The cash trap: why your best growth month left you short of cash
Revenue is up and cash is tight. The growth cash trap is not bad accounting; it is the gap between what your P&L reports and what your cash position reflects.
News and updates
Avoid later phase EIS pitfalls
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
Avoid first time 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
Managing difficult investors in the Board Room
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
The “Glass Box” Business: Why Transparency (and ESG) is Your New Valuation Multiplier
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
The Secrets to Successful Business Pivot Strategies
Leading a business in a stable market is management. Leading a business when the market is collapsing and reinventing itself? That is transformation. Many established businesses today are facing their “Netflix Moment”—the need to pivot to digital without killing their core cash flow. In this interview, Richard Spilsbury talks to Robert Price, a veteran CEO … Continue reading The Secrets to Successful Business Pivot Strategies
Why portfolio divestments underperform the market
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
Six Warning Signs About Your Finance Set Up
In short Finance says ‘no’ rather than telling you how More accounting staff than salespeople Management accounts take three weeks or longer Forecasts cannot be updated to support a decision Margin by product or project is unknown Cash flow still surprises you If your financial setup is frustrating you, then you could notice the following … Continue reading Six Warning Signs About Your Finance Set Up
How financial modelling can help improve business decision-making
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
Six common mistakes in financial modelling
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