFO, Rowley made his first call to a trusted advisor he had worked with previously. “GCG provides my early stage companies with capabilities I could never afford to put in place on my own,” said Rowley. “One of the things that’s most valuable is their unique insight into the fundraising process. With this big of a challenge, there was only one choice for me, and that was Greenough.”
While Rowley concentrated on transitioning the company from 250 commercial customers to 28,000 residential customers almost overnight, Greenough created a financial department that could absorb the three acquisitions while simultaneously filing for a reverse merger into the shell—all this while preparing to face the SEC. Within six months, not only were these goals accomplished, but with GCG’s help the company was able to raise an additional $3 million in equity and $17 million in debt to finance the company’s operations. As a logical final step in the engagement, GCG helped identify and hire a CFO.
Rowley adds: “I’ve brought GCG into my last four startups. Getting finance running smoothly, as quickly as possible, allows me to focus on building the business. Hiring GCG is one the first things I do.”
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