The multi-diamond services are for financial challenges that can emerge at any point in a company's business cycle or special one-time events. These are crucial decision points for a company. They do not represent business as usual, so it is important for business executives and owners to bring in experienced consultants to help shepherd the company through the event.
The skill set needed for these events are specialized as the following examples point out:
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Mergers and Acquisitions: The key to buying or selling a company is to first determine the value of the company and then determine the strategy for negotiating the transaction. Strong financial analytical skills are needed to perform due diligence to evaluate the profit and loss statements, the balance sheets, and the cash flow. Uncovering unusual or irregular balances, transactions, or cash flows can avoid acquiring someone else’s problem. Knowing whether to purchase the company or the assets can also change the exposure to liability.
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Strategic Alternatives: Buy, hold, or sell all or some of the company? Spin off a division or create a subsidiary? What are the correct metrics and what size should the company be? Strategic alternatives need to be evaluated based upon both historical and projected financial statements. Several scenarios, with well documented assumptions should be prepared, along with recommended actions. These decisions have multi-year impacts on a company and getting expert financial assistance can help make a positive impact.
- Equity/Prospectus Preparation: The ability to raise cash successfully is dependent on finding and convincing investors or bankers to put their money at risk. Typically, they want to see a full business plan, including historical and projected financial statements. A prospectus may also be required by law prior to engaging investors. The specialized skills require someone with the experience and knowledge to meet all of the regulations.
5 Diamonds consultants can help in all of these areas and more, including performing an Audit Readiness/Sarbanes-Oxley Financial Compliance or providing an interim CFO to perform all of the above duties.
