Investment and Capital Control
Investment and capital planning control is accomplished through managerial and financial accounting practices, strategy planning, alignment of CEO objectives to strategy implementation, strategic allocation of resources, tax planning, and corporate finance. Capital Planning, Corporate Finance, Financial Modeling, Investment Management, and Risk Management are central FP&A tasks universal to all companies for investment management, capital control and regulatory compliance since every business must comply with GAAP, risk management principles, and SEC requirements, while ensuring the proper capitalization, capital structure, cash flow, and profits needed to sustain business growth and satisfy investors.
- Assessing the business environment
- Confirming business vision and objectives
- Identifying the types of resources needed to achieve objectives
- Quantifying amounts of resources (labor, equipment, materials)
- Calculating the total cost of each type of resource
- Summarizing costs to implement a budget
- Identifying any risks and issues with the agreed upon budget
- Capital Sourcing with Debt/Equity Structuring -Restructuring
The financial plan includes four primary financial statements (balance sheet, income statement, cash flow statement, and Statement of Owners Equity) that are created within a business plan. We develop financial statements, forecasts, models, and plans including annual projections of income and expenses for your company, division or department. Your finance plan is an estimation of cash needs, a decision on how to raise the cash, such as through activities like sales and marketing, borrowing or issuing additional shares in a company. While a financial plan refers to estimating future income, expenses and assets, a finance plan refers to the means by which cash will be acquired to cover capital investments and future expenses, for instance through earning, borrowing or using saved cash.
CAPITAL STRUCTURE AND SOURCING
Structuring and securing capital for growth is among the most important business activities, yet one that most companies do infrequently. Restructuring a company’s current capital base is even less familiar territory for most businesses. Millennium will assist with the development of a long-term capital plan and exploit its network of sources and relationships to begin executing the plan. To define and meet your capital needs our service encompasses:
- Defining and developing finance plans and related economic, financial and capital components
- Evaluate capital structures and alternatives to improve liquidity while supporting long-term growth.
- Identifying financial institutions and other capital sources that are well-matched with your business model and needs.
- Facilitate initial investor introductions and meetings.
- Assemble and share your ‘financial story’ in a way that is both meaningful and compelling.
- Negotiate with stakeholders to restructure existing debt, equity and other corporate liabilities.
- Explore venture capital, strategic partnerships, joint ventures and alternative capital resources.
- Advise and assist with the management of existing investor / banking relationships.
CAPITAL PLAN MODEL
We develop integrated customized reliable capital plan models, ensuring consistency between Capital and Finance Plans. This allows optimizing the cost of capital, greater ROI, Improved ROA, real time monitoring of KPI’S, conducting cost/performance analysis, review of internal and external reporting procedures, efficiency reviews, capital budgeting, and reference class forecasting. Features of our finance plans are used for ratio analysis including:
- Income statement 3-5 years with EBITDA and EPS details
- Cash flow projection M and Q (3 years) – direct method used
- Cash flow projection annual (5 years)
- Balance sheet projection monthly (3 years)
- Balance sheet – with no. of shares issued and net asset value per share detail
- Notes to the financial statements – with automated data from projections
- Tax account – sales tax, income tax
- Inventory account (5 years)
- Historic ratios (3 years)
- Projected business valuation ratios IRR, NPV, SGR, OCF, FCF, Z-score
- Industry standards comparison (5 years)
- Loan capacity ratios (5 years)
- Annual summary matrix (balanced scorecard) – beginning balance, income statement, cash flow, ending balance (5 years)
- Best/Worst case scenarios (Sensitivity analysis) (5 years)
- Comparison analysis – personnel, sales, advertising, income, cash flow, balance sheet (5 years)
- Advertising & promotion plan detailed (3,5 years),
- Annual ROA / ROE / SGR dynamic analysis tree (5 years)
- Annual WACC / EVA dynamic analysis trees (5 years)
- Break-even analysis per product line
- Annual dynamic What-If analysis (5 years)
- Financial summary with CAGR (5 years)
- Revenue analysis per product line (5 years)
- Actual and summarized projections (income statement, cash flow, balance sheet, SOE, ratios) up to 10 years
- Line of Credit (Overdraft) scenarios
- Executive dashboard timeline (3 years)
- Exchange rate multiplier
Call us to discuss capital planning strategies for asset optimization, investment, superior ROI, working capital management, and improved financial efficiency. We provide technical implementation for all planning initiatives to satisfy GAAP, SEC Regulations, Investor Relations, financial reporting, feasibility, profitability, income, financial statement, and ratio analysis.