Core Challenges
MedCompli, a company committed to revolutionizing the healthcare, life science, and pharmaceutical industries, develops innovative software solutions that simplify compliance management. As the business found product-market fit and sales began outpacing its capacity to keep up with invoicing and cash collections, the bare-bones accounting solution they started out with suddenly became a real liability. Chris Gingras, President and CEO, saw a clear need to upgrade the back office with a stronger team, more robust tools, and a rapidly scalable approach.
How We Supported & Supercharged
Cash, collections, and improving financial health
It takes money to make money, so fast-growing businesses tend to burn cash faster than they can generate it!
The initial engagement centered on addressing immediate cash flow challenges.
Given MedCompli's business trajectory, incoming cash and collections were identified as critical drivers of financial health. The SPRCHRGR team immediately began syncing missing information between systems and repairing the upstream processes that were creating cash flow bottlenecks.
SPRCHRGR implemented right-sized technology solutions to quickly organize financial records and streamline the invoicing and accounts receivable (AR) functions. This directly improved cash flow and enabled the business to precisely track and report recurring subscription revenues from its expanding customer base.
Creating clarity in credit accounts
It’s common for early-stage bootstrapped founders to pay for expenses from multiple accounts, often using a mix of both personal and business credit cards. We combed through the historical transactions to provide clarity and accountability, looking backward, then helped the business better align payment outflows on dedicated credit cards for each function, going forward – creating a diligence-ready set of accounting records and process controls that can be shared with outside parties.
Recurring revenue recognition
When MedCompli first hired SPRCHRGR, their first few cohorts of annual contracts had already lapsed, and they were behind on billing for annual renewals. After reviewing each contract, we quickly identified the gaps and developed a master schedule that tracks billing, deferred revenue, and contract renewal milestones. This led to clear and accurate revenue recognition, which enabled MedCompli to report and project future revenues and cash flows on a GAAP-compliant accrual basis – crucial KPIs that investment bankers, attorneys, and other deal-makers rely on to calculate enterprise valuation when preparing for a transaction.
Setting the stage for an eventual liquidity event
SPRCHRGR understands the importance of correctly setting up financial systems and records to align with the business value story and maximize the potential for future opportunities.
Our engagement model prioritizes processes that serve clients' best interests, both immediately and in the long term. Month-end closes follow rigorous accounting standards, with detailed schedules maintained to reconcile all key balance sheet accounts.
This approach provides company management and potential future investors with complete confidence in financial accuracy. By anticipating future needs and requirements several steps ahead, SPRCHRGR enables business owners to focus on execution and growth rather than back-office concerns.
Outcome
Ready for the right opportunity
We prioritized solutions that significantly streamlined revenue collection, improved cash flow, and ensured timely invoice submissions because we understood that showing consistent month-over-month profit growth and positive cash flow would be vital in attracting the next round of investors.
"At MedCompli, our mission has always been to simplify compliance management," said Chris Gingras, MedCompli | A MediSpend Company. “SPRCHRGR helped me simplify my financial management. We could scale the business and were ready when the right investment partner approached us. I appreciate not just their attention to detail and solving the initial cash flow challenge, but they were thinking ahead for me and what I might need for a potential sale.”
Everything is in place and professionally managed.
At MedCompli's request, SPRCHRGR met with potential investors to demonstrate how the company financials had been set up with conventional best practices and were current, backed up, and justifiable.
The investors, impressed with the level of detail and accountability, had complete confidence in the business's vitality. MedCompli had everything in place for a new partner, MediSpend, to enter the picture and strategically align. In 2024, MediSpend, the compliance system of record for some of the world's largest pharmaceutical, medical device, dental, and emerging biotech companies, acquired MedCompli.
MedCompli’s leadership team leveraged SPRCHGR’s services throughout the transaction, and they continue to entrust our team to support the larger and still growing business into the future.
At SPRCHRGR, we bring a future-focused approach to our accounting and outsourced back-office services. Contact us to learn how we can help your business optimize systems, strengthen cash flow, and prepare for long-term success.
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