Entity & Structural Advisory
Modernizing a Legacy Textile Business for the Digital Age
A newly acquired textile manufacturing business was modernized through digital inventory systems, asset protection structuring, and CFO-level financial strategy to support scalable growth.
overview
A newly formed print manufacturing startup acquired a legacy textile production company that had no electronic financial records, no inventory management system, and no formal internal controls.
Without modernization, the acquisition posed significant financial, operational, and liability risks. To protect the investment and position the business for growth, the company required immediate operational restructuring, financial oversight, and long-term strategic planning.
Challenge
The acquired business relied almost entirely on manual, paper-based processes, making it difficult to:
Track inventory accurately
Value equipment and materials
Produce reliable financial reporting
Assess operational profitability
Additionally, the absence of a formal asset structure exposed the owners to unnecessary liability and limited future financing and expansion opportunities.
Solution
We conducted a comprehensive assessment of the financial and operational risks associated with the acquisition, identifying both immediate vulnerabilities and long-term opportunities.
Our solution included:
Designing and implementing a fully customized Fishbowl inventory system tailored to a textile manufacturing environment
Digitizing purchasing, production, and inventory workflows
Conducting a detailed asset categorization and valuation process
Establishing a separate asset-holding entity to protect equipment and infrastructure and optimize tax and liability outcomes
This approach modernized day-to-day operations while creating a more resilient financial and legal foundation.
Result
The business transitioned from manual processes to a fully digital operational system, with approximately 95% of workflows digitized across four locations.
The modernization effort:
Improved inventory accuracy and cost tracking
Enabled reliable financial reporting and decision-making
Reduced operational and liability risk through asset protection structuring
Generated over $45,000 in immediate financial impact from strategic implementation
We continue to provide fractional CFO support, offering ongoing oversight of inventory systems, maintenance planning, compliance with asset structures, and financial modeling to support sustainable growth and future expansion.
