Michigan State University - Eli Broad College of Business

Michigan State University

Author, The Fairshare Model: A Performance-Based Capital Structure for Venture-Stage Initial Public Offerings

EightFold Group Generation (EGG)

Consulting CFO/Controller

My book, The Fairshare Model (April 2019) is about an idea for a performance-based capital structure for companies that seek to raise venture capital via an initial public offering. I call it the Fairshare Model because it balances and aligns the interests of investors and employees...capital and labor. 

The Fairshare Model was conceived to deal with the uncertainty involved in establishing a value for a venture-stage company. There are ways to mitigate the risk of getting it wrong in a private offering, deal terms. But there is no equivalent in an IPO. The Fairshare Model changes that with a deal structure that places no value on future performance. It does that by providing shares for future performance that vote but cannot trade; they convert into the tradable stock based on performance milestones.

Fairshare Model

Author (April 2019) and Blogger

Factory OS is a $65M manufacturer of multi-unit housing units. My focus has been on general, cost, and payroll accounting, as well as audit prep. Company reorganized via an asset purchase.

Factory OS

Interim Controller

Eventus Advisory Group, LLC

Consulting CFO

Assisted this financially-distressed food startup evaluate how to reorganize its governance, operations and launch a CPG product via grocery stores.

Dosa Holdings Inc

BioZone is a contract manufacturer of fluid based products that range from personal care and dietary supplements to medical devices and Rx. I served as interim controller while its parent prepared to sell the business and continued post-sale until the new owner integrated it into its financial system. I improved the quality of analysis of financial data, focusing on product profitability, which led to a new approach for quoting new business. I also advised the division president and chief scientific officer on a host of strategic matters.

BioZone Laboratories, Inc.

Worked with technical founder to define business model and to create investor collateral for start-up seeking up to $2M to develop cloud-based medical decision support software.   

A world-class development team based in the U.K will use Bayesian network mathematical and statistical methodologies to implement decision algorithms developed and tested by a Sacramento area physician who has a background in advanced mathematics.

IO MedSoft

Provided turnaround leadership for $6M chocolate manufacturer as it dealt with broken accounting system, a liquidity crisis and shareholder disputes that led to a change in control.  
In addition to managing tactical matters, I developed solutions to systemic cost and accounting problems and put the company on a path to have robust reporting and controls. This required  reimplementation of NetSuite.

TCHO Ventures

Developed plan for micro-cap company to catch-up on SEC reporting.

Medical Alarm Concepts

SEC Consultant

Strengthening internal controls for start-up importer of "raw superfoods" which are sold to manufacturers.  Created dashboards from Quickbooks Enterprise platform via ODBC data warehouse (Excel pivot tables) and Crystal Reports, financial projections and investor material. Organized efforts to restructure company in order make it attractive to investors.

Sense Superfoods

Interim turnaround CFO for $65M construction firm as it struggled with the effects of financial distress (default on line of credit and cash squeeze).  With a turnaround firm, I helped secure LOC extension, identify operational problems, implement fixes and explore strategic options.  Also maintained rolling 13-week cash forecast, managed AR collection activities and engaged disgruntled creditors.

Draeger Construction

Interim Turnaround CFO

CFO of DVD kiosk operator from formation to merger with Public Media Works.  I developed the financial model to evaluate the opportunity and supported start-up activities (strategy, capital raise).    Post merger, I brought up an accounting system, helped prepare SEC filings and defined requirements for cloud based ERP system.

EntertainmentXpress, Inc.

Questcor Pharmaceuticals

Consultant

Principal with Tatum, a national firm that provides interim CFO/CIO/Controller and project services.
• Emeryville Occupational Medical Clinic: CFO for $3M clinic transitioning from a clinic-based model to an employer site clinic that delivers healthcare and wellness services. Assisted the CEO in planning, developing and presenting options to client companies, healthcare insurance advisors and potential investors. Helped negotiate letter of intent with prospective buyer of the clinics. Worked to address weaknesses in the billing, collection and reporting process.
• Achievo, Inc.: Member of a five-person team engaged by $65M contract software developer to prepare for a registration statement. Refined IPO planning schedule.
• Other: Purchase accounting project for Embarcadero Technologies Corp; FAS 123R stock option disclosures for Azalea Networks, Inc.; Budget prep & analysis for Questcor Pharmaceuticals and member of Tatum’s restructuring practice.

Tatum, LLC

Principal

Project manager for SEC registration statement at $1.8B semiconductor company acquired in leveraged buyout from Agilent Technologies.

Avago Technologies (San Jose)

SEC consultant

Advise $27M medical device firm on SOX and FAS 123R

Ciphergen Biosystems (Fremont)

SOX & FAS 123R Consultant

Advise VP Finance at $1.3B Internet/Telecom company on sustainable SOX processes, assist with SEC reporting, FAS 123R (stock based compensation) and special projects.

VeriSign, Inc (Mt. View)

SOX & Financial Consultant

Interim internal auditor, assisting with testing of IT controls.

Altera (San Jose)

Interim IT Internal Auditor

Entity level SOX report for $30M medical device company.

ThermoGenesis Corp (Sacramento)

SOX Consultant

SEC filings and SOX Project Manager for $13M software company.

Karl Sjogren