Client
A multi-location private outpatient and diagnostic healthcare business, operating across imaging and specialist-led clinical services, with revenue scaling from $11.6M to $20.2M over four years
Problem
Financial reporting lagged by over a month, the audit was running nine months behind, and results were presented on a consolidated basis with no visibility into performance by clinical service line. Leadership could not explain where margins were being generated or lost, and capital decisions were being made without a defined return model. Despite growth, the business was not in a position to access external financing.
Services
Ongoing Virtual CFO engagement to rebuild the financial function, implement service line and management reporting, and establish disciplined budgeting, forecasting, and cash flow processes. The mandate included restoring audit integrity, strengthening receivables management, and building a scalable operating and capital planning model.
Results
- Revenue scaled from $11.6M to $20.2M
- EBITDA improved from $0.6M to $2.2M
- Normalized EBITDA exceeding $3M after group overhead and non-recurring adjustments
- Reporting timelines reduced from 45 days to within 10 days of month-end
- Audit delivery brought forward to early April each year
- First institutional financing secured, funding clinical expansion
Full Case Study
The situation
When the business engaged Wefinx, the clinical platform was strong and demand was growing. The financials told a different story.
Revenue had reached over $11M, but the financial function had not kept pace with the scale of operations. Reporting lagged by more than a month, and the audit was running nine months behind. Financial statements were presented on a consolidated basis with no breakdown across diagnostic imaging and specialist outpatient services.
Leadership could not explain where profitability was being generated or lost. Capital decisions, including investment in diagnostic equipment and expansion of clinical services, were being made without a defined return model. Despite growth, the business was not in a position to access external financing.
The challenge
Five issues had been compounding without resolution.
Financial reporting provided no visibility into performance by clinical service line. All activity was reported as a single blended number, leaving no way to distinguish between profitable and underperforming areas of the business.
There was no budget at a service line level and no forward-looking forecast. Growth decisions were being made without a structured financial model to support them.
The audit process was significantly delayed and reporting timelines made it difficult to engage with lenders. Without reliable financial information, funding discussions stalled early.
Accounts receivable processes lacked structure. Billing cycles were not aligned with clinical throughput, creating delays in collections and inconsistent cash flow.
As the business expanded, the gap between operational performance and financial visibility continued to widen.
What Wefinx did
Wefinx led a multi-year Virtual CFO engagement, working alongside management to rebuild the financial function and position the business for scale.
Monthly management reporting replaced delayed compliance outputs, giving leadership current visibility into performance for the first time. Reporting was rebuilt around clinical service lines across diagnostic imaging and specialist outpatient services, including MRI, CT, ultrasound, and specialist-led clinics, with revenue, cost, and contribution tracked at the modality and service level.
A full operating model was developed on a service line basis. Revenue projections, cost structures, and capital expenditure were tied to defined return assumptions. Budgeting and quarterly forecasting were introduced alongside it.
Billing and collections were restructured to align with clinical throughput, improving cash flow consistency and reducing delays in receivables.
The audit process was rebuilt through structured close procedures, reconciled schedules, and supporting documentation. Financial statements previously delivered nine months late are now completed on a predictable timeline each year.
With reliable financials in place, the business secured institutional financing for the first time. Expansion included both diagnostic capacity and specialist outpatient services, requiring coordinated capital planning across equipment, facilities, and clinical delivery.
What the engagement produced
Revenue increased from $11.6M to $20.2M over four years, supported by disciplined expansion and improved operational clarity. EBITDA improved from $0.6M to $2.2M. On a normalized basis, EBITDA exceeded $3M after adjustments for group-level overhead allocations and non-recurring items.
Gross margins held at approximately 48% throughout the period as cost discipline and service line allocation improved.
Reporting timelines came down from approximately 45 days to within 10 days of month-end. Management shifted from relying on delayed reporting to making decisions based on current performance data.
With financial reporting, audit readiness, and operating discipline in place, the business secured its first institutional financing, establishing a clear path for continued expansion.
Based on normalized EBITDA and comparable healthcare transactions, the business now supports a valuation in the range of $20M to $24M, with further upside tied to execution of the current growth plan.
The founder had built a clinically strong platform. The financial function had not kept pace. Rebuilding it changed what the business was worth and what its future could look like.
Engagement scope
This is an ongoing Virtual CFO engagement, now in its fifth year. The role covers financial reporting and close oversight, budgeting and forecasting, cash flow and working capital management, capital planning and investment analysis, banking and financing relationships, and audit coordination. It continues to evolve alongside the business, supporting both day-to-day financial control and long-term value growth.
If your business is growing but the financial picture is not keeping pace, that gap is worth closing sooner rather than later.
