From ~$800k Losses to ~$250k Profit and $6m Sale

Sector: Financial Services
Timeframe: 12 months

The situation

A financial services business had raised capital to fund expansion, but the underlying model wasn’t working. Costs were inflated, the client base was underserviced, and the AFSL was underutilised. With losses running at $800k annually and cash burn of $100k per month, the business had around three months of runway left.

The fundamentals were sound. The business held a valuable licence, had a strong client base, and operated in a growing market. But none of that mattered if it ran out of cash.

What we walked into

• Losses of ~$800k per year
• Ongoing cash burn of ~$100k per month
• Cash reserves reduced to ~$300k
• Strong underlying client base, but value poorly realised
• Growth constrained despite holding an AFSL

What we did

• Reviewed and corrected acquisition hygiene to stop value leakage
• Re-engaged the existing client base, extracting value that benefited both clients and the business
• Generated an additional $2 to $3m per annum in revenue from existing relationships
• Leveraged improved performance and positioning to attract additional authorised representatives to the AFSL
• Strengthened financial management to support sustainable profitability

What changed

• Business moved from ~$800k losses to ~$250k profit within 12 months
• Revenue materially increased through client re-engagement and authorised representative growth
• Financial stability and scalability restored
• Business sold for in excess of $6m shortly after the turnaround

The result

Within 12 months, the business moved from near-insolvency to sustainable profitability. The turnaround unlocked value that had always been present but poorly captured. Shortly after, the business sold for over $6m.

The owner went from facing a potential write-off to a genuine exit. The turnaround required minimal additional investment. The value was already there.