Financial Planning
Accurate and realistic forecasts/projections are of tremendous value as they allow a business to anticipate its future funding needs, identify key trends and side-step predictable pitfalls.
Short term (weekly & monthly) and long term (monthly & yearly) forecasts can be critically important even in relatively small and straight-forward businesses (perhaps even more so!) and they should form part of the monthly management reporting pack.
In addition to helping you monitor trading performance, forecasts can have a variety of other business uses as well such as:
- Supporting an auditors' going concern conclusion;
- Fund raising for consideration by a Bank, ABL or similar;
- Assisting in an M&A or disposal process; or
- Setting targets to motivate sales and/or senior management.
As the old addage says....a failure to plan is a plan for failure!!
Management Accounts
The accurate reporting of monthly management accounts is a critical business function and should never be considered a chore. They are vital for truly understanding trading performance and ought to be prepared on a timely basis each month.
Whilst the content of monthly reporting packs may vary from business to business, good practice dictates that they incorporate variance analyses alongside the primary profit & loss account and balance sheet statement.
These analyses help us to understand and ideally duplicate (exploit) any positive trends or competitive advantages identified whilst mitigating any inefficiencies or deficiencies.
Also, anticipating the "needs" of a reader and presenting the right information in the right way can be hugely important especially when reporting to external stakeholders such as a bank, customer or supplier.
Whilst Mike can perform your bookkeeping duties, it is not really cost-effective for him to do so regularly as he works best by "topping and tailing" the output from your finance team.
As part of the process, he will sense check and analytically review all key balances and control accounts to ensure the figures are reliable with a view to forming a reporting pack that will take a reader directly to the key issues.
Cashflow management
Cash is King!
Whilst this statement is undoubtedly true, a considered and careful treatment of all key suppliers (i.e. "creditor care") is vitally important too since credit terms are hard to build up and all too easily withdrawn.
Good communication, setting the right expectations whilst adhering to promises made to a creditor are made considerably easier if your plan is realistic and achievable in the first instance.
However, if a plan is flawed from the outset (and this is particularly true in distressed and fast-growing businesses) then cash could disappear quite quickly and replacing it may be difficult to achieve.
In fact, in many cases, the onus of replenishing cash would fall onto business owners who may need to dig deep personally to support a business in the short term to allow trade to recover in the future.
Mike will help you to design a robust and easily understandable model that takes into account all key dynamics such as invoice discounting or factoring facilities to help you manage, monitor and "regulate" what is often the "life-blood" of a business.
In practice, this model will differ from the long term forecasts above and, ideally, should comprise a rolling 13 week period to provide a "look-see" into the future. The 13 weeks period should give you sufficient visability (as it represents a whole quarterly cycle) for sensible cashflow decisions to be made.
Refinancing & Capital
Mike is highly experienced in the world of asset based lending ("ABL") (principally invoice discounting, factoring and plant & machinery finance), traditional Bank lending, equity finance and also, the relatively new, crowdfunding.
The range of competing products in this fast-moving market place can be bewildering and sometimes truly independent advice is difficult to find.
In this world, securing the right funding package for you and your business aspirations requires a thorough undertanding of the available products, the lenders and also your business strategy.
Consequently, obtaining the lowest cost and best flexibility is the result of a considered and informed appraisal after comparing several quotes.
Mike is well connected in this arena and, crucially, he is truly independent and will be focussed on what your business needs are in order to secure the most advantegous package and at the best rates possible.
Services
Business Review
Mike has conducted hundreds of Independent Business Reviews ("IBRs"), Limited Scope Reviews ("LSRs"), business plans and fund raising documents over the years.
These review are normally implemented on behalf of (but not always) Banks, ABL's i.e. invoice discounters or similar lending groups.
Other key stakeholders such as shareholders, equity providers, suppliers and customers together with prospective lenders or investors may also require similar reports from time to time.
Mike can assist in a number of ways including:
- Conducting the actual business review;
- Preparing the financial information ahead of a review;
- Advising management and funders before, during or after a review;
- Implementing or monitoring post-review action points; or
- Independent mediation on behalf of management or the funder.
Analysis & Strategy
Similar to a business review in some regards but different in that it ought to be an ongoing process with a scope not necessarily limited to matters of finance.
Mike will help you document a mission statement (not as corny as it sounds), establish a base position (key strengths, opportunities, markets, weaknesses etc.) and set realistic and deliverable business and personal objectives - both short and long term.
Together, we can develop existing or identify new and specific business aspirations such areas of diversification, expansion, new product lines, new offices etc. These goals need to be clearly defined, meticulously planned, analysed using effective cost/benefit techniques and tested with a range of "what/if" scenarios to allow informed decisions to be made.
The process incorporates many disciplines including those listed on this page i.e. understanding core competences, current trading performance, planning, optimising funding structures and working capital, identifying and addressing areas of weakness and leadership issues in operations, sales & marketing and production.
Corporate Finance
At some point, every business owner will require this service whether it is to establish a new venture, develop an existing business, complete an M&A or engage in a partial or outright sale of a business as part of a succession strategy.
The key objective is to maximise value and/or minimise cost and disruption hence forward planning or "business-grooming" is esssential to deliver results.
Mike is well connected in this field with many contacts in general accountancy firms, boutique corporate finance houses, insolvency practices, private and venture capital providers and will work on your behalf with any number of partners to maximise value.
Change management
The business world is fast moving and can be fiercely competitive and sometimes staying still is just not a viable or sensible option. Change is inevitable be they technological, economical, political or sociological and should be enbraced where possible.
In advising companies on change management, Mike draws on his own considerable first hand experience of such changes at each of his firms. He has played an integral part in many mergers, demergers, acquisitions, reorganisations, rebrands, new IT roll-outs and relocations throughout his 20 years in practice.
VAT and PAYE arrears
It is highly unlikely that any one individual has successfully agreed more time to pays ("TTP's") than Mike has during the last 15 years.
His undoubted expertise in this area was first gained between 2001 and 2003, when Mike played a major role in the Government's Department of Business, Innovation & Skills ("BIS") (formerly "the DTi") "Company Rescue" pilot scheme, the forerunner to the TTP system currently adopted by HMRC.
Since 2003, Mike has continued to develop a firm understanding of the HMRC ethos and guidelines having led a number of dedicated national teams at his respective firms advising on HMRC matters as part of a broader turnaround offering.
He has a proven methodology which focuses on viability, the cornerstone of a credible HMRC TTP proposal.
Along with implementing cost saving and/or efficiency measures (i.e. "self help") and seeking commercial finance where possible, the business must also demonstrate (via forecasts and a short report) an ability to pay ongoing obligations (as and when they fall due in the future) whilst meeting a medium term repayment plan in respect of historic arrears.
To maximise your chances of a success, Mike will help you to identify and implement relevant "pre-requisite" strategies and demonstrate to HMRC that you consider them as a "last resort" rather than the "first" or "only resort".
Mike is a "hands-on" business turnaround professional and provides an interim or outsourced finance director service offering.
His service removes the immediate need for investing in a full time finance director which can be both costly and risky. This could be particularly so, if you appoint the wrong person or if the business has not quite achieved "critical mass".
Mike can be the perfect solution, providing you with the requisite expertise and flexibility but critically without breaking the bank. Indeed, once you achieve critical mass and your business is ready, he will actively help you to recruit a long term full time successor.
In the meanwhile, rest assured that Mike will work hard and help you to take your business to the next level.