Selected Case Studies
Respire
Download Full Case Study (PDF)How Black Ink Business Services helped Respire grow a scalable business model while navigating a parent company.
When the CEO of Respire approached Black Ink, he knew he needed help moving the company toward reaching its full potential. Due to the perspectives he had gained while fulfilling the roles of bookkeeper and CFO, the CEO knew he would need someone knowledgeable in accounting who could help revamp the companies' current systems and processes. Coupling all of this with the need for solid Business Intelligence and some housekeeping, he knew that within a year Respire would be seeking a partner in order to grow the business.
About Respire
Respire was formed in March 2010 with a business model for providing a range of top quality, functional devices that make sleep apnea treatment available to more people than ever before. Following the initial years of success, the company has never been in a better position to capitalize on the opportunities in the market. Respire was acquired by Whole You, Inc. in 2014, a Mitsui Chemicals Company.
The
Challenges
Offboard Accounting Functions from CEO
After four years of the CEO managing all day to day accounting functions for the company, it was time to scale. Prior to Black Ink's engagement, nearly all day to day accounting and bookkeeping functions had been performed by the CEO. Both his role and the company's needs had outgrown his ability to manage these functions while continuing to grow the business.
Business Intelligence Needs
While the company grew, so did the need for a clearer picture of the company finances. This became increasingly apparent as the founders started to plan for growth and a potential investment. Should an investor show interest, Respire would need to have the correct Business Intelligence that could anticipate and answer questions from potential investors.
Sales, Marketing and Ordering System Needed
After five years of managing customer relationships on spreadsheets and calendars, as well as handling all orders flowing directly through QuickBooks, the need arose for a new system. Respire required a solution for tracking orders from sale to delivery with access across offices while integrating with the General Ledger.
Pre-Diligence and Due-Diligence
As Respire actively searched for a potential equity partner, they wanted to ensure their finances and procedures were both in order and well documented prior to sharing sensitive information with potential suitors.
Compliance with New Partner
After the transaction with Mitsui and WholeYou, Respire needed to be able to report into a publicly-traded company with tight closing dates.
Our Solution
General Ledger Maintenance and CFO Functions
Black Ink took responsibility for the QuickBooks file and accompanying financial schedules which included managing all day to day bookkeeping needs. Black Ink performed an audit on the books starting from the entity formation to date, ultimately warranting a revamping of the Chart of Accounts and moving the company to GAAP Standards.
New Budgeting Process and Reporting Decks
Black Ink met with the Stakeholders of Respire as well as the new partners in order to outline the different reporting needs. After classifying the needs and wants of each Stakeholder, Black Ink designed a reporting deck with pathways to address everyone's needs and began a reporting cadence with management.
CRM Integration with Magic Touch
After assisting in vetting several CRM and Order Solutions, Magic Touch Software was onboarded. The process involved migrating all historical and current client data from QuickBooks Enterprise to Magic Touch, then running both systems in parallel for two months before full transition.
Pre-Populated Data Room
Black Ink worked with Respire to prepare for potential investors by ensuring various financial reports and KPIs were tracked and documented. Having worked on the client side of several transactions, Black Ink was able to create a data room pre-populated with reports prior to initial requests, increasing efficiency and decreasing overall transaction time.
Adopt Required Standards
With Respire's new parent company being a publicly-traded company in Japan, it was necessary to adopt all required standards to be compliant with Japanese Nikkei. Black Ink reviewed all processes and worked with the parent company to adopt compliant processes and standards.
The Deliverables
- ■Reviewed four years of books and cleared up any issues found
- ■Launched MagicTouch CRM and integrated with QuickBooks for improved accuracy
- ■Led Annual Financial Audit with an outside firm
- ■Led a Three Year Sales Tax audit
- ■Designed and maintained all Financial Models and Budgets
- ■Led the drafting of the Employees Handbook and Benefits package
- ■Prepared accounting manual as per Mitsui/Whole You's request for compliance
- ■Led the Due Diligence process as the main point of contact on behalf of Respire
- ■Ongoing daily support and General Ledger Maintenance since March 2014
Don’t Take Our Word For It
« As the CEO and founder of a growing company, I'm being pulled in all directions on a busy schedule. I need to prioritize my time on projects that are revenue-generating and that I have the best skill set for, and bring in experts in other areas. Bookkeeping is one of those areas. Having gone through an acquisition with Mitsui Chemicals Inc, Black Ink was able to lead the due-diligence data gathering, allowing me to focus on the negotiations. Black Ink has taken a huge weight off my shoulders and has been able to grow with us as we scale. »
— David Walton CEO and Founder, Respire Medical
