Corporate Finance

 

Any activity, process and decision in a company has a financial impact. Taking important decisions is on everyday agenda of managers and shareholders of all types of businesses. In order for these decisions to be qualified, decision makers need top quality and up-to-date information, structured financial and business data.

Grant Thornton’s multi-disciplinary Financial Services Group uses its deep knowledge of financial management practice in number of sectors, including financial institutions, to provide robust, independent and professional advice on today’s most important issues. Our experts are well-versed to work with chief financial officers or heads of controlling on the implementation of company´s strategy into the financial management, cost allocation or post-merger transformation.

Whether it be a complicated challenge, an unforeseen crisis or just a straightforward technicality, businesses can rely on our team for high quality service and highly reliable guidance.

Matěj Čonka

Matěj Čonka

Senior Consultant, Financial & Data Services

Jiří Köhler

Jiří Köhler

Head of Financial & Data Services, GT

Strategy and business cases

Strategy

Definition of strategy, along with company’s mission and vision, is key for establishing a road map to reach the business’s goals and targets and succeed at today’s market. Defining “what are you doing” and “why” helps formulate clear business objectives, as well as communicate the business aim internally and externally. The strategy then reflects business aim, specific goals, time plan of key milestones and responsibilities.

GTA team has wide strategic advisory experience with clients from different sectors. The projects are usually undertaken in form of set of workshops with owners and management, where various topics are being discussed supported by relevant data and analysis. Based on the discussions, GTA experts can transform the results into structured conclusions and recommendations, preparing for the client easy-to-communicate strategy and plan to achieve the set goals. 

Business cases

Business cases, analysis and decision support includes financial calculations to allow the client to take a qualified decision on any specific investment or business opportunity. Projects within this area require detailed analysis of the proposed business case, its determinants and consequences, followed by financial modelling of base case scenario and alternative scenarios, and relevant investment ratios (IRR, ROI, etc).

The GTA team has extensive financial modelling skills, which enable us to prepare flexible models reflecting all specifics of the situation and are tailor-made to each client; we do not use any standardised templates that we would simply “feed up with data”. Our team then analyses the results and provides recommendation to our client. The client is then fully equipped to make qualified decisions.

Financial management

Planning and forecasting

More in depth planning, budgeting and forecasting are linked all together by the same aim – form financial views for the future. Establishment of mid-term financial plan is essential to define targets and time-plan, using various forecasting methods. This is followed by budgeting process defining in further detail short-term plans for individual departments, service units, processes or products.

We offer tools and methods for such processes, as well as professional advice on how the process of preparation of these plans should be structured to be most efficient.

Financial Reporting

Financial reporting is a process of preparation of various reports that are essential for managing the entire business and taking managerial decision. The key purpose of such reports is to provide accurate, structured and quality data for stakeholders, for example giving them timely indication of potential future problems, which are to be resolved before evolving into larger dimensions. Typical recipients of such reports are managers, owners, banks, business partners, etc.

We offer professional advice on both the structure, periodicity and data sources for various periodical reports, as well as on processing the reports and responsibilities.

Controlling

Controlling includes mainly comparison of reality to defined plans and targets; it is a management function of establishing benchmarks, comparing actual performance against them, and taking corrective action whenever required. The aim is to create more efficient environment in terms of processes.

We offer consulting on establishment of new controlling process and reports, or amendment of existing approach to controlling.

Economic system optimization

Under Economic system optimization is mainly meant an efficient Management Information System (MIS). These computer-based systems provide managers with tools to organise, evaluate and efficiently manage the business. Such systems support financial management with consistent data, reports and limit need for manually data processing.

In MIS projects we provide our clients with advice on most suitable key characteristics of the systems (i.e. “what should the system be able to do”), assist in selecting the system and its provider, followed by the role of liaison between your company and MIS provider during implementation phase.

Cash Flow Management

Cash flow management includes all aspects of management of liquid financial funds. These aspects start with planning individual components of cash flow, understanding expected downswings and upswings in cash balance, and taking qualified decision on need for financing or placement of free cash. Cash flow management includes also specifics such as cash pooling, which shall appeal to large group corporate structures and involves efficient cash management at group level.

Our consultancy consists of analysis of client’s historical cash flow, forecast of future cash flows in context with business plan, followed by recommendation for streamlining of the flows and recommendation how to address potential cash shortage or invest potential cash surplus.

Working Capital Management

Working capital management is a wide discipline, involving all its components, such as payables, receivables, inventories. Efficient management of working capital includes not only analysis of historical data, but also calculations of optimal level of these reflecting specifics of each particular business and optimisation of financing.

Our specialists can help you plan, optimize and finance, as well as continually manage your working capital by implementing various working capital management tools and necessary processes.

