{"id":244,"date":"2013-05-18T08:05:19","date_gmt":"2013-05-18T08:05:19","guid":{"rendered":"http:\/\/accounting-auditing-corax.co.za\/wp\/?p=244"},"modified":"2013-05-28T06:55:02","modified_gmt":"2013-05-28T06:55:02","slug":"valuations-business-plans-due-diligence-management-accounting-and-reporting","status":"publish","type":"post","link":"http:\/\/accounting-auditing-corax.co.za\/wp\/?p=244","title":{"rendered":"Valuations, Business Plans, Due Diligence, Management Accounting and Reporting"},"content":{"rendered":"<ul>\n<li><b>Business Valuations<\/b><\/li>\n<\/ul>\n<p>Business valuations are required for a number of reasons including acquisition, restructuring, sale, merger, estate duty, litigation, collateral for loans and forced shareholder exists.\u00a0 Many business people can apply a Price\/Equity ratio to a business or a turnover factor for an industry and determine a corporate value.\u00a0 We however believe that the valuation process demand a far more in depth a scientific approach.<\/p>\n<p>We utilize a valuation model that has been designed and tested by experts in the field of valuations.\u00a0 Our model of valuation is based on the projected sustainable free cash flows.\u00a0 In essence this means that the company results are reviewed and adjusted to determine what could be expected (based on history) as a sustainable profit flow.\u00a0 Various risks and growth factors are considered, and using this sustainable profit, the company cash flows are projected into the future to an expected survival date.\u00a0 The dividend flows (after STC) are then considered as the returns the investor could expect.\u00a0 This is then present valued.\u00a0 The residual value of assets on termination date is also included.<\/p>\n<p>The result is a valuation that is based on sound professional views and can be presented as having substance and credibility.<\/p>\n<p>Email:\u00a0<a href=\"https:\/\/mail.google.com\/mail\/?view=cm&amp;fs=1&amp;tf=1&amp;to=website-enquiries@accounting-auditing-corax.co.za\" onclick=\"javascript:_gaq.push(['_trackEvent','outbound-article','http:\/\/mail.google.com']);\" target=\"_blank\">website-enquiries@accounting-auditing-corax.co.za<\/a><\/p>\n<p><b>Kindly Fill Out our Contact Form, and We Will Contact You soon &#8230;<\/b><\/p>\n<p><b><div class=\"contactform\" id=\"cuform\">\r\n\t\t\t<form action=\"#cuform\" method=\"post\" id=\"tinyform\">\r\n\t\t\t<div>\r\n\t\t\t<input name=\"cuf_name\" id=\"cuf_name\" value=\"\" class=\"cuf_input\" \/>\r\n\t\t\t<input name=\"cuf_sendit\" id=\"cuf_sendit\" value=\"1\" class=\"cuf_input\" \/>\r\n\t\t\t<label for=\"cuf_sender\" class=\"cuf_label\">Name:<\/label>\r\n\t\t\t<input name=\"cuf_sender\" id=\"cuf_sender\" size=\"30\" value=\"\" class=\"cuf_field\" \/>\r\n\t\t\t<label for=\"cuf_email\" class=\"cuf_label\">Email:<\/label>\r\n\t\t\t<input name=\"cuf_email\" id=\"cuf_email\" size=\"30\" value=\"\" class=\"cuf_field\" \/>\r\n\t\t\t\t<label for=\"cuf_field_1\" class=\"cuf_label\">Telephone Contact no.:<\/label>\r\n\t\t\t\t<input name=\"cuf_field_1\" id=\"cuf_field_1\" size=\"30\" value=\"\" class=\"cuf_field\" \/>\r\n\t\t\t<label for=\"cuf_subject\" class=\"cuf_label\">Subject:<\/label>\r\n\t\t\t<input name=\"cuf_subject\" id=\"cuf_subject\" size=\"30\" value=\"\" class=\"cuf_field\" \/>\r\n\t\t\t<label for=\"cuf_msg\" class=\"cuf_label\">Your Message:<\/label>\r\n\t\t\t<textarea name=\"cuf_msg\" id=\"cuf_msg\" class=\"cuf_textarea\" cols=\"50\" rows=\"10\"><\/textarea>\r\n\t\t\t<input name=\"ZW1pdF90bmVycnVj\" type=\"hidden\" value=\"NTUwNjc2ODc3MQ==\" \/>\n<input name=\"YWhjdHBhYw==\" type=\"hidden\" value=\"NTQ2MTMxNzczNw==\" \/>\n<label class=\"cuf_label\" style=\"display:inline\" for=\"cuf_captcha\">Please fill in <b>7 + 7 = <\/b><\/label> <input id=\"cuf_captcha\" name=\"cmV3c25h\" type=\"text\" size=\"2\" \/>\n\t\r\n\t\t\t<input type=\"submit\" name=\"submit\" id=\"contactsubmit\" class=\"cuf_submit\"   onclick=\"return checkForm('');\" \/>\r\n\t\t\t<\/div>\r\n\t\t\t<div id=\"kenmorecontent\" style=\"float:right;\">\r\n\t\t\t<a