Advisory & corporate finance
In short Approval once does not mean approval again Test whether you are an ‘undertaking in difficulty’ Keep real risk to investor capital Measure gross assets before the share issue Investors who join the board may count as employees Watch the 30% rule across equity and debt Knowledge intensive status can apply retrospectively If you … Continue reading Avoid later phase EIS pitfalls
In short Six things HMRC will look for in a first application Apply the risk to capital ‘gateway’ test Apply the independence test Check for excluded trades and borderline activities Check the employment test No blanket applications for speculative filings Check the share class and use of funds qualify EIS is a valuable venture tax … Continue reading Avoid first time EIS pitfalls
We caught up with Marina and Adrian to discuss how founders can deal with difficult relationships in the board room with investors. Marina Traversari is a Board Advisor, Link Stone Advisory who has founded, scaled and exited business as senior executive, Chair and Board Advisor and draws from experience at Spherics, Gapsquare, Sage, Oracle and … Continue reading Managing difficult investors in the Board Room
Raising equity is no longer just about the “Hockey Stick” growth chart. It is about transparency. Investors—whether VCs or Angels—are demanding a level of data integrity and ESG compliance that most Series A companies simply don’t have. Richard Spilsbury discusses this shift with Marina Traversari. Having moved from scaling Spherics (a carbon accounting platform) to … Continue reading The “Glass Box” Business: Why Transparency (and ESG) is Your New Valuation Multiplier
In short Trade sellers achieve multiples 40% below the rest of the market Information presented below what smart buyers expect Signposted as a disposal rather than an opportunity The price chip is not anticipated Divesting part of a business can be a strategically smart move for portfolio businesses providing the opportunity to: Analysis of transactions … Continue reading Why portfolio divestments underperform the market
Financial models are powerful tools used for a variety of purposes to assess forward looking financial information to overcome limitations of relying only historic information Some of the best uses for financial models are: We support clients build financial models for a range of business requirements, from simple forecasts to developed models to support decision-making. … Continue reading How financial modelling can help improve business decision-making
In short The wrong business model, lifted from earlier work Complexity nobody else can follow Assumptions with no reliable data behind them Inconsistent formatting and colour coding Broken links between sheets and files No error checks and no validation Six common mistakes people often make when performing financial modelling: We support clients build financial models … Continue reading Six common mistakes in financial modelling
In short Use consistent formatting and colour coding Document every assumption you make Build in error checks and test them Validate against benchmarks and history Design for flexibility, not for rebuilds Review and test on a schedule If you’ve planned your financial model and started to build it We support clients build financial models for … Continue reading Six tips to help you create strong financial models
In short Six things to settle before you build anything Fix the old model, or bin it and start again Understand what the model actually has to satisfy Choose the tool before you are locked into it Get the data structure right at the outset Plan who else will need access, and how Decide how … Continue reading Financial modelling: Don’t start yet
In short Poor cultural fit is the most cited reason acquisitions fail Think about the new employees: your deal rationale is incidental to them Think about your existing teams: their roles are at risk too Imagine how integration will really work; ‘sheep dip’ backfires Do it properly: TUPE or not, there is no benefit in … Continue reading Post-acquisition staffing strategies