5 minute briefings
Here we guide you through the five areas we have identified as key to managing your business.
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Professional fees Are you getting real value for money from your professional advisers? Are you the focus of their attention? Benchmark them -
come and talk to us.
Also ensure you provide your advisors with the information they require in the time and format requested. This will ensure that you are not charged for any overruns that may occur due to information not being presented as needed.
Back office accounting costs Revas, our collection of outsourced back office services that are delivered in an online environment can help you cut costs and free up management time. For further information visit
www.revas.co.uk (external link).
Employee incentives
For many businesses staff costs are the single biggest cost. And yet, far too little effort is made to ensure that those costs are well targeted and the incentives are right.
Tax position
Review your tax position to receive real cash benefits.
Our tax teams can help by ensuring tax payments are minimised and you are making the most of any tax refunds due.
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Keep your balance sheet lean
Prompt conversion of work done into cash is important in any environment, but none so more than now. Question your commercial arrangements with customers. Do invoices go out quickly enough? Can you get paid in advance? Are your suppliers doing their bit? Are debtors converted quickly enough into cash?
We can help you examine your internal accounting systems and procedures to tighten up the working capital cycle.
Using VAT to improve cash flow
It is good practice to ensure that as much cash as possible is retained within your business. By reviewing your VAT position and timing your VAT payments effectively you can maximise recovery and improve your cash flow.
Our
VAT specialists can provide you with advice on the best routes for your business to take.
Working capital is an asset - use it!
Asset Based Lending has come into its own, especially in this market. Lending against assets is less risky for a bank and therefore requires less capital to be held against it. In capital constrained times, therefore, borrowing against the strength of your stock, WIP and debtors can help you raise money that cannot otherwise be raised.
We can introduce you to asset based lenders to help you release cash from your working capital assets.
Collect cash quickly
Collecting cash that is owed to you is a key way of helping to ensure a healthy cash flow position.
We can help you review your cash collection procedures and advise you how to reduce your debtor days.
Release non core assets
To maximise your cash position you need to ensure that your assets are working hard for you. Do you have surplus property? Can you release cash through a sale and leaseback arrangement? Can you turn surplus space from a cost centre to a revenue generating asset? These and others are avenues worth investigating.
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Replacing debt with equity
In the good times, the temptation was to use borrowed money wherever possible to keep the equity dilution from raising new money to a minimum. Today debt availability has disappeared and there is no guarantee, however well you trade, that your facilities will be renewed. It may be time to replace some of that debt with equity and give you the breathing space you need.
Replacing bank facilities
Not all banks are closed for new business. Our teams know the banking markets well and we can help introduce you to bankers, asset based lenders and other new non bank debt providers that have emerged as a result of the credit crisis.
Renegotiating bank terms
Many banks are seeking to renegotiate the terms on which they are prepared to renew their facilities.
Pick up the phone and we'll help you understand what is reasonable in today's markets and what isn't.
Covenant testing
At times like this you must be careful to ensure you remain within the restrictions and covenants imposed by your funding partners.
We can help you put controls in place to monitor your adherence regularly.
Government schemes
The Government has introduced a bewildering array of 'schemes' designed to assist liquidity constrained business. But how helpful are they? Which one, if any, is relevant to you? How do you access this help?
We can point you in the right direction
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Budgeting, forecasting and reporting
More than ever you need to have robust and reliable management information. Without access to timely and reliable information, critical business decisions become risky, if not impossible to make.
Our teams can help you to get the best from your management information and can build you a "fit for purpose" tool to help you manage your business.
Business plan
You'll have a business plan. It might not be a polished complete document but you know where you want to go. More than ever your plan needs to reflect current challenges and opportunities so make sure it is up to date.
Also, for the purposes of raising the necessary finance, today more than ever, you need to present your plan well if you are to secure funds on good terms. We know what the funders need to see - let us help you pull together your thoughts in a well presented, concise form.
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Acquisitions
On the agenda? Want to move into new markets, new geographies or simply strengthen your position today?
We can help you identify suitable acquisitions targets, approach and negotiate a deal and fund the transaction as efficiently as possible.
Non core disposals
Do you have part of the business that doesn't fit? Want to realise cash? Rid yourself of a problem child?
We can help prepare and market the business professionally in order to generate the best possible return and protect the business along the way.
A future sale
Getting a business ready for a future transaction can take time. We'll help you get your business in the best possible shape for a disposal.
A future as a public company?
The pinnacle of corporate achievement? Getting your business in shape to become a public company takes time if you want to do it properly.
Need financial muscle behind you?
There are many opportunities to be taken in this environment. The financially strong have a once in a generation opportunity to improve their market position.
Getting an equity funder on board with the cheque book to support you may be worth exploring.