Whatever aspirations you have for your business it's important to get professional advice and guidance to protect what you have now and make the right decisions for the future.
To take your business to the next level, you need to manage growth effectively
If you are an entrepreneur with ambitious scale-up plans you’ll need support to manage that growth and stay on top of your finances. Whether you’re an established business with high growth plans or an early stage venture with blitz-scaling aspirations we have the financial expertise to match your ambitions.
You may have already undertaken ‘friends and family’ or more advanced fundraising. You may have already developed or be making good progress in developing your product or service. But the challenge is to ensure you have robust projections and financial reporting in place in support you as you grow your business.
As part of your management team, you will need an experienced finance director who understands the demands that a scale-up process will place on the whole business and particularly the finance function.
Avonglen, will assist you in developing your business strategy and build the financial projections that reflect that strategy. We are familiar with the demands of working with venture capital and private equity firms and providing the materials that are required to secure investment. We can also help bring your strategy to life by introducing structure, clear plans and an operating path to achieve your objectives.
Business planning and reporting
You couldn’t have achieved what you have without an accounting system in place already. But are you able to extract the right data from this package to form the basis of a business plan or to understand what’s already working well and what might need improving?
We work closely with you to develop financial projections in support of business plans. We also help to decide what metrics are most important and use these Key Performance Indicators (KPIs) to help identify the core objectives that will drive forward the growth of your business.
Raising finance/funding
It sounds like you’re an ambitious scale up who needs a solid financial grounding from which to fund growth.
We have experience in helping businesses like yours prepare for third party investment including venture capital/private equity, grants, government funding and possibly loans.
We’ll do everything needed to help make your business a viable investment opportunity. We’ll help facilitate due diligence requests, liaise with prospective investors or other advisers as required and give you our experienced professional guidance during the negotiation of the investment agreement.
Any potential investor will require a whole new level of reporting including a monthly full Management Information (MI) pack with Key Performance Indicators, commentary, a detailed profit and loss account, cash flow report and balance sheet. This will all be supported with a detailed analysis of key numbers such as revenue and employment costs.
Managing growth sustainably
You’ve gone from an ambitious start-up to a high-growth scale-up, but you want to manage the risk that this will inevitably bring.
By working closely with you, we’ll help you shape the strategic direction and develop a financial plan that will provide you with a roadmap for that journey. If sales fail to grow as rapidly as you anticipate or grow substantially more than you had planned for then we will adjust your model to stay within the funding that is available. By reviewing and updating the financial model regularly your business growth plans can be fine-tuned to stay in line with your objectives. .
Define my management structure
To date, you’ve clearly benefited from talented people to help get you to where you are. You may still be bringing additional resources on board to serve the business needs as it stands as well as support your growth plans.
Now may be the right time to review your team and create appropriate organisational structures. We'll help you to identify any skills gaps, expertise and resources needed and put in place defined roles and a management structure that will ensure maximum effectiveness, efficiency and commerciality.
Systems and processes
As your business grows and increases in complexity you need to review your systems, controls and processes.
All businesses reach a point where processes need to be reviewed to ensure that they will meet scale-up demands. Our aim is to help you identify what changes you need to make to support the growth and improve both productivity and profit margins.
Maximise your future success without jeopardising what you have already achieved with a planned approach
If you’re an established business which has enjoyed a period of sustainable growth doing what you do best, you may not be content resting on your laurels and aspire to grow into new markets.
But with reignited ambition comes an element of fear and also risk – your business is doing well and you don’t want to do anything to jeopardise the success you’ve already achieved.
Whether you’re looking to increase your market share significantly, launch a new product or service or start operating and selling into new territories, your business needs a planned approach to maximise success.
Many things will need to be reviewed and possibly changed, from strategies and business plans to current priorities, funding channels and the way you operate. Your existing business needs to continue to thrive while you work out the best way to fund and manage growth.
Avonglen will work with you to position your business for growth, identify opportunities for funding that growth and implement appropriate reporting, systems, controls and management methods as required.
Business planning and reporting
If you’re planning to grow your business, through additional products, services or territories, then you’ll need to know what to expect in terms of the impact. Without detailed financial forecasting about the best and worst-case scenarios for your business, you could be flying blind.
We can work with you to extract the right data in your financial reporting and turn it into detailed insights, projections and forecasts. For example, knowing which products or services are generating the most profit, how much of your business is made up of repeat purchases or where cost of delivery is too high, may impact how you prioritise areas of growth.
Raising finance/funding
If you are ready to take your business to the next level and are looking to build on what you’ve achieved so far then you may need to investigate raising additional finance to help you facilitate this.
We have helped many businesses to identify the most appropriate way of funding growth and preparing for third-party lending or investment and can work with you to ensure your business is an appealing and viable investment opportunity.
We’ll help prepare the specific financial reports you might need, liaise with prospective lenders or investors or other advisers as required and give you our experienced professional guidance during the negotiation of the investment agreement.
