Some businesses are across all of this stuff, or are too small to benefit so:
Somewhere between $5m to $80m
WHY?
Unpredictable profitability
WHY?
Declining profitability
WHY?
High growth business
WHY?
Management team / owners are excellent at product / service delivery, less good at finance / admin
WHY?
Looking to sell within next few years
WHY?
WHY?
- Small enough they do not have a CFO / Commercial Mgr
- Big enough they can / need to afford financial analysis
- Management teams tend to be stretched delivering day to day, so run out of time for proper financial analysis
- Dollars involved mean that relatively small changes can have significant impacts on the owner’s dividends
Unpredictable profitability
WHY?
- More likely to be making money by luck, than judgment
- Need to understand what is regularly holding them back
- Can take out some easy variables causing the fluctuations and focus on the ones that are going to generate long term sustainability
Declining profitability
WHY?
- Get in to help before it is too late
- Done early enough the slide can probably be arrested and turned around
- Even if that is hard, maybe a sale can be salvaged from the business before it folds
High growth business
WHY?
- Unable to focus on finances whilst growing rapidly
- Need to understand where to invest most effectively in the business
- Need to ensure there are no barriers to growth
Management team / owners are excellent at product / service delivery, less good at finance / admin
WHY?
- Effectively gives them a CFO looking at their finances every month, so they can focus on customers
- Translates financial imperatives into business actions that make sense to them
Looking to sell within next few years
WHY?
- A business in control and completely on top of its P&L / Balance Sheet is much easier to sell
- Can look for and unlock any value needed to improve the sale price