Renewable Energy Industry

Case Study:
Board Member and Chief Operating Officer 

Renewable Energy Industry
Business Stabilization and Turn-Around

The Company:  A renewable energy company that focused on the design and installation of high quality residential and commercial solar projects.  The company is located in Austin, Texas.

The Challenge:  This ten year old company was acquired by venture capital investors in June 2008.  The company substantially increased overhead costs while facing intense price competition within the burgeoning solar industry.  As a result, the company depleted its net working capital while suffering heavy net operating losses in 2008 and 2009.

The Solution:  The Company initially engaged Simpson CPA, LLC to provide leadership and technical expertise required to improve its accounting operations and financial reporting capabilities.  The Project Consultant quickly completed a risk assessment and gap analysis of the Company’s finances and operations, quantifying the financial condition of the company.  Working closely with executive management, Board members, other key investors, and the external CPA firm; the Project Consultant outlined an action plan to immediately preserve working capital, to secure investor confidence, to build back cash reserves, and to turn the company back to financial viability.

The Company then contracted with Doug Simpson, CPA to serve as a Director of the Board and as Chief Operating Officer.  Doug joined the Company in April 2010 and executed Meridian Solar’s strategic shift from a residential and commercial solar installer to an Engineering, Procurement and Construction company focusing exclusively on solar and the commercial, public and utility-scale market segments.  Reporting to the Board President, took responsibility for the leadership and assumed responsibility and accountability for the overall strategic planning, business development, and financial and operations of the Solar Company.  This included a strong focus on strategic planning, bonding, compliance, business development, vendor relations, operations analysis, team development, field operations, and financial reporting.

The Results:  Under Doug’s leadership, the Solar Company quickly turned itself around financially and has enhanced its strong position as a proven industry leader in the State of Texas.

• Increased net working capital five times 2009 amounts by year end 2010 and by June 30, 2011 had net working capital over $3million.  
• Increased net sales 34% in 2010 and is on pace in 2011 to grow more than 100% over 2010. 
• Achieved a profit for the year end 2010 and for the six month ended June 30, 2011, and established a $20million plus backlog of profitable projects. 
• Moved from funds control bonding to earning $10million capacity with a top tier bonding company. 
• Improved terms and conditions, and substantially increased credit lines provided by prime vendors.
• Awarded contract to build the largest roof mounted solar installation in the State of Texas. 
• Improved the professional profile of the company by building a team consisting of three professional engineers, nine NABCAP certified professionals, three master electricians, four journeyworker electricians, two certified public accountants, and a doctor of jurisprudence.