Any funder is likely to require increased financial reporting, including a full monthly Management Information (MI) pack. This will include Key Performance Indicators, commentary, a detailed profit and loss account, a cash flow report and balance sheet. All of this will be supported with a detailed analysis of key numbers such as revenue, margins and employment costs. We would expect to provide this information for any business we work with but, as part of your team, we will also be able to provide the specific analysis required by any lender or investor, such as reporting against banking covenants and guide you through the process.
New products, services and territories
Growing your business by expanding your geographical spread, launching new products or increasing your services is a natural progression. Whatever way you decide to do it, you’ll need to ensure you don’t jeopardise current business performance, that you have sufficient resources to be able to achieve your growth plans and that you don’t put yourself in a risky financial situation because of it.
We’ll help you examine all the upsides and downsides of your expansion plans, identify any risks and help you prepare both financially and operationally.
Managing growth sustainably
Growing your business is both exciting and challenging, but you need to mitigate any risks so that you protect what you’ve built up so far. As the saying goes, you’ll need to spend money to make money and there will undoubtedly be a pressure on resources. However, with the right strategy, planning and forecasting, sustainable and complementary growth can be achieved.
We’ll start with a review of where you are now, the best long-term growth opportunities and help you put a plan in place to achieve your objectives so that any extra investment is returned through additional profit and cash generation.
Mergers and acquisitions
As a business that has reached a certain level of success, you may have identified that the best growth route is to merge with or acquire another business. We have a wealth of experience working with businesses in exactly the same position across a variety of industries.
We’ll not only be able to advise on the the most appropriate options for funding a merger or acquisition, but also minimise the risk to your business by analysing the viability of the businesses you are considering and their financial reporting and projections.
With an external and impartial review and assessment of your business, you can ensure you are on the right track
You’ve probably already got some decent financial reporting and forecasts in place but are you sure about what this is actually telling you and whether you are reporting on the right dynamics?
Sometimes, the world of business moves so fast, in both good and bad directions, that you may need to be challenged on your views and financial assessment of the business. This will help you to understand the best next step to propel you forward. This can be a colossal task that will not only take you away from the management of your business but require an external and balanced perspective.
You might know exactly what operational steps you need to take for the future success of your business, but do you fully understand the impact on your financial position and do you have the right coherent information to create strategies and plans.
Avonglen will help you review and assess your current financial situation and look at ways to improve reporting and profit margins and ensure your business is in the best possible position.
Challenge my view
Many business owners, whether managing their company from afar or work ‘in’ it every day – would benefit from a sounding board and external perspective at times. It provides you with the opportunity to have the robustness of your business strategy, plans and operations challenged by someone impartial with no emotional connections.
We will get to know your business, both the numbers and your strategy, understand your long-term objectives and ensure your business is set on the right path. We’ll act as your right-hand person - your First Lieutenant - providing insight and advice every step of the way.
Reporting and analysis
Whether you’re a growing SME or more established business, you may be in a position where your financial reporting and analysis is insufficient or out of date and your processes undefined or no longer fit for purpose. Perhaps you’re currently working on a loan application or other type of project which requires a different kind of reporting structure.
Whatever the reason, all businesses will find that their needs change over time and sometimes it requires an external perspective to set you back on the right path. We work closely with business owners to review internal reporting and processes and provide recommendations on how it can be improved to maximise success.
Improving my cost/profit ratios
Profit margins can fluctuate on a daily basis depending on both internal and external factors, but most businesses will cater for this in their forecasts and have a sufficient buffer. However, there are likely to be ways you can lower the cost of service delivery or product supply/manufacture by making some changes, which will strengthen your cost-to-profit ratios.
We take an in-depth look at your systems, processes and supply network to identify areas where you may be overspending and how we can reduce your production/service delivery costs so that your profit margins increase.
With the right strategy, planning and financial forecasting, you can implement change effectively
Along the way in your business, you will undoubtedly be faced with challenges or new opportunities that require or inspire change, and sometimes reorganisation, to succeed.
There are both internal and external drivers for change, such as innovative leadership and revised goals or the need to adapt to legislation, new technology, market trends or customer needs.
Whatever the reason behind the need for change, there will almost always be financial implications. Managing and facing up to change can be hard and emotional as well as exciting, and can often only be achieved with outside support and an external perspective.
Avonglen's specialist Finance Directors will not only help you make sense of your company’s financial position and the options available to you, but work with you and be there for you while working towards a solution and implementing change for the better.
Business planning and reporting
Having complete clarity from your financial reporting is crucial at any time and only emphasised when faced with change. It’s critical that your finance team are providing the right information to allow you to make the right decisions.
More than simply identifying your income streams and expenditure, it’s important to know precisely how much it costs you to manufacture and deliver your products and services and their profitability.
We dig deep into the fine details of your business and its finances to help you identify where you are now, what changes are happening or are on the horizon, the financial implications of these changes and what measures can be taken to ensure the most positive consequences to the bottom line.
