Financial analysis. Company restructuring. Business valuation

Financial analysis shows the owner where the business creates profit, how capital is used and which decisions have the greatest effect on company value. A single model of cash flow, debt load and working capital helps prepare for financing, a sale of a share or restructuring. The result is to turn accounting and management data into a clear basis for decisions by the owner and investor.

Financial analysis

Financial analysis is an essential part of the financial management of any company. The purpose of this analysis is to determine the current condition of the company, which operating parameters are acceptable and should be maintained within their current limits, and which are unsatisfactory and require prompt action. In other words, to move forward successfully, it is necessary to understand why the company’s condition has worsened and how to correct the situation, including which management tools should be used most effectively.

Financial analysis includes:

1. Analysis of financial position
     1.1. Structure of company assets and sources of their financing
     1.2. Assessment of the company’s net asset value
     1.3. Identification of an unsatisfactory balance-sheet structure
     1.4. Analysis of the company’s financial stability
            1.4.1. Analysis of financial stability by the amount of surplus or shortage of own working capital
            1.4.2. Analysis of other indicators of the company’s financial stability
     1.5. Liquidity analysis
            1.5.1. Analysis of the relationship between assets by degree of liquidity and liabilities by maturity
            1.5.2. Calculation of liquidity ratios

2. Analysis of operating efficiency
     2.1. Review of company performance
     2.2. Profitability analysis
     2.3. Calculation of business activity (turnover) indicators

3. Conclusions from the analysis
     3.1. Assessment of key indicators
     3.2. Final assessment of the company’s financial position and operating results

When carrying out financial analysis, we look at the client’s business through the eyes of a potential investor or financier. We calculate financial ratios such as liquidity, business activity, profitability, solvency and market activity ratios.

There are standard reference values for the ratios listed above. We use them to assess the efficiency of the client’s business. We mark indicators that meet the reference values with green flags and indicators that do not meet them with red flags. We then make recommendations for changing the structure of financial flows, helping to turn red flags into green ones.

These measures help management and company owners see the strengths and weaknesses of the business more clearly and improve the structure of financial indicators, which supports the recovery and overall efficiency of the business.

Company restructuring

TAXC Limited supports company restructuring. Our specialists identify high-risk points in the business system, find internal reserves and propose measures to increase its investment attractiveness. Special attention is given to developing an anti-crisis investment plan under conditions of limited financial resources.

A programme for bringing a company out of a crisis consists of three parts:

1. Financial and economic analysis of the company’s condition:

• Assessment and analysis of the company’s current financial condition
• Assessment and analysis of internal and external factors
• Analysis of the advantages and disadvantages of company reorganisation

2. Development of an anti-crisis programme:

• Development of a reorganisation scheme and work schedule;
• Development of a financial recovery plan for the company
• Restructuring of company assets;
• Restructuring of share capital;
• Debt restructuring;
• Technical modernisation of the company;
• Support for the entire reorganisation procedure.

3. Raising investment:

• Development of a detailed plan to increase the company’s investment attractiveness;
• Development of a growth plan aimed at potential investors.

Business valuation

To make a well-founded decision about a partnership, improve management efficiency, plan long-term development, prepare an investment project and in many other cases, it is necessary to assess the value of an operating company or business.

Business valuation is usually required:

• when there is a need to raise financing;
• in the company’s current operations, when business value for the owners is a measure of its efficiency;
• when selling or buying a business or a share in it, including a merger or acquisition;
• during reorganisation, including creation of a holding company, separation of divisions or bankruptcy.

Highly qualified TAXC Limited specialists will value your company or business, provide a full report on its value, and also give a development forecast and an assessment of its market stability.