Corporate Financial Stewardship

An experienced professional finance staff is critical to a fast-growing business.The finance staff is closely involved in the business, similar to the chief financial officer of a large company, who can help companies create a lot of value. 


However, good professionals are hard to find and the cost of hiring is extremely high. For SMEs, hiring a full-time financial controller is a huge expense. We are aware of the needs of many companies and the advantages that a qualified financial controller can bring. Entrepreneurs can now be rest assured that his business can get good financial management and does not have to pay high salaries. 


ERI's  financial stewardship service will help you monitor your financial situation in a timely manner and provide you with an early warning. At the same time, it can also help companies create value and lay the foundation for future listing or financing plans. The financial steward works like the company's chief financial officer. Depending on your needs, we can help you achieve your specific goals on a regular or irregular basis. We help strengthen internal controls, improve financial operations and increase corporate valuation through different financial management methods, such as:


1. Business plan

2. Budget and variance analysis 

3. Cost analysis 

4. Management report 

5. Key Performance Indicator Review

6. Cash flow management 

7. Loss control 

8. Taxation 

9. Working capital management 

10. Liability management 

11. Value enhancement 

12. Financial Statement Analysis


Testmonial:

An enterprise integrates national business in Southeast Asia, plans to expand its business within three years, and prepares for Hong Kong listing in 5 years. 


Stage 1 – Planing: Business planning, financial modeling, corporate structure optimization 

• Assist companies in developing business plans for the next one to three years

• Prepare financial models including profit and loss statements, balance sheets and cash flow projections based on business plans and certain projection. 

• Assess whether current financial resources are sufficient to support growth plans 

• Stress testing in financial models and simulating how changes in key parameters of the program will affect future performance 

• Optimization for current company structure and operating models 

• Develop a corporate restructuring plan 

• Analyze the strengths and weaknesses and explore different options, with a focus on the impact of taxation, accounting and financing 


Stage 2 - Creating value Corporate valuation improvement 

• Identify business plan areas that may affect company valuation

• Optimize areas that affect company valuation to improve company valuation 

• Work out optimization details and processes

• Continuous monitoring for the ultimate valuation improvement


Stage 3 - Put forward internal control mechanisms & Establish a financial reporting system 

 • To enable the financial system to provide effective financial data to management in a timely manner, and to lay an internal control system for future financing, review the current system to understand how to support larger operations and the need for future listings, and propose ways to gradually improve To the appropriate level. 

 Establish risk management and corporate governance frameworks
 • This includes the necessary decision matrices and decision-making powers to clarify corporate governance policies. Assist the company by optimizing existing operating procedures to standardize processes and ensure that each employee knows their responsibilities.


Stage 4 – Buyer Search and Trading Support 

 • Prepare a detailed work plan, including timelines, resource requirements, and identify issues that need to be addressed

 • Develop a financing memorandum for the company to provide to the prospective investor

 • Develop and improve the positioning strategy of the transaction 

 • The company's fundamental strengths and market potential; assessing specific potential synergies with major investors 

 • Identify issues with management that may affect pricing and potential investor interest 

 • Conduct an indicative valuation to allow management to set a psychological price 

 • Conduct initial communication with potential investors and send company profiles to interested investors

 • Lead negotiations to coordinate the implementation of confidentiality agreements for potential investors 

 • Monitor their responses during potential investor considerations and seek answers to specific questions they ask

.• Representing the company in all discussions and meetings with potential investors 

 • Analyze investor bids and assess the rationality of bids with management 

 • Coordinated due diligence 

 • Lead the discussion with investors and their consultants to solve problems and provide appropriate answers to questions that may arise from due diligence

 • Review the sale and purchase agreement 

 • Assist in the development of negotiation strategies 

 • Assist in negotiating detailed terms of the transaction and including it in the transaction documents. 


The goal is to minimize the representations and warranties that need to be provided to the buyer to protect the interests and guide the negotiations to a clear conclusion.


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*(Original article by ERI,please cite ERI for repost. All rights reserved)

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