Automotive Industry. Capability Statement

Transcription

1 Automotive Industry Capability Statement 2016

2 A Contents Pitcher Partners and the automotive industry 1 Our specialist services 2 Making informed strategic decisions 4 Dealership Systems and Controls Review: Are you keeping the profits you make? 5 Meet your team 7 About Pitcher Partners 8-9

3 Pitcher Partners and the automotive industry B1 The pressure has never been greater for automotive businesses to improve efficiency, reduce costs, and of course remain ahead of the competition. At Pitcher Partners, our automotive industry experts leverage their experience and understanding of the opportunities and challenges our clients face in order to provide sound commercial solutions and quality service to our clients. Whether you are a retail motor dealer, manufacturer, distributor, financier, insurance or IT provider - we understand the complex and dynamic environment your business is operating within. Our experienced team can help you with: Audit and assurance Tax compliance and advice Training (both operational and financial) International investment in Australia Remuneration structures and advice Succession and family business planning Profit enhancement services Fraud prevention and investigation Access to key industry contacts and resources Business valuations Buy/ sell transactions Due diligence services Please contact us for a no obligation meeting with one of our automotive service experts to discuss your specific circumstances.

4 A2 Our specialist services 2 Compliance Services Completion of financial statements and tax returns including providing ideas relating to improving business systems and processes, profit opportunities and tax minimisation. Valuations, acquisitions & sales Our services include valuation, managing the full sales process for the vendor, contract negotiations and final settlement. Acting for the purchaser we can assist with due diligence, budgeting, submissions to financiers and franchisors, structuring options and contract issues. Succession Planning We provide a range of tailored services dealing with the critical issues of strategy and succession planning encompassing both financial and non-financial issues. This includes ownership plans, generational plans, estate plans, strategic business plans and succession plans. Strategic Planning We prepare strategic planning processes and reports, executive strategic plans, development and monitoring of actions plans, periodic reviews and planning to meet franchise requirements. Specialist Taxation services Our best practice compliance, risk minimisation approaches and tax effective strategies are designed to optimise opportunities and deliver value to our clients. Operations and profit enhancement We offer a broad range of financial management consulting services. These include: Benchmarking and operational reviews Fixed operations reviews Employee reviews Incentive plan reviews Cashflow analysis Training & development Pitcher Partners specialises in training and development of senior dealership and industry staff in all facets of management including operational, financial and leadership skills. Through our alliance with training and development experts we are able to offer high quality executive and management training and development packages for dealers, distributors/ manufacturers and industry affiliates. Facilities analysis Pitcher Partners are able to provide dealers with a complete analysis of the financial viability of a dealership development or upgrade.

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6 A4 Making informed strategic decisions Before undertaking a key strategic decision such as buying a dealership or expanding a dealership facility, it is critical to undertake a financial analysis, in order to determine the feasibility of any proposed investment, expansion or divestment decision. If undertaken properly, financial analysis is a valuable exercise that can achieve the following benefits: Valuation Preparation or confirmation of a dealership valuation in order to assist in a buy/ sell transaction or to assist in obtaining finance. Performance Management Comparing current and forecast profit to industry Key Performance Indicators, allows identification of underperforming operations, unrealistic profit assumptions or areas of potential improvement. Feasibility Analysis Assists in determining whether a proposed facility spend is financially viable, based on the new facility s impact on expected future profits. Forecasting Allows the identification of payback periods of a facility investment from expected future profits. In addition, it provides a dealership with budgeting ability and analysis of expected outcomes under predetermined operating assumptions. Our strategic financial analysis tool will deliver the above benefits and can be tailored to meet any investment analysis required. Our analysis tool includes the following elements: Financial model which is used to undertake a financial analysis. Sensitivity analysis on the financial model (e.g. what happens to forecast total dealership profit if monthly unit sales drop by 5%) to assess risk ranges. Comparison between the forecast profit and loss in the financial model against key performance indicators for automotive retailers or indicators tailored to the operating conditions of the client to determine adequacy of projected results. Payback period analysis. Detailed financial ratio analysis, including profitability and liquidity ratios. If required, we can generate an integrated profit and loss statement, balance sheet and cash flow statement, for submission to your financier or for Information Memorandum purposes (i.e. if you are selling your dealership). Each strategic financial analysis report is specifically tailored to provide relevant and individual transactions. On completion of the report, we will present the results of the report, and how the results will impact the next stage of the transaction, along with providing suggestions on a subsequent course of action.

