CFO Services ADVISORY

Transcription

1 CFO Services ADVISORY

2 1 What is it? In a growing business it s not unusual for the business owner to be a jack of all trades. Their day is spent trying to juggle operational issues, marketing, HR and finances. Given a finite amount of time in each day, it s also not unusual for things to fall through the cracks. Often the finance function is not given the attention it deserves, whether it s due to a lack of skills or just the sheer volume of demands on an owner s time. There s also more to the finance function than just preparing BAS, annual accounts and tax returns. These may satisfy your compliance obligations, but they do little to provide timely reporting information or data to proactively assist with the management of the business. The services of a good CFO are invaluable to any growing business, ensuring accurate and timely information is available to management in order to make informed decisions. They can also assist the business with its cash flow management, identifying any issues well before they arise. A CFO can also proactively develop and execute a plan to deal with any potential shortfall. It can be hard for an owner managed business to justify the costs of a full time resource with these specialist financial skills. That s where Jupiter Advisory can help.

3 Features & Benefits Our tailored CFO solution can give business owners access to specialist financial skills as and when needed, providing better information and better cash flow. Owners also get back that most valuable commodity, time. Features Benefits Experienced financial assistance Tailored to individual needs Only when you need it Cheaper than full time under-utilised staff Better cash flow Real time reporting Better decision making Free up owner s time Better access to capital & finance Credibility when approaching banks Better results No headache compliance No surprises

4 3 How can Jupiter help? Jupiter s CFO service offering helps bridge the financial management gap between a smaller emerging business and a more mature enterprise. Our specialist skills can be provided for a little or as long as required, without having to pay for it when you don t. A one-off project or regular monthly assistance, the Jupiter offering can be completely tailored to your needs and budget. Finance management cycle Complexity ADVISORY Owner Bookkeeper Accountant CFO Time / Maturity

5 4 When the business matures to a stage where the services of a full time CFO are warranted, Jupiter can assist with the selection and recruitment of the candidate that fits the organisation both from a skills perspective and ensure a cultural fit. CFO SERVICES MAY INCLUDE: Review and reporting on monthly results; Cash flow management; Finance applications Negotiations with financial institutions Financial modelling including three-way forecasts; Preparation of and reporting against budgets KPI selection and reporting via dashboards Financial system design and reviews Business acquisition selection and transaction management Succession planning Finance team recruitment and selection assistance Investment analysis Strategic planning assistance Risk identification and management What does it cost? Jupiter s CFO service offering can be tailored to your budget. Depending on the size or complexity of the work required, the cost to the business can typically range from $2,000 per month to $10,000 per month. This represents a significant saving when considering the cost of under-utilised full time senior staff. The benefits also more than pay for themselves, allowing better business decisions with a flow on increase in profitability.

6 5 Can Jupiter assist you? Here s a few questions to start you thinking..

7 Do you get regular updates as to how your business is tracking? Do you have a budget? Do you review how you have performed against budget? Do you get financial statements months after the end of the year has passed? Do you get management accounts within 2 weeks of the end of the month? Do you know which areas of your business are making you money? Do you know what impact adding a new product or business line would have on your results? Do you get a weekly report outlining the financial and non-financial key performance indicators of your business? Do you know if you are going to be short on cash over the next three months? Does worrying about how you are going to pay the bills ever keep you up at night? Do you have problems getting paid by your customers? Do you know who to approach to assist with funding the business? Do you know how to structure a funding proposal in a way to maximise its chances of success? Does your business have a strategic plan for the next 12 months? Are you looking to exit the business in the short to medium term? If you answered No to any of the above questions, take the first step and talk to Jupiter today. t (07)

8 7 Case study 1 Background A small but successful engineering company, Client A, had doubled its turnover in 18 months. With the owner focusing his efforts on keeping up with demand, the business back office systems had not kept up with its growth. The finance team was managed predominantly by the owner using an accounting system that hadn t been tailored to the needs of the business. The proprietor was also concerned that although turnover had significantly increased, profit had remained much the same and he was unable to determine why. CFO Services provided Over a twelve month period, the Jupiter team were able to transform the financial function by: Upgrading the accounting package and tailoring it to the information needs of the business; Redesign of the general ledger and processing systems to allow for reporting of the contribution to profit for each revenue stream; Design and implementation of a KPI dashboard function; Preparation of budgets and reporting against actuals; Key outcomes As a result of these initiatives, the owner now has a system providing timely and accurate information in relation to the performance of the business. Management decisions can be made faster with issues identified quickly, allowing corrective action to be taken before little problems become big ones. This has improved cash flows, overall profitability and given the owner back valuable time.

