Business plans are an integral part of any business; key in helping to raise the initial finance and a fundamental tool for management when driving business forward. Good, well thought out business plans, supported by a robust financial forecasting model are essential components for a successful business.
On the other hand, business plans that are all optimism and hope value, that show a “hockey stick” upturn or improvement in financial performance that is not supported by current or recent trading activity, only serve to erode the credibility of management with their key financial stakeholders.
The SKSi team has a vast amount of experience in reviewing business plans and the underlying financial models on behalf of management and all kinds of stakeholders – shareholders, lenders, landlords, pension schemes, etc. We can assist in: -
- Consultation with management and robustly reviewing business plans for consistency and clear logic
- Advising on the suitability of the underlying assumptions, in particular highlighting any vulnerabilities
- Advising, where appropriate, on suitable changes to the forecasting model, which may include
- adjustments to the timing of any cash flow items
- introduction of best and worst case outcomes
- application of sensitivities to reflect inherent forecasting risks
- Building appropriate models
- Advising on format, detail, and content when seeking to raise funds/extend facilities etc.
- Coaching and advising management when engaging with recovery bankers and stakeholders and/or their agents to ensure the fiduciary duties are adhered to.