href=\"https:\/\/www.kenmoredesign.com\/\" onclick=\"javascript:_gaq.push(['_trackEvent','outbound-article','http:\/\/www.kenmoredesign.com']);\" alt=\"boston web design\" title=\"Web Design Company\" target=\"_blank\">web design company<\/a>\r\n\t\t\t<\/div>\r\n\t\t\t<div style=\"clear:both;\"><\/div>\r\n\t\t\t<\/form><\/div>\r\n\t\t<script type=\"text\/javascript\">\r\n\t\tfunction checkForm( n )\r\n\t\t{\r\n\t\t\tvar f = new Array();\r\n\t\t\tf[1] = document.getElementById('cuf_sender' + n).value;\r\n\t\t\tf[2] = document.getElementById('cuf_email' + n).value;\r\n\t\t\tf[3] = document.getElementById('cuf_subject' + n).value;\r\n\t\t\tf[4] = document.getElementById('cuf_msg' + n).value;\r\n\t\t\tf[5] = f[6] = f[7] = f[8] = f[9] = '-';\r\n\t\tf[5] = document.getElementById(\"cuf_field_1\" + n).value;\n\r\n\t\tvar msg = \"\";\r\n\t\tfor ( i=0; i < f.length; i++ )\r\n\t\t{\r\n\t\t\tif ( f[i] == \"\" )\r\n\t\t\t\tmsg = \"Please fill out all fields.\\nPlease fill out all fields.\\n\\n\";\r\n\t\t}\r\n\t\tif ( !isEmail(f[2]) )\r\n\t\t\tmsg += \"Wrong Email.\\nWrong Email.\";\r\n\t\tif ( msg != \"\" )\r\n\t\t{\r\n\t\t\talert(msg);\r\n\t\t\treturn false;\r\n\t\t}\r\n\t}\r\n\tfunction isEmail(email)\r\n\t{\r\n\t\tvar rx = \/^([^\\s@,:\"<>]+)@([^\\s@,:\"<>]+\\.[^\\s@,:\"<>.\\d]{2,}|(\\d{1,3}\\.){3}\\d{1,3})$\/;\r\n\t\tvar part = email.match(rx);\r\n\t\tif ( part )\r\n\t\t\treturn true;\r\n\t\telse\r\n\t\t\treturn false\r\n\t}\r\n\tdocument.getElementById(\"kenmorecontent\").style.visibility = \"hidden\";\r\n\t<\/script>\r\n\t<\/b><\/p>\n<p><b>Purchases and Sales of Business<\/b><\/p>\n<p>Due to our exposure to many clients in many different industries we can assist in matching potential buyers and sellers.<\/p>\n<p>We also have much experience in the sale negotiation and can advise and support clients through the process and legal agreements.<\/p>\n<ul>\n<li><b>Business Plans<\/b><\/li>\n<\/ul>\n<p>There are two primary objectives for preparing business plans:<\/p>\n<ul>\n<li>To obtain funding that is essential for development and growth of the business<i><\/i><\/li>\n<li>To provide a plan for early strategic and corporate development<i><\/i><\/li>\n<\/ul>\n<p>A well-designed business plan provides an operational framework that allows the business to enjoy distinct competitive advantages.\u00a0 This in turn should result in increased profit for the business.<\/p>\n<p>A well-developed business plan will serve as a:<\/p>\n<ul>\n<li>Action plan for the next 12 months<\/li>\n<li>Roadmap for the next 2 to 3 years<\/li>\n<li>Performance tool on an on-going basis<\/li>\n<li>Business Promotions tool<\/li>\n<\/ul>\n<p>In order for your business plan to be effective you will need to follow the plan and review it periodically.<\/p>\n<p>A business plan should provide a strategic vision for the business as well as the well-defined strategies for areas such as marketing, organisational structure, pricing, management, shareholding, and products and services.<\/p>\n<p>We offer a service to assist clients in preparing Business Plans and our professional advice on the financial elements of the plan<\/p>\n<p><b>Management Accounting and Reporting<\/b><\/p>\n<p>Management accounting and reporting is essential to all businesses.\u00a0 The success and profitability of a business can be severely affected by lack of good management reporting.<\/p>\n<p>Management reporting needs to be tailored to the uniqueness of the company and designed in a format that is comprehensible and useful to management.<\/p>\n<p><b>Business Restructuring<\/b><\/p>\n<p>Our business experience has equipped us with the knowledge of how best to structure a company, or group of companies, to obtain the most favourable tax treatment and legal protection.\u00a0 Very often good structuring can achieve a number of business objectives that can assist in wealth creation and facilitate the entrance of new shareholders.