James Kennedy sits down with Kevin O’Brien, CPA, CFA and founder of Gray Feather CFO, to unpack how he led a $2M EBITDA swing in a single year for a $10M+ distributor – moving from –$500K to +$1.5M. They dig into when EBITDA is useful (and when it’s “BS,” per Charlie Munger), the nuts and bolts of KPI-driven turnarounds, and why a fast, five-day month-end close is non-negotiable.
About Kevin O’Brien
A former auditor turned controller, treasury manager, and FP&A leader, Kevin blends full-stack finance experience with rigorous investment training as a CFA charterholder. Through Gray Feather CFO, he helps owners get timely, decision-ready numbers, build accountability with KPI scorecards, and drive cash-backed profitability.
- Website: grayfeathercfo.com
- Focus: SMB finance transformation, KPI dashboards, cash forecasting, bank relationships/treasury, budgeting
What You’ll Learn
- The $2M Turnaround Playbook: How historical profitability analysis + KPI targets + owner buy-in flipped results from –$500K to +$1.5M EBITDA.
- EBITDA, Explained (and Debated): What gets added back – and why it can mislead in capital-intensive businesses.
- Close in Five Days: Red flags in your finance function (20-day closes, mismatched COGS, “push” vs “pull” reporting) and how to fix them.
- KPIs That Matter in Distribution: Gross margin (and its parts), material cost %, production labor %, and freight leverage.
- Purchasing as Profit Center: RFP discipline, switching/negotiating suppliers, and bringing in freight brokers to claw back points of margin.
- Treasury 101 for SMBs: Managing bank relationships, lines of credit, and cash forecasts so renewals aren’t “held for ransom.”
Episode Highlights
- “If your close takes 20 days, you’re flying blind. By the time you get the numbers, they’re already out of date.”
- “Gross margin is the signal – then break it down. Material costs up 10 points on $10M revenue is a $1M problem to solve.”
- “EBITDA is useful but incomplete. In capital-heavy businesses, adding back big depreciation can turn fiction into finance.”
- “Dashboards drive accountability. Put budget targets beside actuals every month and force the conversation.”
- “The turnaround was compounding. Pricing discipline, purchasing leadership, and freight optimization added up to +$2M.”
More About Kevin’s Role
At Gray Feather CFO, Kevin installs a finance rhythm owners can trust: five-day closes, KPI scorecards tied to the budget, weekly cash forecasts, and lender-ready packages. He partners with leaders to upgrade talent (e.g., purchasing), run competitive RFPs, and lock in margin wins that show up in cash.
