| Financial Planning & Analysis (FP&A)

Market-driven price indication of your company

Financial Planning & Analysis (FP&A) is one of the most important business functions, especially in a dynamic market environment, but many mid-sized companies lack the appropriate processes, talent and tools to execute it well. Our FP&A team helps mid-sized companies to quantitatively support important business decisions of the management based on analysis, business planning and determination of enterprise value factors.

We bring our M&A experience to FP&A projects and always keep an eye on enterprise value in everything we do. Every decision has an impact on the value of your company. We help to identify where the biggest levers lie.

ANALYSIS

A key responsibility of the FP&A consulting team is to ensure that your business is – and remains – financially healthy. As financial assessment experts, we conduct a thorough review of your company’s key figures. Based on this, we will provide you with a report on your company’s financial health and suggestions on where and how it could improve.

Our FP&A consulting team can analyze and determine which products or services are the most effective value drivers. Which ones generate the highest profit and have the highest profit margins? Based on the analyses, we can then point out where and how you can increase the profits of other products or services. Or where to cut expenses in areas that are underperforming.

BUSINESS PLANNING

Schmalenbach’s meaningful statement “The merchant gives nothing for what has been” is more relevant than ever, especially in a dynamic market environment in which we find ourselves since the beginning of 2020 at the latest (pandemic, disruption of global supply chains, war of aggression in Europe). Therefore, a business plan, consisting of a profit and loss statement, a balance sheet and a cash flow statement, each covering 3 to 5 years, is an essential basis for the value-oriented management of your company. Only if you know which project, which product line or which range of services will affect your business plan and ultimately your company value, you can make informed decisions. Our FP&A team analyzes financial statements and other historical financial information and conducts workshops with you, at the end of which you will receive a Financial Model that maps your company for the next 3 – 5 years. By the way, the step to determine the enterprise value of your company is then only a small one for our FP&A team.

BUDGETING

We are happy to work with your company’s departments on budgeting and help them create departmental budgets and then consolidate them into a corporate budget. In practice, this is often the prior step in preparing the business plan for the first year of the planning period, but it is not absolutely necessary.

FORECAST

The interpretation and analysis of your latest Current Trading and the KPIs (Key Performance Indicators) of your business model are important tasks to determine a reliable forecast for the current fiscal year. Our FP&A team can support you with an unbiased view to transparently implement the short-term forecast.

REPORTING & KEY PERFORMANCE INDICATORS

Reporting a lot of information is not difficult in today’s digital world. The trick, therefore, is to identify those KPIs that have the greatest impact on the success of your business and whose optimization will help you meet or even exceed the business plan. Then you can target your focus on influencing those parameters that are the really important levers for your business.

Our FP&A team can help your company gather and prepare your internal financial data and translate it into more accurate financial reports. Reports that contain only the KPIs that really matter and can be understood at all levels of the organization.

ENTERPRISE VALUE

Last but not least, the company valuation. This is where all FP&A activities come together in their effectiveness. Like an orchestra, they produce a sound that can be louder or quieter, harmonic or dissonant, major or minor. On the basis of the business plan, our FP&A team can very quickly prepare a discounted cash flow-based company valuation for you (the golden standard in business valuation practice) and calibrate the result using trading multiples and transaction multiples. And in the run-up to the business valuation, the FP&A team helps to ensure that the result sounds as loud, harmonious and major as possible with the above-mentioned building blocks of Financial Planning & Analysis.

Our FP&A contact persons look forward to hearing from you:

Rüdiger Goll                                                        Rodryk Schönfeld
Managing Partner                                                 Partner
Phone: +40 211 865230                                     Phone: +49 157 72151970
E-Mail: goll@industrieconsult.de                               E-Mail: schoenfeld@industrieconsult.de

In addition, we can give you a reasonable assessment of whether and on what basis a possible sale of shares can be considered successful. You are welcome to engage us as advisor for this single component. We are happy to be a part of your decision-making process with our advice.