How We Do It...

Chief Financial Officer Capabilities • Profitable Business Planning
Business Evaluation

Chief Financial Officer Capabilities

These capabilities provide business owners with a system for making informed decisions based on solid financial analysis. The result is comprehensive plan for achieving profit and cash flow goals.

1. Discovery and Assessment

• Identify problems that require immediate attention (i.e., cash short falls, unprofitable business segments, accounting problems).
• Identify opportunities that can increase profits (i.e., purchase a business, expand territories or product lines).
• Assess accounting records and systems for accuracy and usefulness.

2. Financial Translation

• Analyze past financial performance to troubleshoot areas for improvement and opportunities for growth.
• Translate financial needs into good accounting procedures and processes.
• Translate the financial records into useful decision making tools.
• Work with the company CPA and attorney for tax planning, risk management and corporate structuring.

3. Opportunity Evaluation

• Evaluate each line item on the income statement and balance sheet to determine its ability to produce income.
• Evaluate growth opportunities for profitability and cash flow in the market place.
• Run profit and cash flow projections under different scenarios to proactively plan for all opportunities and risks.

4. Strategic Action Plan

• Analyze the Evaluation results and decide which opportunities to pursue.
• Develop and execute a strategic plan to take advantage of all opportunities for profit growth.

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Profitable Business Planning

This planning process is designed to produce clear cut answers about how and when to tackle specific Business Opportunities and Challenges especially as they relate to profits, cash flow and ROI.

1. Project Discovery

• Define the company’s financial and business goals.
• Define the target opportunities and issues requiring resolution.
• Assess the opportunities and risks as they relate to the overall company goals, profitability and business valuation.

2. Financial Translation

• Analyze the company’s past financial performance.
• Analyze the opportunities and issues as they relate to every aspect of operations and profitability.
• Translate the opportunities and risks into financial metrics.

3. Evaluation

• Create cash flow and profit projections to evaluate every aspect of the target opportunity and risks.
• Evaluate the opportunities and risks effect on cash flow and profit under different market conditions.
• Calculate the rate of return and business valuation under the different scenarios.

4. Strategic Action Planning

• Use the analysis produced in the Evaluation process to make decisions regarding the various target opportunities and risks.
• Develop a road map to achieve the goals defined above.

Result:

1. Analysis and Report showing how a specific opportunity (or challenge) will affect cash flow, profit and ROI.
2. Critical success factors to achieving those financial results.
3. Critical risk factors that may alter those results.
4. Action plan for achieving profit goals.

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Business Evaluation

Business evaluation services are designed to determine what a business is worth, how much cash will be required to run it, and the critical success factors required to make it profitable.

1. Discovery

• Identify the target business for evaluation.
• Define goals for the acquiring company.
• Assess the opportunities and risks as they relate to the acquisition of the target company.

2. Financial Translation

• Analyze the target company’s past financial performance.
• Analyze the opportunities and issues of the target company as they relate to every aspect of operations and profitability.
• Translate the opportunities and risks into financial metrics relevant to the acquiring person or company.

3. Evaluation

• Create cash flow and profit projections to evaluate every aspect of the acquiring the target company.
• Evaluate the projected cash flow and profit of the target business under different market conditions.
• Calculate the potential rate of return and business valuation under different market conditions.

4. Strategic Action Planning

• Use the analysis produced in the Evaluation process to determine the value of the business to the new owner.
• Create a capital plan for financing the purchase of the company.
• Create a negotiation strategy for acquiring the business under favorable conditions.
• Develop a road map for acquiring and structuring the new company.
• Create an action plan for managing the company (once acquired) to attain profit and cash flow goals.

Result:

1. Acceptable price range for the target business.
2. Plan for negotiating the purchase on favorable terms.
3. Capital plan to finance the purchase.
4. Strategic plan for achieving profitability after the purchase.

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