<\/p>\n<p><b>Due Diligence<\/b><\/p>\n<p>When considering the purchase of a business, there are various factors that need to be considered; financial, deal structure, labour issues, VAT, etc.\u00a0 However, the most important aspect of any purchase is the Due Diligence process.<\/p>\n<p>A Due Diligence is an investigation or audit of a potential investment.\u00a0 For investors it serves to confirm all material facts with regard to the sale, and very often sale agreements are dependent upon the results of a Due Diligence exercise.<\/p>\n<p>This procedure is highly recommended, as it is imperative to ensure that, before entering into a sale transaction, you have a good understanding of the business operation and any obligations and liabilities that may arise as a result of the purchase.\u00a0 Very often a Corporate Valuation is also commissioned along with the Due Diligence.\u00a0 This combination is very effective to provide the Buyer with the required levels of comfort and confirmations of the Sellers assertions.\u00a0 Most valuations are prepared on a Free Cash Flow method, which required a sustainable profit computation.\u00a0 The Due Diligence process will determine the most accurate sustainable profit figure.<\/p>\n<p>These investigations are tailored to the circumstances of the parties involved and to the specific transaction.\u00a0 However, the Due Diligence process would typically cover a review of the following:<\/p>\n<ul>\n<li>Accounting Records<\/li>\n<\/ul>\n<ul>\n<li>Management<\/li>\n<li>Control Environment<\/li>\n<li>Information Technology<\/li>\n<li>Budgeting and Forecasts<\/li>\n<li>Foreign Exchange Risk<\/li>\n<li>Litigation Risk<\/li>\n<li>Existence and sustainability of Sales<\/li>\n<li>An Analysis of Financial Results<\/li>\n<li>Review and Analysis of Fixed Assets and Associated Liabilities<\/li>\n<li>Existence and Valuation of Inventory<\/li>\n<li>Existence and Recoverability of Debtors<\/li>\n<li>Completeness of Creditors<\/li>\n<li>All Statutory Tax Obligations and Compliance<\/li>\n<li>Labour Obligations<\/li>\n<\/ul>\n<p>Email:\u00a0<a href=\"https:\/\/mail.google.com\/mail\/?view=cm&amp;fs=1&amp;tf=1&amp;to=website-enquiries@accounting-auditing-corax.co.za\" onclick=\"javascript:_gaq.push(['_trackEvent','outbound-article','http:\/\/mail.google.com']);\" target=\"_blank\">website-enquiries@accounting-auditing-corax.co.za<\/a><\/p>\n<p><b>Kindly Fill Out our Contact Form, and We Will Contact You soon &#8230;<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Business Valuations Business valuations are required for a number of reasons including acquisition, restructuring, sale, merger, estate duty, litigation, collateral for loans and forced shareholder exists.\u00a0 Many business people can apply a Price\/Equity ratio to a business or a turnover factor for an industry and determine a corporate value.\u00a0 We however believe that the valuation [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[7],"tags":[],"_links":{"self":[{"href":"http:\/\/accounting-auditing-corax.co.za\/wp\/index.php?rest_route=\/wp\/v2\/posts\/244"}],"collection":[{"href":"http:\/\/accounting-auditing-corax.co.za\/wp\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/accounting-auditing-corax.co.za\/wp\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/accounting-auditing-corax.co.za\/wp\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/accounting-auditing-corax.co.za\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=244"}],"version-history":[{"count":5,"href":"http:\/\/accounting-auditing-corax.co.za\/wp\/index.php?rest_route=\/wp\/v2\/posts\/244\/revisions"}],"predecessor-version":[{"id":372,"href":"http:\/\/accounting-auditing-corax.co.za\/wp\/index.php?rest_route=\/wp\/v2\/posts\/244\/revisions\/372"}],"wp:attachment":[{"href":"http:\/\/accounting-auditing-corax.co.za\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/accounting-auditing-corax.co.za\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=244"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/accounting-auditing-corax.co.za\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}