1. Consulting on budget planning
Budgeting (“planning”) is the process of calculating and estimating the financial condition, future business results of an enterprise or a business activity (a new project, an investment private,…). Setting up a company’s budget and adjusting it every year is an important job for most business managers.
Purpose of budget planningh
The main purposes of setting up a life plan in an enterprise include:
– Forecast: An estimate of the next period’s implementation plan based on available resources.
– Resource allocation: Every business has a degree of resources in terms of people, capital, assets… Therefore, planning is also a way for businesses to properly allocate resources of the business.
– As a measure: The planning is the measure for the performance in the coming time, the “point” for the business administrator to compare the actual performance with the expectations of the business.
– As an implementation goal: The planning is the measurement of the departments for the next implementation plan, the expectations of the shareholders and that is the common goal that the enterprise is aiming for.
Basic steps of budget planning
Step 1: Determine the planned revenue
For this first step, using the progressive budgeting method, managers will use the previous year’s actual sales figures as the basis for developing projections for the coming year. On the contrary, if according to budgeting method on the basis of revenue and expenditure balance, managers will forecast revenue for each activity based on the actual situation at the time of making the budget.
Step 2: Determine the expected cost of capital
Once a revenue budget has been established, managers develop a cost budget. Based on expected revenue and input cost norms as a basis for determining the costs of raw materials, labor and general production costs constituting the cost of goods.
Step 3: Determine selling, general and administrative expenses and other expected expenses
Based on the scale of revenue and cost price already established, managers continue to make plans for selling expenses, general and administrative expenses and other expenses expected to arise in the coming period.
Step 4: Determine financial revenue/expenses
In this step, the manager will calculate the financial income and financial expenses in the next period based on the revenue and expense plan made in the above steps.
Step 5: Determine the expected profit
Based on the revenue and expense information synthesized in the above steps, the manager will calculate the expected income level in the next period.
Step 6: Come up with alternative hypotheses
During the period of protecting the data of the plan, many hypotheses will be put forward to refute the hypotheses made in the plan, such as hypotheses about unusual events, future changes related to to the market, to suppliers, to employees, to cash flow plans, or to other factors that might affect the results of current hypotheses…
Notes in the process of creating a plan
In the process of setting up a plan, businesses should pay attention to the following important points:
– Leaders of departments in the enterprise lack of coordination and communication in the process of making a plan, which can create a plan that is not close to reality.
– Trend of adjustment to safe level: If the budget is prepared according to the bottom-up method or negotiation, often the planner will intentionally increase costs or reduce revenue to relieve pressure and quickly achieve the plan.
– Budget skepticism: There is always skepticism about the reality of budgeted figures, especially in the case of budgeting according to assigned targets.
2. Advice on making cash flow plans and optimal financial plans
Ensuring a capital structure and funding arrangement aligns with your business goals is essential to planning your strategy while also driving value for your partners.
To ensure sustainable development, a strategic approach is required to define financial goals and understand the financial options of customers, both debt and equity financing. FAT supports customers actively and throughout the financial planning process, from the initial assessment and strategy development to the implementation phase. FAT will assist customers in:
- Define business development plan and funding requirements.
- Evaluate the capital structure and choose the optimal funding for the business.
- Identify potential sources of capital.
- Market access and negotiating methods to help clients achieve competitive terms in the market.
- Develop close and profound communication strategies with shareholders and capital providers.
FAT’s steps in the financial planning consultation process include:
- Strategy and Capital Structure: Which capital structure is optimal for the business to ensure maximum efficiency for the business and stakeholders.
FAT will evaluate the client’s business plan, financial goals and capital requirements to assist the client in developing a strategic plan based on his or her capital structure.
- Evaluation of options: What capital mobilization plans do customers have?
FAT will evaluate its key fundraising goals, solvency, and funding options to determine the appropriate business strategy. Identify relevant preparatory steps and potential funding partners to access and implement the funding strategy.
- Deal Execution: How to Get Customers on Good Terms?
FAT helps customers assess and identify risk factors directly with shareholders and stakeholders, optimizing competitive pressure to achieve the best terms. Effectively combine deal structuring, due diligence and stakeholder management with the development of contingency plans for contingencies.
- Finalization: How does the client complete the financial agreement?
FAT helps customers ensure the implementation of deals, coordinate capital flows and get approval from stakeholders. Help clients develop a strategic plan when negotiating with stakeholders.
- Stay in touch with stakeholders: How can clients manage stakeholder communication to maintain funding?
FAT will assist customers in managing communication with funding partners. Helping clients build business operations and business strategies in line with investors’ wishes, and providing the services necessary for businesses to negotiate effectively with stakeholders.
FAT’s consulting team will support customers in all stages of capital raising. Customers will receive practical, honest and valuable advice to be able to make strategic decisions and achieve desired goals. By disclosing timely and accurate information, FAT also helps customers to build and strengthen the trust of stakeholders.
3. Consulting on business restructuring
Enterprise restructuring is the process of surveying, re-evaluating the current structure and proposing solutions for a new structural model in order to create a better “state” for the enterprise in order to realize the objectives set out in the plan. conditions and circumstances are always changing. The overall goal of restructuring is to achieve a “better fitness” for the business so that it can operate effectively based on the existing foundations of the enterprise’s mission, vision, and strategic direction.