Decisions, goals and objectives
Perhaps the hardest part of any change scenario is making sure that you make the right decisions, set the right goals and that any new objectives are achievable. As a business owner, you may have realised that change is coming and having someone who you trust to talk this through can be invaluable in choosing the right direction for your business and making the right decisions to implement the change.
If you are wrestling with this, you’ll need to have comprehensive financial information and forecast scenarios available to you as well as somebody who understands your business but who can give you an impartial and professional view.
Avonglen understand the complexities of change and the impact it can have on your bottom line. We can provide the financial reporting and modelling that you need but more importantly we can provide you with advice and guidance that will help you make the right choices for your business and your long term objectives.
Management structure
In most scenarios, changes to the management structure in your business will be the consequence of another change, but sometimes, top level retirements or resignations are the catalyst for change across your business. The loss of senior personnel, while sometimes disappointing, can present an opportunity for other changes – for example, the salary saving may allow you to invest in new systems and processes while reviewing your organisational structure to ensure the right people are in place to manage the business effectively.
We’ll help you determine what is the best way forward for your business. After revisiting your strategy, goals and objectives we will then work through the financial modelling options with you and help to identify the most appropriate management structure and investment solutions. Using our financial forecasts and guidance will enable you to make informed decisions that are right for you.
Mergers and acquisitions
Your business could be looking to merge with or acquire another. In either scenario, accurate financial reporting will be needed and financial forecasts will need to account for stock and asset valuation and likely changes to management structure, staffing levels, operations and outputs.
We’ll support you with positioning your business for a strategic acquisition, plan for minimum disruption and ensure the best financial outcome is achieved.
External influences
In any industry, there will come a time when the macro-environment forces change upon us. Sometimes with warning so we have time to adapt, and other times completely out of the blue.
It could be a sudden increase or decrease in demand driven by external factors; a change in legislation that will impact how you operate; or a completely unexpected event that is outside your control. In any case, you will be required to review your business strategy, adjust your forecasts or run various financial scenarios to enable you to work out the long-term financial impact and the risks involved. Whatever you require we’re there to support you and help you find the best way to adapt successfully.
We understand the frustrations that enforced change can bring and the concern about the impact on your business. Our experience of these situations means that we can work with you to help you reach the right decisions.
Next generation - new vision
For some time now, you may have been working in your family owned business, but now you’ve taken over the reins you’ve got your own ideas about how to grow and develop the business.
We’ll work with you and look at the historical performance, the structure as it stands and investigate the most profitable and sustainable way to make your goals a reality - one that builds on what’s been achieved so far but uses your vision to grow to the next level.
Ensure your business is positioned to achieve the best exit for you
There will come a time when you need to think about the next steps for you and your business. Whether this is influenced by a personal desire to take a step back, or the market making it a prime time to sell, you’ll want to know how to achieve the best possible exit.
You may have navigated your way through successful growth and expansion and be ready to exit through sale, management buy-out or stock market flotation. Or you may want to keep your business in the family and carry out succession planning for a generational handover. Whichever route you choose, handing over your company can be difficult.
Avonglen will help you understand how your business will be viewed from an external perspective and will assist in the preparation of your business for the most appropriate exit or handover strategy.
Succession planning
We have worked with several family-owned businesses that have undergone generational change. In our experience, handing a business over from one generation to another is a surprisingly difficult process. The older generation can find it difficult to let go, whilst the younger generation can struggle to make their mark, when they have the previous Chief Executive sitting round the board room table. Tough conversations are often avoided in a family situation.
An experienced external adviser can be very helpful in this process to provide an interface between the generations, to provide guidance to the next generation without being seen as the ‘critical parent’.
We’ll support you to look past the emotional decisions and come up with a plan that will work for everyone, including considerations of equity structure, tax planning and balancing the income and wealth of both generations
Management buy-out
Selling your business to your existing management team has many benefits, not least of which is that they will have in-depth knowledge of the business already, an emotional attachment and a desire to maintain (or even exceed) its current success.
Whether you are the management team looking to buy or the proprietor looking to sell, we can assist in the preparation and delivery of the process; from getting the business ready for change to advising on valuation and funding options.
Trade sale
At Avonglen have bought and sold many businesses as part of the incumbent management team. We are familiar with the process and know how to prepare a business for sale. Whether you are looking to maximise the sale price or ensure the long-term continuation of the business, we'll be by your side, guiding you along the way.
We can help you select the right corporate finance and legal advisers and guide you during any negotiations We will assist you throughout the process to ensure that all of the information required during the due diligence process is available and provided promptly.
Public listing
If you’re an ambitious business looking to grow, an initial public offering (IPO) could support you in raising the capital you need to expand, but it’s a daunting process, and is both time-consuming and complex.
We have led the listing of a company on the main market of the London Stock Exchange so we can offer advice from a position of knowledge and experience. However, we would only recommend it in exceptional circumstances.