7 Dealership Systems and Controls Review: Are you keeping the profits you make? B5 The competitive challenges experienced by automotive retailers in the current economic environment can leave your operations vulnerable to fraud. Critical accounting tasks could fall through the cracks if staff are stretched and segregation of duties is compromised. It is normal for dealerships to focus primarily on developing systems to maximise profits, but in the current environment it is also pivotal to review and adjust systems to reduce exposure to fraud and profit leaks. What makes dealerships vulnerable to fraud? Dealerships have the following characteristics that increase their potential for fraud: Large reliance on people controls Limited segregation of duties Easily removable assets Numerous departments operating under different management and management styles Large volumes of transactions and source documents How we can help At Pitcher Partners, our automotive industry experts have developed questionnaires, retail automotive specific work programs and exception reporting techniques, with which, we can assist you to identify: Weaknesses in internal controls Areas of possible misappropriation or loss Areas of inefficiency, duplication or omission Poor quality asset management How to maximise the use of your computer systems Savvy dealers and financial controllers are taking the time to re-evaluate their internal controls. Frequent checks should be carried out in order to reduce financial exposure and loss and to keep the financial infrastructure running smoothly. Pitcher Partners can tailor a review to suit your dealership size and franchise. By working closely with your staff, we can assist you in protecting your profits and ensuring that you have adequate internal controls in place. We will provide you with recommendations to minimise the opportunities for fraud to occur or in the event of a fraud, to identify it at the earliest possible opportunity and minimise its impact. By asking the right questions, dealerships can increase the strength of their internal controls and reduce the risk of losses.

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9 Meet your team B7 John Gavljak John Taouil Partner John has gained over 20 years experience advising publicly listed and large private businesses across a number of industries including retail, customer and industrial products, manufacturing and the automotive industry. Specialising in the provision of audit, advisory and taxation services to a number of franchised automotive industry groups, John has a strong understanding of automotive industry benchmarks and operations. This understanding has seen him introduce specialist audit, due diligence and buy/sell disciplines in the industry. In addition, as an accredited family business advisor he has worked extensively with family businesses developing and refining their governance structures and processes and gained significant experience in commercial dispute negotiations. Areas of expertise Audit and Assurance services - publicly listed and large private entities Due diligence and transactional services Profit enhancement reviews Family Business Consulting Industry expertise Automotive Retail Consumer and industrial products Investment companies Manufacturing Manager John is a Manager within the Pitcher Partners Automotive team, with over 10 years experience providing audit, advisory, consulting and financial reporting services to a range of clients. John takes a hands-on approach to all engagements, working with clients and their teams to collaboratively scope the engagement process, as well as to provide tailored solutions unique to each organisation. John has developed a reputation of providing high quality client service and has strong technical and people skills, as well as real-life private business experience. John enjoys understanding new businesses and processes and is focused on providing timely outputs to clients. Areas of expertise External audit and assurance Internal control reviews Accounting technical advice Fraud prevention and investigation Buy/sell transactions Business valuations Due Diligence services Industry expertise Automotive Financial services Property

10 10 8 About Pitcher Partners Pitcher Partners is an accounting, auditing and business advisory firm providing personal service and quality advice to high wealth individuals, small to medium public companies, large proprietary companies, local government and privately owned businesses. Pitcher Partners is a national association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation. An association of firms located in Melbourne, Sydney, Perth, Adelaide, Brisbane and Newcastle, Pitcher Partners is purpose-built for the middle market. We have a strong reputation for providing personal service and quality commercial advice to our clients across a broad range of industries. On 1 November 2015 Moore Stephens Sydney and Pitcher Partners Sydney merge to become a new Pitcher Partners Sydney practice. The combined expertise and resources means that clients will benefit from greater infrastructure support both locally and nationally through the Pitcher Partners association. Internationally, clients will benefit from the collaboration and support that comes from the eight largest international accounting network - Baker Tilly International. Increased scale brings unlimited potential for growth, with exposure to new service offerings and greater investment in learning and development. All of this translates to significant opportunities for both our clients and our staff. Our commercial services to dynamic businesses Financial essentials Accounting and Business Advisory Services Audit, Risk Management and Assurance Internal Audit Recovery, Turnarounds and Insolvency Tax advice and Compliance Planning and growth Business Consulting and Commercial Advice Business Performance Improvement Business Structuring Corporate Finance Corporate Governance International Business Advisory Investment Advisory Services Succession Planning Superannuation Services Tax Consulting Technology and IT Consulting Valuations Our private wealth services Estate Planning Family Office Management Investment Advisory Services Philanthropy Services Succession Planning Superannuation Strategies Tax Advice and Compliance Industry specialisations Automotive Retail Professional services Health and aged care Manufacturing Not for profit Property and construction Government and the public sector Agriculture Food and beverage Hospitality Sydney 240+ Total Sydney staff $3.8bn Worldwide revenue 2015 (USD) 141 Countries 28,000+ Partners and staff globally 100+ Partners nationwide 1,200+ People nationally 26 Sydney partners

11 Firm locations Pitcher Partners has the resources and depth of expertise of a major firm, but with a smaller firm feel. We give our clients the highest level of personal service and attention. That s the difference. 9 MELBOURNE SYDNEY PERTH ADELAIDE BRISBANE NEWCASTLE Pitcher Partners is a national association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation.

12 Get in touch John Gavljak Partner - Automotive john.gavljak@pitcher.com.au John Taouil Manager - Automotive john.taouil@pitcher.com.au MELBOURNE SYDNEY PERTH PITCHER.COM.AU partners@pitcher.com.au sydneypartners@pitcher.com.au partners@pitcher-wa.com.au ADELAIDE partners@pitcher-sa.com.au BRISBANE partners@pitcherpartners.com.au NEWCASTLE newcastle@pitcher.com.au Pitcher Partners is an association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation. Industry Statement - Automotive Industry