The need for corporate restructuring
The need for business restructuring often comes from:
- The rapid growth in the size of the company’s resources;
- The expansion of the range of activities;
- Business expansion;
- Building and developing reputation, brand and corporate culture in business…
From the change, development of an enterprise, or the appearance of new factors in the business environment, it can lead to an incompatibility of the enterprise’s management mechanism with those changes. . In addition, with the current open and competitive economic market, businesses must always be active and change in all aspects in order to survive and develop sustainably.
It can be seen that corporate restructuring is an inevitable objective need for most businesses now and in the future.
Corporate restructuring includes the following main activities:
- Adjusting the structure of activities: Adjusting the structure of strategic goals, business lines, product categories, operating areas…
- Adjusting the organizational structure of the apparatus: Re-adjusting the functions, tasks and powers of departments, levels of management, titles…
- Adjusting the institutional structure: Adjusting mechanisms and policies through the review and rationalization from work processes to regulations and regulations…
- Adjust the structure of resources: Adjust the structure of investment to create resources and reallocate the use of resources.
Contents that often have to be resolved when restructuring a business:
- Basic corporate restructuring: Survey and evaluate the current structural model (reasonable, unreasonable). Set up a new company structure model; Determining the responsibilities and powers of each department, job description for each individual; Building an overall management system (rules, regulations, regulations, procedures, forms); Implementation training; Operate and maintain the new management system,…
- In-depth corporate restructuring: Includes the work of basic corporate restructuring, plus: Re-establishing administrative and human resource policies; Re-establish marketing and business strategic management policies; Re-establish supply management policy; Re-establish production and technical management; Re-establish accounting and financial management policies; Re-establish other administrative policies.
Stages in the implementation of corporate restructuring implemented by FAT:
- Stage 1: Identify core values and summarize corporate culture
- Stage 2: Re-evaluate the overall operation of the company
- Stage 3: Reorganize the Human Resources Department to be capable enough to perform its duties well
- Stage 4: Proposing a corporate restructuring strategy. The steps to propose the strategy are as follows:
- Step 1: Overall assessment of the company’s current capabilities.Step 2: Estimate the opportunities and challenges in the new period.
- Step 3: Develop a number of strategic options and analyze and select. Depending on the selected option for more detailed development, including the following elements: Positioning; assessment of product value; business model.
- Rebuilding vision and mission: Aligning with selected new strategy.
- New organizational and governance structure: Organizational structure; key areas of activity.
It can be seen that the need for corporate restructuring is always present for every business in the current period. Grasping that trend, FAT has fully equipped with knowledge, experience, personnel as well as facilities to advise and support businesses in need.
4. Business buying advice
Business buying consulting services provided by FAT for businesses include:
- Build an effective business buying strategy.
- Identify and prioritize potential acquisitions.
- Determine the most appropriate business value.
- Develop and implement viable solutions.
- Deliver value when customers buy back a business.
FAT performs services based on the following basic objectives:
- Business buying strategy: Helping customers build a strategic plan for the development and effective use of capital.
Identify options: Help customers identify and prioritize business objects that can be acquired, manage stakeholders, and contact sellers. - Evaluation: Helps customers evaluate the value of the business purchased through an overall review of the business operation and the factors that affect the value.
- Deal execution: Assist customers in negotiating and implementing deals, identifying risks and handling options, protection clauses in purchase and sale contracts (SPA), assessing the potential of the business and preparing ready to implement a post-acquisition plan to reduce risks and create value.
- Create value: Help customers identify, measure, and improve overall performance and benefits, including identifying underserved or profitable areas .
5. Business sales consulting
Consulting services for selling businesses provided by FAT to businesses include:.
- Business portfolio analysis.
- Evaluate divestment strategies.
- Preparing for the divestment of the business.
- Implement an effective divestment process.
- Minimize transaction risks.
- Improve the operational efficiency of the remaining part of the business.
FAT performs services based on the following basic objectives:
- Develop a portfolio strategy: Assist clients in analyzing the current and potential value of their portfolios, develop exit options, assess the internal and external business landscape of the business business in addition to potential options that can support customers’ divestment plans.
- Divestment plan: Assist customers in choosing a valuation method, identify and screen the right buyer, contact the buyer on behalf of the customer, and adjust the value of the business to suit the period. expectations of the buyer and ensure that the customer has all the necessary information.
- Prepare for divestment: Ensure that customers’ investors will have all necessary information and minimize loss of value during the division, separation and sale of the business. FAT will perform an analysis of the most appropriate procurement structure and outline the steps needed to help contractors understand potential cost and profit issues.
- Deal execution: Assist clients in formulating a deal management strategy by making a thorough business separation plan, identifying information required by investors as well as related regulations. Support to evaluate the proposed price and ensure the negotiated value to bring advantages to customers.
- Closing: FAT controls the closing process by preparing a list of actions to close the deal, defining legal requirements, consolidating business separation plans, and Identify the problems the buyer needs assistance with.
FAT helps clients close deals effectively, achieve practical results by assisting in the preparation of closing documents, helping investors complete the transfer agreement (TSAs) and execute the plan. minimize residual costs in the business of the rest of the business.