Background
The founders of Groups—Recover Together transformed the conventional model for treating opioid addiction by pairing medication with weekly therapy sessions in an affordable package. Groups initially engaged Danforth Advisors in the company’s early stages to bring structure and clarity to its finance function and, ultimately, establish the foundation for its aggressive growth plans.
“There was a long-term plan to hire a CFO, but in the early stages it made sense to ‘get the house in order’ to support the business in a capital-efficient way, and Danforth was able to expertly fill this role,” said Steve Kraus, a member of the company’s board of directors and investor with Bessemer Ventures.
Danforth Role
- Provided interim CFO services for strategic guidance and overall management of the finance function
- Helped the company secure a $5M venture debt line, including development of projections and financial reporting processes to satisfy the lenders
- Oversaw technical accounting and financial reporting
- Analyzed the company’s revenue cycle processes, including advisory on the revenue recognition and reporting implications of the company’s revenue cycle as its participation in insurance and Medicaid programs increased
Results
Working with Danforth afforded Groups the flexibility to add or change resources as needed to manage the finance function, both strategically and operationally.
“As the relationship evolved, we got much more involved in financial reporting and completing financial analysis to get the company audit ready,” said Daniel Geffken, who served as interim CFO. “The company was growing rapidly and needed systems in place to catch up with that growth. We spent significant time creating financial processes to integrate their revenue cycle information into their financial reporting process.”
As planned, following the nine-month engagement with Danforth, Groups hired its first CFO – Josh Willeford.
“The entire Danforth team did a wonderful job laying the groundwork for the company’s finance, accounting, and revenue cycle functions. They made my transition remarkably smooth, and we’re confident that the processes put in place by the Danforth team will see us through our next phase of growth,” said Josh. “They have been true partners, providing valuable feedback that we’ll be able to apply to improve our business operations moving forward.”