9 The decision to bring in Jupiter resulted in better information, better decisions and better results - Eric G, Business Owner 8

10 9 Case study 2 Background A large service business in the infrastructure industry, Client B was expecting significant growth due to a number of legislative changes. To accommodate this increase in activity, Client B needed to ramp up its skilled workforce and vehicle fleet to be able to cater for the additional demand sought from their customers. This meant large increases in expenditure to secure and train additional manpower in an environment where the revenue would not be generated until a later date. In addition to these cash flow issues, the company s owners were looking at their succession planning options after being approached by a customer interested in acquiring a stake in their business. To top it all off, the in-house accountant was looking to retire and was not interested in participating in this next stage of the company s development. CFO Services provided To assist the company during this period, Jupiter were engaged to perform the following tasks: Preparation of a three-way forecast detailing the expected impact on the company s profit, cash flow and balance sheet position; Securing additional finance to assist the business meet its obligations during the ramp up period; Development of systems to actively manage the cash flows of the business; Management of the monthly reporting function as well as the annual audit process; Assessment of the relative merits of a trade sale and other exit options including a listing of the company s shares on the Australian Stock Exchange; Pitching a potential initial public offering (IPO) to various brokerage houses; and Preparation of numerous high quality presentations detailing the operations of the business and its current and future prospects for banks, brokers and potential investors.

11 10 Key outcomes With the benefit of Jupiter s specialist financial and commercial skills, Client B was able to secure additional bank and investor funding to meet its requirements during the short to medium term. They were also better able to manage the cash flow requirements of the business during this significant growth period. Client B secured offers from four different brokerage houses to manage an IPO process which would allow the owners to realise significant value from their investment.

12 11 Case study 3 Background A private equity fund established by a not-for-profit entity held investments in a number of commercial enterprises across a variety of different industries. The profits from these businesses were used to fund the activities of the charity and reduce reliance on government contributions. Client C had a very small finance team and the management of the not-for-profit, while accomplished in their respective fields, had little experience managing commercial enterprises. CFO Services provided Jupiter were engaged as an external CFO and undertook the following tasks: Management of the monthly reporting function; Preparation of Board packs including financial and operating updates for all investments; Preparation of annual budgets and strategic plans; Management of cash flows on a whole of group basis; Refinancing of debt; Management of the external audit process; Acceptance of directorships on the Boards of the commercial entities, taking a active role in the management of these businesses. Key outcomes As a result of these efforts, Client C was able to secure returns in excess of 60% per annum in respect of these investments and use these cash and profits to fund their charitable objectives. The expert management of the cash flow function also enabled the group to manage the fluctuating requirements of each business, ensuring any cash flow shortages were identified and dealt with well before they became an issue.

13 With Jupiter in our corner we could concentrate on servicing our community, secure in the knowledge that our finance function and cash flow management were in their expert hands -Michael, CEO 12

14 13 Emma Dolphin DIRECTOR E edolphin@jupiteradvisory.com.au Emma Dolphin M 0455 DIRECTOR Our team Mike Traynor DIRECTOR E mtraynor@jupiteradvisory.com.au M

15 14 Our team Brian Keane DIRECTOR E bkeane@jupiteradvisory.com.au M Natalie McKay DIRECTOR E nmckay@jupiteradvisory.com.au M ADVISORY Interested to find out more? To discuss how Jupiter may be able to assist you, please contact us on (07) for a free initial consultation.

16 ADVISORY (07) for a free initial consultation. info@jupiteradvisory.com.au Unit 5 Cook Terrace, 249 Coronation Drive Milton Qld 4064 PO Box 1499 Milton Qld 4064