1. Structure and Operations
“Is my firm’s business structure designed for efficiency and performance?”
Objective: Understanding how the company is operationally and structurally positioned and ascertaining whether the current set-ups inhibits or facilitate the growth prospects of the firm.
2. Strategic Posture
"How effective have my strategies been and how will the future of my firm look like financially based on my existing strategies?"
Objective: The business owner should evaluate the past and current strategies of his/her firm and assess the implication on the firm’s indicative credit ratings and financial structure – past, current and future. The business owner should also identify areas to value-add to the firm, in terms of maximizing returns and minimizing risks and strengthen his/her firm’s balance sheet.
3. Business Conditions
“How will my current operational workflow and business operations affect the overall profitability, solvency, liquidity and efficiency conditions of my firm?”
Objective: For the business owner to evaluate how the firm conducts its operations, what have been the key issues (and the nature) or challenges faced and how the firm dealt with these in the past. To what extent have these been successful and the reasons why. The business owner should also assess this implication on the firm’s indicative credit ratings and financial structure.
4. Preliminary Recommendation
“What steps can I take to grow my firm, strengthen the structure, improve the financial ratings, creating a robust policy to manage cashflows in the future?”
Objective: Based on understanding the business and financial dynamics of the firm, in terms of its structure, operational processes, business conditions and strategic posture, the business owner should then prepare a set of preliminary recommendations. The basis of the recommendation is heavily tied to the prima facie information available to the business owner, who will then map these onto the following areas as detailed as possible:
• Fund raising – banks, investors, government
• Company structure
• Indicative financial ratings and ratings optimization
• Credit policies and strategies
• Financial optimization – profitability, solvency, liquidity and efficiency
• Business modeling
• Marketing mix review
• Cost rationalization
• Capitalization programme
• Taxation
• Risk – concentration issues
• Technical/functional support assistance
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