Whether you are looking to acquire a business, lead a management buy-out, raise capital for expansion or purchase property, finance is everything. Your plans to a large extent rest on being able to raise the necessary funds in a manner that is viable in the long term and from a source that meets your objectives.
In other words, you have to be able to convince the right backers to support your plans in the right way. It’s not just a matter of launching a charm offensive – it takes hard figures to win over professional financiers. Those same numbers are also critical in negotiating your way through a buy-out to secure a deal that makes sense for you. If you haven’t ensured those numbers are watertight before you even get to the table, you could end up saddling yourself with trouble further down the line.
That is why it always makes sense to bring in a corporate finance specialist sooner rather than later. From technical expertise in a complex field to optimising your proposals for the best financial outcomes, a corporate finance consultant can quickly make themselves indispensable to your planning.
Ensuring your ambitions make sense
Whether you are looking at a merger, a takeover or an investment, the first question in anyone’s mind should be – what will I get out of it? Too often, people assume that acquiring a successful new business or investing in a commercial property will provide them with a tidy income without carrying out satisfactory due diligence. Corporate finance experts bring forensic attention to every eventuality, including modelling various risk factors and revealing the impact on your finances if, say, returns dipped 5% or 10% below expectations. In short, a corporate finance specialist will tell you whether or not your plans offer a likely return worth pursuing.
Navigating the technical side
Financial modelling is a specialised area. Yet it plays an important role in everything from forecasting future cash flows to working out an appropriate value for a business, is therefore crucial in business acquisition negotiations. Your corporate finance advisor will provide insight into which equity and investment models potential backers are likely to be using, helping you to shape a business case that is most likely to appeal to them.
Optimising your business strategy
As suggested above, part of the skill of financial negotiations is being able to build a plan to suit your audience. Corporate finance experts can provide critical assistance in this regard, for example helping you to focus on trading performance when preparing pitches to a bank or highlighting size of market and growth potential to equity providers.