Financial structure optimization

Financial structure optimization involves number of issues related to various sources of financing of company or group. This complex task is focused on establishing the most suitable financial structure as combination of equity, debt, and/or other types of financing such as mezzanine debt, quasi-equity, etc.

Our team has wide experience in analysis, calculation, establishment and assessment of advantages and risks of various financing structures. In addition, we offer our support for negotiations with banks and other capital providers in order to get the best terms for our clients.
GTA team is ready to analyse the business or specific project and prepare full business plan including all required parts or focus any of the listed topics separately. The finance team has primary focus on preparation of financial plans – flexible, complex, allowing modelling various scenarios and sensitivity testing, and enabling views from different perspectives.

Cost Allocation and Pricing

Cost optimization

Within cost optimization services we prepare and implement certain concepts and models for cost calculations. Such complex solutions include number of individual tasks (analysis of operating processes, performance norms, direct and indirect cost structure, intercompany transfer pricing), which then lead to definition of optimal costing, allowing the management of a company to take qualified decisions on cost-cutting, individual products costing, departments cost efficiency, performance evaluation, etc.

GTA team has number of reference projects from this area, working with clients for number of months on finding and implementing the best solutions for cost optimisation and management. We also possess number of years of practical experience in this area working on managerial positions in manufacturing sector firms.

GTA experts are especial well-versed in the implementation of Activity-based costing (ABC) model which consist of assigning cost to activities and processes based on the causal link of their occurrence. The activities are then assigned to products or services.

Pricing strategy

Pricing strategy is the other side of the coin – calculation of the most suitable price for a product/ service. Pricing strategy shall reflect not only the cost structure of the product/ service, but also the actual market environment and competition.

Our specialists have developed number of tools to establish most suitable pricing model, reflecting all relevant factors affecting the price. We offer expertise and calculation model, assessment of key factors determining the price, testing and implementation of the pricing system.

Preparation of business plans requires complex approach, reflecting all aspects of the business or project itself, such as market analysis, overall strategy, organisational structure, sales and marketing strategy, followed by financial plan, including cost structure and pricing, cash flow and financing structure.

Post-transaction Advisory and Restructuring

Post-transaction integration

The post-transaction integration is a complex long-term task comprising of all areas of the management. Once transaction is completed, the post-transaction integration is essential to utilise the actual potential of the transaction, establish common operation of merged entities and allow the teams to do the business effectively and well.

Our finance team provides clients with post-merger integration advisory, mainly by helping with establishment and harmonisation of financial management processes, financial and operational data synchronisation and management reporting set-up. We offer clients advisory from initial phase of the concept proposition and methodical support, to final stage of the implementation.

Management restructuring

Need for financial management restructuring is usually caused by significant changes or extensive growth of the organisation, which the company needs to deal with. The issues are often complex involving all areas of financial management (financial structure, working capital, cash flow, etc.) and related processes (budgeting, planning, controlling, reporting). The purpose of financial management restructuring involves redefinition of key processes that suit the business’s actual position and allow effective management of key finance areas, so the company operates effectively, and potential finance issues are detected on time.

The GTA finance team first analyses current situation of the client and then proposes amendments to existing management structure or new set-up should the situation require that, as well as outlines next steps, including “quick wins” and structural changes. Then we offer methodological and implementation support for the realisation phase. These projects are long-term with focus on practical solutions; we consider them completed only once solutions are implemented and fully functioning.

Organisational restructuring

Organisational restructuring is often part of complex corporate restructuring process. Organisational restructuring includes number of tasks such as definition of organisational structure, establishment of positions and responsibilities, as well as various processes within the organisation.

GTA team provides professional expertise related to determination of key business processes, most efficient set-up of these and design of the most suitable organisational structure given the specifics of each business, as well as corporate culture. We help our clients through the entire process from designing to implementation and fully operational establishment.

Other services

Financial Modelling

Financial modelling is the process of creating a summary of a company’s expenses and earnings that can be used to calculate the impact of a future event or decision. Such models are intended to be used as decision-making tools. Company executives might use them to estimate the costs and project the profits of a proposed new project. Financial analysts use them to anticipate the impact of an economic policy change or any other event on a company’s stock.

GTA team provides professional approach to the financial modelling in line with the FAST Modelling Standard together with complex additional services.

Internal Financial Audit

Financial audits dig deep into a company’s financial situation, probing accounting records, internal controls policies, cash holdings and other sensitive financial areas. Knowing how to perform a financial audit on your own books can help you to prepare for a possible external audit, keep your accounting system in order and discourage internal fraud and theft.

Our specialists offer tailored services, which will help you to set up and establish a functional internal audit structure that will provide your company with added value and assist you in achieving your goals.