Mergers, Acquisitions and Business Sales
Whether you are growing through regular acquisitions or selling the family business, careful analysis of transactions is critical. Eckhoff Accountancy offers help with the following to both buyers and sellers:
- Business valuation
- Due diligence
- Deal structure
- Tax minimization
Clients often ask for assistance in preparing financial models of their business. The purpose of a financial model is to focus management planning on the most relevant aspects of a business, to evaluate the consequences of alternative decisions, to assess the impact of quantifiable outside forces and to provide a flexible structure for modification.
Financial models are projections and forecasts based on a certain set of circumstances. They are designed in a manner to allow for "what if" situations, allowing the model to be adjusted for various alternatives being considered.
The model is also a tool to monitor the progress in implementing changes. As actual performance is compared to the model, adjustments to decisions can be made when necessary.
Cash management involves planning, invoicing, receiving, controlling, monitoring, transferring, disbursing, borrowing and investing funds. The goals of cash management are to control operating costs, maximize cash inflow, minimize cash outflow, optimize borrowing terms, and maximize the yield on idle funds to a degree consistent with the risk that management is willing to assume. Basically, cash management seeks to make less cash do more work. The benefits of effective cash management are improved liquidity, reduced costs and increased profits.
Cash management consulting is one of the most universal and essential client services. It is also one of the most overlooked services because few clients recognize the need for the services, and when they do, they focus on narrow areas, such as loans or investments. Practically every business can benefit from cash management consulting services, particularly in today's volatile cash management arena. Effective cash management requires a company to maintain good banking practices and good relationships with banks, vendors and customers.
Consulting services associated with cash management can range from evaluating a single aspect of a company's cash management procedures to evaluating or assisting in the development of an entire system.
"Give me the usual" or "Call me when its done" are phrases that have no place in the business planning process. "Participation" is the word. Whether it is a team of MBAs or the company's own staff drafting the business plan, all the parties and top management must actively participate in the process. A thorough analysis of the company's current position, strengths and weaknesses must be made. Realistic, obtainable goals must be set. The plan is the map from the current position to the achievement of the goals. The process must engage all operational and administrative functions: production, marketing, finance and human resources.
Eckhoff Accountancy can assist you with your business plan in one or two ways:
- If you or another consultant are able to coordinate the process, then Eckhoff Accountancy can prepare the financial projections to quantify the outcomes to all the "what if" scenarios.
- If you need a professional to coordinate the overall process Eckhoff Accountancy can "quarterback" the team in addition to consulting on financial matters.
Formal, informal, long or short range, the business plan can take a variety of forms and require varying amounts of staff and consultant time. One size does not fit all. Eckhoff Accountancy is sensitive to this and can adapt to your needs accordingly.