Capital Advisory

Financial Modelling

Financial modelling is one of the pillars of raising capital. A new investor putting significant onus on due diligence, accounting and reporting, will require a comprehensive financial model and will look to pose challenges on the inputs and methods used. If Management is unable to adequately substantiate these, the desired valuation will lose credibility.

A strong financial model can also prove a very useful tool for Management by constructing inbuilt financial statements as well as other forecasts e.g. on Key Performance Indicators (KPIs).

Our financial modelling team has been involved in successful ‘capital raise’ processes across the globe, and has stood up to intense scrutiny from investors.

The CS team has also been used for internal management reporting, budgeting and information reasons, with numerous compliments from clients around unseen data analysis/manipulation, yielding to improvements in the business operations or finance function.

Please contact the CS team to discuss our process and financial modelling.

Risk Management

One element of our analysis and review process is to assess the risk management strategy within a company. The type and degree of external funding companies seek will have a major impact on the risk structure of their balance sheet. Through detailed financial modelling we assess the true extent of risks that include:

Currency risk – cross country investments may require different hedging structures, forwards and options, which we can advise on.

Interest rate risk and solvency – if debt is the chosen source of funding we can help to set up the appropriate repayment schedule based on monthly cash flow analysis.

Cash Flow risk – certain business types are ill suited to excessive leverage and and volatile interest rates so we assess the correct level of interest burden based on different cash flow environments achieved within different stages of the economic cycle.

Management Reporting

Management reporting is regularly overlooked as a crucial part of a company’s infrastructure. A streamlined accurate management reporting process is fundamental to a smoothly run business.

Regular complaints are made by executives that reasonable decision-making cannot be achieved because the reports are insufficient or inaccurate.

Insightful reports should come from a blend of the accounting system and manually created reports. These need to be succinct, accurate, and relevant to the business/industry.

Management reporting is all about data input and data manipulation; this can be improved via a quick assessment of the situation, recommendation of some key improvements, and then assistance in implementation

Capital Investment

We work with business owners in a diverse range of companies and industries across the EEA, The Middle East, Africa and Asia. Our advisory services seek to add clarity and conviction to management decisions in key areas such as capital investment, capital raising and general risk management.

Acquisition Assessment – Having already identified an intended acquisition target, our clients often look for a qualified second opinion on the deal, our due diligence will include an assessment on the true value of the asset/business being acquired via discounted cash flow modeling as well as a comparison with other similar investments in the same field.

Target Sourcing – Sometimes our clients are aware of the type of investment they want to make but are unsure of who the exact target should be. Through our networks across Europe, The Middle East, Africa and Asia, we are able to source available ‘for sale’ companies at our client’s request.

Capital Raising – How should you best fund your investment goals?

Undertaking capital investment almost always requires raising capital.

We work closely with early stage as well as more established business, looking to raise the vital debt or equity capital needed to drive business expansion. The size of the business and amount of capital needed will be key drivers of who we approach for funding.

This is highly dependent on the nature of the investment being undertaken. Generally investments with a larger fixed asset base are better suited to debt but everything is assessed on a case by case basis.

Our key relationships offer unique access to Venture Capital and private debt funds across Europe, the Middle East, Asia and the Middle East.

Please contact the CS team to discuss capital Investment requirements.

Internal & External Audit

Audit is the black sheep of the finance world, but it can be turned around and used to the advantage of Management and the business. A strong internal audit function, with regular internal audit assessments and reports will minimise the systemic risks of fraud, theft, and misreporting of (financial) information, all of which have recently been the cause of significant incidents in well-known companies.

Embracing an external auditor can serve a similar purpose; they can serve as a check on the staff in the business, with a perspective not afforded to any company employees. From a regulatory point of view, even if your company is not legally obliged to carry out an annual statutory audit, it can enhance your reputation in the marketplace. This will include any pool of prospective investors, who often will not contemplate investing without an unmodified audit report.

Analysing controls, processes and systems to spot weaknesses and suggest improvements, is an invaluable part of the process in providing an all encompassing report on the overall health of a business

Please contact our CS team to discuss how we can engage with your company.

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Claremont HQ

Waldrist House, Reading, Berkshire, RG7 4NX, United Kingdom